- Bitcoin’s price remains around $84,500 on Friday, having gained nearly 3% this week.
- Ethereum’s price is finding support near the $1,861 mark, indicating the possibility of a recovery.
- XRP has broken and retested its support level at the 50-day EMA, currently at $2.43, hinting at a potential bounce.
As of Friday, Bitcoin (BTC) is priced around $84,500, reflecting a nearly 3% recovery this week. Meanwhile, Ethereum (ETH) and Ripple (XRP) are establishing support at critical levels, suggesting that a rebound may be on the horizon.
Additionally, a historic roundtable on crypto asset regulation organized by the US Securities and Exchange Commission (SEC) will take place on Friday. This event will focus on a variety of topics related to digital assets, cryptocurrencies, tokens, and associated protocols. This could introduce volatility into the cryptocurrency market as the SEC takes steps to clarify regulatory uncertainties surrounding cryptocurrencies.
Bitcoin BTC bulls target $90,000 if it surpasses its 200-day EMA
On Wednesday, Bitcoin’s price broke above its 200-day Exponential Moving Average (EMA), reaching a peak of $87,000. However, it struggled to maintain support around the 200-day EMA at $85,515 and experienced a decline of 3% on Thursday, closing below this level. As of Friday, it has shown some recovery, staying around $84,500.
If BTC manages to recover and find support above the 200-day EMA, it could potentially revisit the significant psychological level of $90,000.
The Relative Strength Index (RSI) on the daily chart is currently at 46, having been rejected from its neutral position at 50 on Wednesday, indicating a slight bearish trend. The RSI needs to cross above the neutral level of 50 to sustain any recovery momentum.
The Moving Average Convergence Divergence (MACD) indicator displayed a bullish crossover on the daily chart last week, signaling a buy and indicating the potential for a bullish trend going forward. Furthermore, it shows increasing green histogram values above the neutral zero line, reflecting strength in upward momentum.
BTC/USDT daily chart
Nevertheless, if BTC continues to trend down, it might further decline towards its next support level at $78,258.
Ethereum may rebound if the $1,861 support holds
Ethereum has found support around the $1,861 level since last week and saw a 9% increase by Wednesday. However, it fell by 3.5% the following day. As of Friday, it is trading around $1,970.
If the daily support at $1,861 remains intact, ETH might see its recovery extend to retest the high of $2,258 from March 7.
The RSI on the daily chart registers at 40, after bouncing back from its oversold level of 30 last week, demonstrating diminishing bearish momentum. However, the RSI needs to rise above the neutral level of 50 to maintain recovery progress. The MACD indicated a bullish crossover on Monday, suggesting a buy signal and the potential for a bullish trend ahead, with increasing green histogram bars above the neutral zero line indicating strengthening upward momentum.
ETH/USDT daily chart
Conversely, if ETH breaks below its daily support at $1,861, it could see a further decline towards the next support level at $1,700.
Ripple may recover if the 50-day EMA holds firm
Ripple’s price broke above the 50-day EMA at $2.43 on Wednesday, experiencing a notable 11.46% rally. However, it retraced slightly, retesting the 50-day EMA the next day. As of Friday, it is trading at around $2.42.
If XRP holds support at the 50-day EMA, it could extend its recovery to revisit the $2.72 mark.
The RSI on the daily chart is at 51, hovering near the neutral level of 50, indicating a state of indecision among traders. For bullish momentum to persist, the RSI needs to move higher and surpass the neutral level. The MACD showed a bullish crossover on the daily chart last week, supporting a buy signal and suggesting the emergence of a bullish trend.
XRP/USDT daily chart
If XRP fails to hold the 50-day EMA and closes below this level, it could trigger additional declines towards the next support at $1.96.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, created to function as money. This digital payment method is decentralized, meaning no single person, group, or entity has control over it, eliminating the need for intermediaries in financial transactions.
Altcoins refer to any cryptocurrency other than Bitcoin, though some consider Ethereum not to be an altcoin since both originated from Bitcoin. If so, then Litecoin would be the first altcoin, having forked from the Bitcoin protocol and considered an “enhanced” version.
Stablecoins are cryptocurrencies aimed at maintaining a stable value, typically backed by a reserve of the assets they represent. Their value is pegged to a commodity or financial vehicle, such as the US Dollar (USD), with supply managed by an algorithm or market demand. The primary goal of stablecoins is to facilitate transactions for investors wishing to trade and invest in cryptocurrencies while also providing a storage option due to general cryptocurrency volatility.
Bitcoin dominance measures the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. This metric provides insight into Bitcoin’s appeal among investors. A high level of BTC dominance often occurs before and during a bull market, as investors prefer the stability of established cryptocurrencies like Bitcoin. Conversely, a decrease in BTC dominance may indicate a shift of investor funds towards altcoins in pursuit of higher returns, which typically sparks significant rallies in those altcoins.