- Bitcoin price hovers around $78,600 on Monday after falling nearly 5% the previous week.
- Ethereum price fails to find support around key levels and reaches levels not seen since 2023.
- XRP breaks below its support level at $1.96, targeting its yearly low.
Bitcoin (BTC) price hovers around $78,600 on Monday after falling nearly 5% the previous week. Ethereum (ETH) and Ripple (XRP) also followed in BTC’s footsteps and declined 13% and 10%, respectively, in the previous week. Bears remain strong as ETH reaches levels not seen since 2023 while BTC and XRP target their yearly lows.
Bitcoin bears aim for its yearly low of $76,606
Bitcoin’s price declined by almost 5% last week after being rejected from its key level of $85,000. On Sunday, it found support around $78,258. At the time of writing on Monday, it is hovering around that support level.
If BTC breaks and closes below $78,258, it could extend the decline to retest its yearly low of $76,606 ( March 11 low). A successful close below would extend an additional decline to test the next daily support level at $73,072.
The Relative Strength Index on the daily chart reads 37, below its neutral level of 50, indicating strong bearish momentum. The Moving Average Convergence Divergence (MACD) indicator also shows a bearish crossover on Sunday, giving sell signals and suggesting a downward trend.
BTC/USDT daily chart
However, if BTC finds support around the $78,258 level, it could extend the recovery to retest its daily resistance at $85,000.
Ethereum reaches levels not seen since October 2023
Ethereum price declined nearly 13% last week after failing to close above the daily level of $1,861. Moreover, on Sunday, it corrected to retest its important psychological level of $1,700, which it has not seen since October 2023. At the time of writing on Monday, it hovers around $1,575.
If ETH continues its downward spiral, it could extend the decline to retest its next daily support at $1,449.
The RSI reads at 27, below its oversold level of 30, indicating that Ethereum may be undervalued and could be due for a price recovery to the upside. However, the RSI could remain below the oversold level and continue its downward spiral. The MACD indicator also shows a bearish crossover on Sunday, giving sell signals and suggesting a downward trend.
ETH/USDT daily chart
Conversely, if ETH recovers, it could extend the recovery to retest its important psychological level of $1,700.
XRP bears targeting yearly low as it closes below $1.96 support
XRP’s price declined 10% the previous week and closed below its 200-day Exponential Moving Average (EMA) at $1.94, with its daily support level of $1.96 on Sunday. At the time of writing on Monday, it continues to trade down around $1.86.
If XRP continues its downward trend, it could extend the decline to test its February 3 daily low of $1.77, which is also the lowest level this year.
The RSI on the daily chart reads 33, below its neutral level of 50, like Bitcoin, indicating strong bearish momentum.
XRP/USDT daily chart
On the other hand, if XRP recovers, it could extend the recovery to test its daily level at $1.96.
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.
