Altcoins
Wave of Relief on Altcoins Likely as BTC Posts $5,000 Range
- Bitcoin price could fall into the liquidity pool between $60,600 and $59,005 as it establishes weekly resistance at $65,600.
- Ethereum price could confirm a downtrend with a 25% rise above $3,406 at the breakout point.
- Ripple price defends $0.5000, but continued bearish activity will keep XRP holders’ vision for $0.6000 a hopium pipe dream.
Bitcoin (BTC) price has recorded lower highs over the past seven days, with a similar outlook seen among altcoins. Meanwhile, even though altcoins are showing a rather ominous outlook amid broader market hemorrhaging, there could soon be some relief as the fundamentals show:
- A great chill in euphoria and feeling
A cooling phase allows the market to correct itself, stabilize and establish a more sustainable growth trajectory.
- Good outlook for financing rates
Healthy financing rates indicate a well-functioning and balanced market ecosystem, promoting stability, reducing the risk of manipulation, and fostering trust among market participants.
- Overleveraged short positions await liquidation
Although the initial liquidation of overleveraged short positions can cause short-term volatility, the final impact can often be positive for an asset’s price.
Learn more: Week Ahead: Bitcoin Could Surprise Investors This Week
Bitcoin Price Forms $5,000 Range
After successive weekly closes below $65,600 and as bulls defend against a fall below $60,000, Bitcoin price has established a macro market range of $5,000. Odds suggest a further decline as the Relative Strength Index (RSI) is moderate below the average level of 50 and the Awesome Oscillator (AO) indicator continues to show red histograms in negative territory.
If seller momentum increases and Bitcoin price falls liquidity pool between $60,600 and the March 5 intraday low at $59,005, the downtrend could continue with bulls waiting to buy BTC just above the psychological level of $50,000.
BTC/USDT 1-day chart
Conversely, if history repeats itself, Bitcoin the price could move in the opposite direction to that of the DXY Compare indicator. However, to confirm the continuation of the uptrend, bulls need to take BTC above $72,000 as many bearish activities await BTC price near the $70,000 threshold.
Read also: Bitcoin Price Outlook: Will BTC Ignore Major Macroeconomic Market Developments This Week?
Ethereum price could increase by 25%, pending confirmation
Ethereum the price is trading with a bearish bias, but not for long as the price action since March 12 has consolidated into a descending wedge pattern. The execution of this bullish reversal technical formation will occur after a decisive breakout above the upper trendline on a one-day time frame.
The target objective for this pattern is a 25% move toward $4,250, determined by measuring the health of the wedge and overlaying it with the expected breakout point.
The Relative Strength Index (RSI) continues to hover around the average level of 50, while the AO indicator shows increasing bullish sentiment displayed by the green histograms heading towards positive territory.
The highest highs observed on the RSI chart since mid-April, compared to the lowest highs in ETH price, also support the bullish thesis, suggesting a bullish divergence. If the RSI swings above the average level, it would further tip the scales in favor of a bullish breakout.
ETH/USDT 1-day chart
On the other hand, if the ETH bears are successful and book profits for the nearly 10% gains made since the Ethereum price rebounded from the $2,900 support, the market would see a surge. correction. A candlestick closing below $2,900 would invalidate the bullish thesis.
Read also: Ethereum Fees Fall to Lowest Since October, ETH Holds Above $3,200
Ripple price bears the brunt of persistent bearish pressure
Ripple The downside potential remains very present with bearish activity waiting to drop on the XRP price once it rises. This can be seen with the multiple peaks on the volume profile (gray) in the one-day chart below. The RSI is also in a steady decline, showing declining momentum.
This, coupled with the red bars of the histogram which remain in negative territory, reinforces the bearish outlook. If the psychological support of $0.5000 is lost, Ripple price could fall to the $0.4500 threshold, or in a disastrous case, extend the fall to the bottom of the market range at 0.4188 $, almost 20% below current levels.
XRP/USDT 1-day chart
On the other hand, if XRP bulls appear, Ripple price could rebound. However, for the bearish thesis to be invalidated, the price must register a candlestick close above $0.6500. Indeed, massive bearish activity awaits the payment token in the area surrounding $0.6000 as XRP bears wait to cash out.
Read also: XRP Slides to $0.50 as ETHgate Controversy Resurfaces, Ripple CTO Debates Impact on Litigation
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 except 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 shifting their capital and/or profits to altcoins in search of higher returns, which usually triggers an explosion in altcoin rallies.