- The price of Bitcoin is approximately $82,000 on Monday, following a drop of nearly 15% in the previous week.
- Ethereum’s price has dipped below the $2,125 support level, suggesting a potential further decline.
- XRP is trading at around $2.17 on Monday after experiencing a 27.25% fall last week.
On Monday, Bitcoin (BTC) remains near $82,000 after a nearly 15% decline last week. Similarly, Ethereum (ETH) and Ripple (XRP) followed BTC’s trajectory, plummeting nearly 20% and 28%, respectively, while their momentum indicators show ongoing weakness, signaling the likelihood of additional corrections.
Bitcoin’s price appears set for a downturn after closing beneath the 200-day EMA
On Sunday, Bitcoin crossed below its 200-day Exponential Moving Average (EMA) at $85,754, resulting in a 6.37% decrease. As of Monday, it hovers around $81,800.
If BTC continues to trend downward, it might retest its February 28 low of $78,258. A confirmed close below this mark would likely lead to a further decline towards the next support level at $73,072.
The Relative Strength Index (RSI) on the daily chart sits at 36, having rejected its neutral point of 50 last week, which indicates bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) exhibited a bearish crossover on Sunday, providing sell signals and hinting at a downward movement.
Daily chart for BTC/USDT
Conversely, should BTC make a recovery, it might reach up to $85,000.
Ethereum’s price momentum indicators reflect weakness
Ethereum’s price fell below the $2,125 support level on Sunday after nearly a 20% drop last week. As the week begins, it is trading around $2,051 on Monday.
If ETH continues its downward trajectory, it could test its weekly support level at $1,905.
The RSI on the daily chart reads 35 after rejecting its neutral range of 50 last week, indicating bearish momentum. Furthermore, the MACD also displayed a bearish crossover last week, suggesting that the downward trend may persist.
Daily chart for ETH/USDT
However, if ETH manages to recover and closes above the $2,125 mark, it could retest the next resistance level at $2,359.
Ripple exhibits considerable bearish strength
The price of Ripple faced rejection around its key psychological level of $3 on March 3 and has since decreased by 27% leading up to Sunday. As of Monday, it is trading around $2.17.
If XRP continues its downward correction, it may retest its daily support level at $1.96. A confirmed close below this threshold would likely lead to a decline towards its February 3 low of $1.77.
The RSI reads 42, remaining below the neutral level of 50 and indicating bearish momentum. The MACD too has shown a bearish crossover on Sunday, providing sell signals and reinforcing a downward trend.
Daily chart for XRP/USDT
Yet, should XRP recover, it could test its next resistance level at $2.72.
FAQs about Bitcoin, Altcoins, and Stablecoins
Bitcoin is recognized as the leading cryptocurrency by market capitalization, functioning as a digital currency designed for transactions. It operates independently from any single authority, eliminating the need for intermediaries in financial deals.
Altcoins refer to all cryptocurrencies aside from Bitcoin, although some consider Ethereum not to be an altcoin due to its significance in the market. If this premise holds, Litecoin is the first altcoin, having forked from Bitcoin’s protocol to create an “enhanced” version.
Stablecoins are cryptocurrencies pegged to maintain a stable price, backed by reserves of the asset they represent. Their value is typically tied to a commodity or financial instrument, like the US Dollar (USD), with their supply managed through algorithms or market demand. The primary aim of stablecoins is to establish a reliable entry and exit point for investors looking to engage with cryptocurrencies while also allowing them to store value amid market volatility.
Bitcoin dominance indicates the proportion of Bitcoin’s market capitalization relative to the total market capitalization of all cryptocurrencies combined, providing insight into investor interest in Bitcoin. A high Bitcoin dominance often precedes and accompanies a bull market, where investors favor safe, high-cap assets like Bitcoin. Conversely, a decrease in Bitcoin dominance may signal a shift of capital towards altcoins as investors seek higher returns, often triggering a surge in altcoin prices.