Altcoins

Altcoins Beat as BTC Hides Directional Bias

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  • Bitcoin price could reverse the current market structure if bulls manage to close a stable candlestick above $65,500.
  • Ethereum’s 26% price upside potential is at risk as ETH tests $2,900 support.
  • XRP offers another buying opportunity at $0.50 as Ripple price plunges nearly 10% in a week.

Bitcoin (BTC) continues to hide its hand on higher timeframes, with the position forcing altcoins to choose a side. Altcoins with bullish fundamentals continue to show near-term strength, while those without them continue to bleed. The fate of altcoins depends on BTC with a show of stability likely to trigger a price rally in Ethereum (ETH) and Ripple (XRP).

Read also: Crypto Market Eyes Bullish Reversal

Bitcoin price attempts to reverse market structure

Bitcoin price is trading with a bullish bias on the H4 timeframe, consolidating along an ascending trendline. The Relative Strength Index (RSI) has made a few higher highs, suggesting a growing uptrend.

However, for the current market structure to change, the bulls must successfully push BTC past $65,500 and maintain a stable price. candlestick above over four hours chart. Such a move would pave the way for an extension of the threshold of $72,797, beyond which the all-time high of $73,777 would be ready to be resumed.

BTC/USDT 4-hour chart

Conversely, if the bears are successful, Bitcoin price could decline, breaking below the support confluence between the ascending trendline and the horizontal line at $60,630. In a disastrous event where BTC falls below the psychological level of $60,000, it would trigger panic selling. This could send Bitcoin price all the way to the $56,552 support level before a possible recovery.

Read also: Bitcoin price attempts to recover after week-long downtrend as mainland China wants to enter Hong Kong spot BTC ETF

Ethereum Price Target of 26% May Fail

Ethereum price consolidation in a falling wedge pattern continues as the bullish technical reversal formation signals a possible target target of 26%. However, as BTC hides its directional bias, this potential weakens.

Notably, Ethereum price fell below the ascending trendline, compounded by the RSI’s equal lows. If the RSI support breaks, ETH could fall, making a lower low and extending the downtrend below the $2,900 threshold.

ETH/USDT 1-day chart

On the other hand, increased buyer momentum above current levels could result in Ethereum Price break the resistance level of $3,212. A stable close above this level on a one-day time frame would activate the breakout, potentially sending ETH 26% north to $4,083.

Read also: Ethereum May See Uptick as Institutional Whales Make Large Deposits on Coinbase.

XRP Bulls Have Another Buying Opportunity

Ripple Price tested the 50% Fibonacci placeholder once again. But all hope is not lost as XRP tests support due to the 50% Fibonacci placeholder at $0.4952. If this support level holds, XRP price could rise by 12% to retake the $0.5703 resistance level.

XRP/USDT 1-day chart

Conversely, if the $0.4952 support breaks, Ripple price could extend the decline to $0.4500, or in a disastrous case, extend its southward trend to 0.4188 $, levels last tested on April 13.

Read also: SEC v. Ripple Lawsuit Update: All Related Parties Must File Letters to Seal Motions and Evidence

FAQ Bitcoin, altcoins and stablecoins

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as currency. This payment method cannot be controlled by any person, group or entity, eliminating the need for third party participation during financial transactions.

Altcoins are any cryptocurrency besides Bitcoin, but some also consider Ethereum to be a non-altcoin because it is from these two cryptocurrencies that the fork occurs. If this is true, then Litecoin is the first altcoin, derived from the Bitcoin protocol and, therefore, an “enhanced” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset they represent. To achieve this, the value of a stablecoin is linked to a commodity or financial instrument, such as the United States dollar (USD), whose supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are prone to volatility.

Bitcoin dominance is the ratio of the market capitalization of Bitcoin to the total market capitalization of all cryptocurrencies combined. This gives a clear picture of the interest in Bitcoin among investors. Strong BTC dominance typically occurs before and during a bull run, during which investors resort to investing in relatively stable, high market cap cryptocurrencies like Bitcoin. A decline in BTC dominance usually means investors are moving their capital and/or profits into altcoins in search of higher returns, which usually triggers an explosion in altcoin rallies.

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