- Bitcoin price inches closer to the critical $105,000 resistance; a daily close above could trigger a run toward its all-time high.
- Ethereum tests key support at the 200-day EMA of around $2,438, a crucial level for maintaining a bullish structure.
- XRP stabilizes near the 50-day EMA at $2.27, defending support amid broader market consolidation.
Bitcoin (BTC) price is approaching a crucial resistance level at $105,000 on Friday; a breakout would determine whether bulls regain full control. Ethereum (ETH) and Ripple (XRP) prices hold key support zones that may dictate the next directional move. As BTC nears a potential breakout point, ETH and XRP must defend their support levels to sustain the broader bullish momentum.
Bitcoin could rally toward its all-time highs if it closes above $105,000
Bitcoin has failed to close above the $105,000 resistance level and has faced multiple rejections since Sunday. BTC has been consolidating below this resistance level for the past four days. At the time of writing on Friday, it is nearing the key resistance level at $105,000.
If BTC breaks and closes above $105,000 on a daily basis, it could extend the rally toward the all-time high of $109,588 set on January 20.
The Relative Strength Index (RSI) on the daily chart reads 70, hovering around its overbought levels of 70, indicating bullish momentum. However, traders should be cautious as the chances of a pullback are high due to its overbought condition. Another possibility is that the RSI remains above its overbought level of 70 and continues its upward trend.
BTC/USDT daily chart
On the other hand, if BTC faces rejection around $105,000, it could extend the decline to retest the psychological support level at $100,000.
Ethereum holds strong around its 200-day EMA
Ethereum price retested and found support around its 200-day Exponential Moving Average (EMA) at around $2,438 on Monday and rallied 7.38% the next day. However, ETH lost most of its recent gains and declined until Thursday. At the time of writing on Friday, it hovers around $2,575.
If the 200-day EMA at $2,438 continues to hold as support, the rally could extend to retest its key psychological level at $3,000.
The RSI on the daily chart reads 73 above its overbought level of 70, pointing downward, indicating fading bullish momentum. For the bullish trend to be sustained, the RSI must move above its current levels and continue its rally.
ETH/USDT daily chart
However, if ETH faces a pullback, it could find support around its 200-day EMA at around $2,438.
XRP bulls could rally if the 50-day EMA holds as support
XRP price faced rejection around its $2.72 daily level on Wednesday and declined nearly 7% until the next day. At the time of writing on Friday, it hovers around its key support level at $2.27, its 50-day EMA.
If the 50-day EMA holds as support, XRP could trigger a rally to retest its $2.72 resistance level.
However, the RSI on the daily chart reads 66, having pulled back from its overbought levels at 70 on Tuesday, indicating fading bullish momentum. The RSI must move above its current levels for the bullish momentum to be sustained.
XRP/USDT daily chart
Conversely, if XRP closes below its 50-day EMA at $2.27, it would extend the correction toward its next key support at $2.23.
Bitcoin, altcoins, stablecoins FAQs
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 one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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