- Bitcoin price rebounds to $97,000 after hitting a low of $90,500 following the $100K milestone touched the previous day.
- Ethereum price holds above the weekly level of $3,454, suggesting a rally toward $4,000.
- Ripple price faced rejection from the $3 mark, indicating a deeper correction ahead.
Bitcoin (BTC) rebounds to $97,000 on Friday after a volatile drop to $90,500, following its $100K milestone the day before. Ethereum (ETH) maintains bullish momentum above key support levels, signaling a potential rally toward $4,000. In contrast, Ripple (XRP) exhibits bearish tendencies, hinting at further declines.
Bitcoin shows signs of volatility post $100K milestone
Bitcoin price surged past the six-figure price milestone, reaching a high of $104,088, then fell sharply to make a daily low of $90,500 but recovered and closed above $96,900 on Thurday. At the time of writing on Friday, it hovers around $97,800.
The Relative Strength Index (RSI) on the daily chart reads 64, rejected for its overbought level of 70, indicating weak bullish momentum.
If BTC continues to decline, it could extend the correction to retest its $90,000 support level.
BTC/USDT daily chart
However, if BTC continues its upward momentum, it could rally to reach its new all-time high (ATH) level of $104,088.
Ethereum bulls eye the $4,000 mark
Ethereum price retested and found support around the weekly level of $3,454 on Tuesday. It rallied 4.6% in the next two days. As of Friday, it trades slightly above $3,870.
If the $3,454 level holds, ETH could extend the rally to retest the psychologically important $4,000 level.
The RSI indicator on the daily chart reads at 70, above its neutral level of 50 and points upwards, indicating that bullish momentum is gaining traction.
ETH/USDT daily chart
Conversely, if ETH declines and closes below the $3,454 level, it could face a pullback to retest the $3,335 support level.
Ripple bulls show signs of exhaustion
Ripple price surged more than 18% on Monday and extended the gains on Tuesday, reaching a new six-year high of $2.90. It then declined 17.6% until Thursday. At the time of writing on Friday, it trades slightly higher, around $2.31.
If XRP continues its decline, it could extend the decline to retest the $1.96 support level.
The momentum indicator supports Ripple’s correction. The RSI stands at 72, signaling overbought conditions and suggesting an increasing risk of a correction. The RSI’s move out of overbought territory could signify a pullback.
XRP/USDT daily chart
However, If XRP continues to recover, it could extend the recovery to retest its psychologically important level of $3.00.
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.
