Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
- Bitcoin price bounces off the key support level of $92,606, indicating a recovery is on the cards.
- Ethereum Price Approaches Upper Consolidation Level of $3,522; a tight close above would signal a bullish trend.
- Ripple price could rise if it breaks the upper limit of the symmetrical triangle.
The price of Bitcoin (BTC) is finding support around its key level, while the price of Ethereum (ETH) is approaching its key resistance level; a tight close above it would signal a bullish trend. The price of Ripple (XRP) is trading inside a symmetrical triangle on Friday, the breakout of which could signal further growth.
Bitcoin bulls target the $100,000 mark
Bitcoin price found support around the 61.8% Fibonacci level of $92,606 on Monday and rose 4.5% over the next three days. This level roughly coincides with the 50-day exponential moving average (EMA) at $93,588, making it a key reversal zone. At the time of writing on Friday, it was trading at around $97,000.
If the $92,606 level continues to hold as support, BTC will extend its rally to retest its key psychological importance level of $100,000. A successful close above it 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 51, above its neutral value of 50 and pointing upwards, indicating an increase in bullish momentum. Additionally, the moving average convergence divergence (MACD) indicator on the daily chart is about to turn a bullish crossover. If the MACD (blue line) crosses the signal line (orange line), it will give buy signals that suggest an uptrend.
BTC/USDT Daily Chart
However, if BTC closes below the $92,606 level, it would extend the decline to retest its key support level at $90,000.
Ethereum price is consolidating between $3,245 and $3,522
Ethereum price is consolidating between the $3,245 and $3,522 range after finding support around its 50% price retracement level of $3,245 on December 23, 2024. At the time of writing on Friday, it is trading around $3,461, approaching the top level consolidation of $3,522.
If ETH breaks above the $3,522 level, it would extend the rally to retest its psychological importance level of $4,000.
The RSI on the daily chart stands at 48, below its neutral value of 50, indicating indecision among traders. However, like Bitcoin, the MACD indicator is above to turn a bullish crossover on the daily chart, signaling an uptrend on the horizon.
ETH/USDT Daily Chart
Conversely, if ETH breaks and closes below $3,245, which is its lower consolidation band, it would extend the decline to retest its next support level at $3,000.
Ripple price shows potential for upward momentum
Ripple price is trading 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. As of Friday, Ripple is trading at $2.45, nearing 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 reads 61 above its neutral value of 50 and is pointing up, indicating an increase in bullish momentum. Like Bitcoin and Ethereum, the MACD indicator is above turning a bullish crossover on the daily chart, signaling an uptrend on the horizon.
XRP/USDT Daily Chart
On the other hand, 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 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.
