- Bitcoin price approaches key $100,000 level; a tight close above would signal a continuation of the ongoing uptrend.
- Ethereum price is closing above its upper consolidation level of $3,522, indicating bullish momentum.
- Ripple price could rise if it breaks the upper limit of the symmetrical triangle.
Bitcoin (BTC) price approaches key psychological level of $100,000; a tight close above would signal a continuation of the ongoing uptrend. Ethereum (ETH) price is closing above its upper consolidation level of $3,522, indicating bullish momentum. While Ripple (XRP) price is trading within a symmetrical triangle on Monday, a breakout from which could signal further upside.
Bitcoin price shows potential for growth
Bitcoin price found support around the 38.2% Fibonacci retracement level, pulled back from the November 4 low of $66,835 to the December 17 high of $108,353, to $92,493 on December 30, 2024 and it rose 6% over the next six days. This level roughly coincides with the 50-day exponential moving average (EMA) at $94,182, making it a key zone. At the time of writing on Monday, BTC was trading around $98,900.
If BTC continues its upward momentum, it could extend its rally to retest its key psychological importance level of $100,000. A successful close above that level would extend further upside to retest its December 17, 2024 all-time high of $108,353.
The relative strength index (RSI) on the daily chart is at 55, above its neutral value of 50, and is pointing upwards, suggesting bullish momentum is gaining strength. Additionally, the moving average convergence divergence (MACD) indicator on the daily chart reversed a bullish crossover on Sunday, signaling a buy signal and continuation of the uptrend.
BTC/USDT Daily Chart
However, if BTC closes below the $92,493 level, it would extend the decline to retest its key support level at $90,000.
Ethereum is poised to rally as it closes above its consolidation zone
Ethereum price broke to close above its upper consolidation level of $3,522 on Friday and recovered 1.6% by Sunday. At the time of writing on Monday, it continues to trade in the green at around $3,667.
If ETH continues its uptrend, it would extend the rise to retest its psychological importance level of $4000.
The RSI on the daily chart is at 57, above its neutral value of 50, and is pointing upwards, suggesting bullish momentum is gaining strength. Moreover, like Bitcoin, the MACD indicator turned a bullish cross on the daily chart on Friday, signaling an uptrend.
ETH/USDT Daily Chart
On the other hand, if ETH breaks and closes below $3236, it would extend the decline to retest its next support level at $3000.
Ripple price could rise if it breaks above the symmetrical triangle pattern
Ripple price trades within a symmetrical triangle, a technical pattern formed by connecting multiple highs and lows with two converging trend lines (early December to early January). This technical pattern has a bullish bias and the target is generally obtained by measuring the distance between the first swing high and the first swing low to the breakout point. On Monday, Ripple is trading at $2.40, approaching the upper triangle trend line.
Assuming a breakout occurs by closing the daily candlestick above the daily resistance level at $2.56, the technical target obtained by this pattern would be $3.63. Investors should be wary of this theoretical move as it could face a slowdown after a 17% rally to retest Ripple’s $3.00 psychological importance level as traders may decide to book profits.
The RSI indicator stands at 58, above its neutral value of 50, indicating an increase in bullish momentum. Additionally, the MACD indicator is above turning a bullish crossover on the daily chart, signaling an uptrend on the horizon.
XRP/USDT Daily Chart
However, if XRP closes below the daily support level of $1.96, it would extend the decline to retest its next support level at $1.40.
Frequently Asked Questions About Bitcoins, Altcoins, Stablecoins
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group or entity, which eliminates the need for third-party involvement during financial transactions.
An altcoin is any cryptocurrency other than Bitcoin, but some also consider Ethereum a non-altcoin because the two cryptocurrencies are forking. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, its “improved” version.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by the reserve of assets they represent. To achieve this, the value of any stablecoin is tied to a commodity or financial instrument, such as the US dollar (USD), whose supply is regulated by an algorithm or demand. The main goal of stablecoins is to enable investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value as cryptocurrencies are generally subject to volatility.
Bitcoin dominance is the ratio of the market capitalization of Bitcoin to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin interest among investors. BTC’s high dominance usually occurs before and during a bull run, in which investors resort to investing in a relatively stable, high market cap cryptocurrency like Bitcoin. A decline in BTC’s dominance usually means that investors move their capital and/or profits into altcoins in search of higher returns, which usually causes an explosion of altcoin growth.
