- Bitcoin price is closing below the $100,000 support level, indicating further downside.
- Ethereum price is closing below the weekly level of $3,522, indicating a correction on the horizon.
- Ripple price retests daily support level of $2.21; a tight close below would continue the ongoing pullback.
The price of Bitcoin (BTC) is moving below $98,000 on Friday after falling more than 6% this week. Ethereum (ETH) and Ripple (XRP) followed in BTC’s footsteps, closing below their key support and falling 12% and 4.5%, respectively, this week.
This recent price drop has caused a wave of liquidation in the crypto market. This drop resulted in over $1.17 billion in total liquidations in the last 24 hours and over $238 million in BTC, $220 million in ETH, and $47 million in XRP, according to CoinGlass data.
Liquidation diagram. Source: Coinglass
Bitcoin price is poised to fall as it closes below the $100k support level
The price of bitcoin hit a new all-time high of $108,353 on Tuesday and fell 7.8% over the next two days, closing below the $100,000 support level. At the time of writing on Friday, it is hovering around $97,500.
If BTC continues its correction, it could extend the decline to retest the $90,000 support level.
The relative strength index (RSI) on the daily chart is at 49 below its neutral level of 50 and is pointing down, indicating bearish momentum. The Moving Average Convergence Divergence (MACD) indicator also showed a bearish crossover on Wednesday, suggesting a downtrend.
BTC/USDT Daily Chart
However, if BTC recovers and closes above $100,000, it could extend its climb to retest its all-time high (ATH) of $108,353.
Ethereum bears are gaining momentum
Ethereum price faced rejection around the $4,000 level on Monday and fell 14% over the next three days, closing below the weekly level of $3,522. At the time of writing on Friday, it was trading around $3,450.
If the $3,522 level holds as resistance and ETH closes below $3,335, it would extend the pullback to retest its next daily support at $3,029.
The RSI on the daily chart is 42 below its neutral level of 50 and is pointing down, indicating strong bearish momentum.
ETH/USDT Daily Chart
If ETH breaks and closes above the $3,522 level, it could extend the recovery to retest the $4,000 level.
Ripple bulls are showing signs of exhaustion
Ripple price faced rejection around the $2.66 level on Tuesday and fell 12.78% in the following two days. At the time of writing on Friday, it bounces off the daily support level of $2.21 and is trading around $2.33.
If XRP closes below the $2.21 support level, it could extend the decline to retest the next support level at $1.96.
The RSI on the daily chart is at 57 after rejecting the overbought level of 70 on Tuesday, indicating signs of weakness in the bullish momentum. If the RSI falls below the neutral level of 50, it could signal a sharp drop in the Ripple price.
XRP/USDT Daily Chart
If XRP rises and closes above $2.66, it could extend the rally to retest the psychologically important $3.00 level.
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 except Bitcoin, but some also consider Ethereum a non-altcoin because of the forking of the two cryptocurrencies. 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.
