- Bitcoin’s price stands at approximately $82,700 on Wednesday after rebounding 5.52% the day before.
- Ethereum’s price lingers near its weekly support at $1,900; a solid close beneath this level could indicate a deeper correction.
- XRP has found support around its daily figure of $1.96, signaling a potential recovery ahead.
On Wednesday, Bitcoin (BTC) is priced around $82,700 after gaining 5.52% the previous day. Meanwhile, Ethereum (ETH) exhibits signs of weakness, while Ripple (XRP) is showing moments of recovery as these cryptocurrencies brace for fluctuations ahead of the US Consumer Price Index (CPI) release later today.
Bitcoin shows signs of recovery as RSI indicator rebounds from oversold territory
Bitcoin’s price dipped below the 200-day EMA at $85,664 on Sunday, seeing a decline of 9.14% by the following day. However, BTC managed to retest and find support around $78,258, allowing it to rise by 5.52% on Tuesday. As of Wednesday morning, it remains near $82,700.
If BTC persists in its downward trend and closes below $78,258 (a low recorded on February 28), it may extend its decline to revisit the next support level at $73,072.
The Relative Strength Index (RSI) on the daily chart currently shows a reading of 40, rising from 30 on Monday, which indicates diminishing bearish momentum and a possible transition from oversold conditions. However, for the recovery rally to maintain its strength, the RSI must rise above the neutral threshold of 50.
BTC/USDT daily chart
Should bullish momentum gather pace, BTC could climb as high as $85,000.
Ethereum’s price momentum indicator is showing signs of weakness
After dropping 7.69% on Monday, Ethereum’s price recovered by 3.13% the following day, closing slightly above the weekly support level at $1,905. As of Wednesday, it hovers around that support mark.
If ETH continues to slide and closes below $1,905, it might experience a correction that could bring it down to test the next support level at $1,700.
The RSI on the daily chart indicates a reading of 32, trending down towards the oversold level of 30, which reflects strong bearish momentum.
ETH/USDT daily chart
If Ethereum experiences a recovery, it could aim to test its next daily resistance level at $2,359.
Ripple may recover if its $1.96 level remains intact
Ripple tested its daily support at $1.96 on Tuesday, leading to a recovery of 7.40%. On Wednesday, it continued this upward trend, trading at approximately $2.20.
If XRP manages to maintain its recovery, it might extend its gains to challenge its next resistance level at $2.72.
The RSI on the daily chart shows a reading of 44 and is trending upwards towards the neutral level of 50, suggesting diminishing bearish momentum. However, for the recovery to be sustainable, the RSI needs to move above this neutral threshold.
XRP/USDT daily chart
Conversely, if XRP undergoes a correction and falls below the daily support at $1.96, it could see a further decline, retesting its February 3 low of $1.77.
Bitcoin, Altcoins, Stablecoins FAQs
Bitcoin is the leading cryptocurrency by market capitalization and is designed to function as money. This digital currency operates without the control of any single individual or organization, eliminating the necessity for third-party involvement in financial transactions.
Altcoins refer to all cryptocurrencies other than Bitcoin; however, some consider Ethereum as a non-altcoin because it is from the two that forking occurs. Under this definition, Litecoin can be deemed the first altcoin, having forked from Bitcoin’s protocol and considered an “enhanced” version of it.
Stablecoins are cryptocurrencies designed to maintain a stable value, with their worth backed by reserves of the asset they represent. To achieve this stability, the value of a stablecoin is pegged to a specific commodity or financial instrument, like the US Dollar (USD), and its supply is adjusted through algorithms or in response to demand. The primary goal of stablecoins is to serve as a gateway for investors looking to trade and invest in cryptocurrencies, allowing them to preserve value amid the overall volatility of cryptocurrencies.
Bitcoin dominance indicates the ratio of Bitcoin’s market cap to the total market capitalization of all cryptocurrencies combined. This metric offers insights into Bitcoin’s allure among investors. A high BTC dominance typically occurs prior to and during bullish trends, as investors gravitate towards the more stable and high-value cryptocurrency like Bitcoin. Conversely, a decrease in BTC dominance often signifies that investors are reallocating their capital towards altcoins in search of higher returns, which can trigger significant surges in altcoin values.