Bitcoin (BTC) is hovering around $85,600 as of Monday, following a 4.25% recovery over the past week. Ethereum (ETH) and Ripple (XRP) are also mirroring this movement, trading near their respective key levels with weekly gains of nearly 7% each.
Bitcoin Bulls Target the $90,000 Mark
Bitcoin’s price broke above and closed above its 200-day Exponential Moving Average (EMA) at approximately $85,502 last week but struggled to hold support. However, it managed to break and close above this level again on Sunday. As of this writing, BTC is trading around $85,600 on Monday.
If BTC finds solid support near its 200-day EMA, it could extend its recovery and retest the crucial psychological level of $90,000.
The Relative Strength Index (RSI) on the daily chart reads 48, pointing upward toward the neutral level of 50. This suggests that bearish momentum is weakening. For the recovery to sustain, the RSI must climb above the 50 neutral level. The Moving Average Convergence Divergence (MACD) indicator displayed a bullish crossover on the daily chart last week, generating a buy signal and hinting at a potential upward trend. Additionally, it shows rising green histogram bars above the neutral zero line, indicating strengthening bullish momentum.
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Should BTC fail to hold support near the 200-day EMA and close below $85,000, it might extend its decline and retest the next support level at $78,258.
Ethereum Could Extend Recovery If $1,861 Holds
Ethereum’s price has been retesting and finding support near its daily level of $1,861 over the past two weeks, rallying nearly 7% last week. As of Monday, it is trading around $1,980.
If daily support around $1,861 holds firm, ETH could continue its recovery and retest its March 7 high of $2,258.
The RSI on the daily chart reads 40, nearing the neutral 50 level, which indicates weakening bearish momentum. However, the RSI must move above 50 to confirm sustained recovery momentum. The MACD indicator showed a bullish crossover on the daily chart last week, signaling a buy opportunity and suggesting potential bullish trends ahead. It also displays rising green histogram bars above the zero line, reflecting increasing upward momentum.
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If ETH breaks and closes below the daily support of $1,861, it could resume its downward move and retest the next support level at $1,700.
XRP May Resume Rally If 100-day EMA Holds
Ripple’s XRP broke above its 100-day EMA, situated around $2.31, last week and gained nearly 7%. As of Monday, it is trading near $2.42.
If the 100-day EMA continues to provide support around $2.42, XRP could extend its recovery and retest the next resistance level at $2.72.
The RSI on the daily chart reads 51, hovering near the neutral 50 level, indicating uncertainty among traders. For bullish momentum to continue, the RSI needs to point upward and climb firmly above 50. The MACD indicator triggered a bullish crossover on the daily chart last week, generating a buy signal and hinting at potential upward movement.
If XRP fails to hold support near its 100-day EMA and closes below it, the price could decline further and test the next support level at $1.96.
Frequently Asked Questions
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization. It is a virtual currency designed to function as money. This form of payment is not controlled by any individual, group, or entity, eliminating the need for third-party involvement in financial transactions.
What are altcoins?
Altcoins refer to any cryptocurrency other than Bitcoin. However, some consider Ethereum not to be an altcoin due to the historical forking relationship between the two. If that’s the case, Litecoin was the first true altcoin, forked from the Bitcoin protocol as an "improved" version.
What are stablecoins?
Stablecoins are cryptocurrencies designed to maintain a stable price, backed by reserves of assets. Their value is pegged to a commodity or financial instrument, such as the US Dollar (USD). Supply is regulated by algorithms or demand. The primary goal of stablecoins is to provide an entry/exit point for investors trading cryptocurrencies. They also allow investors to store value, especially given the high volatility typical of other digital assets.
What is Bitcoin dominance?
Bitcoin dominance refers to the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies. It clearly indicates investor interest in Bitcoin. High Bitcoin dominance often occurs before and during bull markets when investors flock to relatively stable and high-market-cap assets like BTC. A decline in Bitcoin dominance usually signals that investors are moving capital and/or profits into altcoins seeking higher returns, often triggering altcoin rallies.
How do I start trading cryptocurrencies?
Beginners should start by researching reputable exchanges, understanding wallet security, and learning basic technical and fundamental analysis. It’s also wise to start with small amounts and use risk management strategies like stop-loss orders.
What affects cryptocurrency prices?
Cryptocurrency prices are influenced by factors such as market supply and demand, regulatory news, technological developments, investor sentiment, macroeconomic trends, and adoption by institutions or governments.