- On Wednesday, Bitcoin’s price is steady at approximately $76,200 after a 3.59% drop the day before.
- The price of Ethereum shows continued weakness, dipping below the $1,400 mark.
- XRP has fallen beneath its support level of $1.96, indicating a potential correction is on the horizon.
On Wednesday, Bitcoin (BTC) is trading around $76,200, following a 3.59% decline the previous day. Ethereum (ETH) and Ripple (XRP) are also experiencing declines, paralleling BTC’s trend. Technical indicators suggest a potential correction, with targets of $73,000 for BTC, $1,300 for ETH, and $1.30 for XRP.
Bears in Bitcoin gain traction as they set sights on the $73,000 mark
After being rejected by the resistance level of $85,000 on April 2, Bitcoin’s price has decreased by 10.55% through Tuesday, reaching a yearly low of $74,508 on Monday. As of writing on Wednesday, it remains around $76,000.
Should BTC maintain its downward trajectory, it may test its next support level at $73,072.
The Relative Strength Index (RSI) on the daily chart is approximately 33, indicating significant bearish momentum that supports the negative outlook.
BTC/USDT daily chart
However, if BTC rebounds and closes above the resistance level at $85,000, it could extend its recovery rally towards the key psychological level of $90,000.
Ethereum’s downward trend continues, with eyes on the $1,300 level
Ethereum’s price fell nearly 13% last week after failing to surpass the daily resistance of $1,861. This week, the trend persists with ETH declining an additional 7% until Tuesday. As of Wednesday, it has dropped below the daily support level of $1,449, reaching lows not observed since October 2023.
If ETH closes below its daily support level of $1,449, it may continue to decline toward the significant psychological level of $1,300.
The RSI is currently at 23, below the oversold threshold of 30, indicating Ethereum may be undervalued, potentially setting the stage for a recovery to the upside. Nonetheless, the RSI might remain below the oversold level and continue its descent.
ETH/USDT daily chart
On the other hand, should ETH recover, it might reach back towards the important psychological level of $1,700.
XRP’s bearish trend targets the $1.30 mark
XRP faced rejection at its 200-day Exponential Moving Average (EMA) of $1.94 on Monday, leading to a 6.5% decline by the following day. Additionally, XRP has reached a new yearly low of $1.61 this week. Currently, on Wednesday, it is trading around $1.77.
If XRP maintains its downward movement and closes under $1.77, it may revisit the yearly low of $1.61. A successful breach below this level could trigger further declines toward the weekly support level of $1.30.
The RSI on the daily chart reads 30, nearing the oversold mark, indicating strong bearish momentum that reinforces the negative outlook. If the RSI drops below the oversold level, XRP might be undervalued and can see a price recovery. However, it may also continue its downward trend.
XRP/USDT daily chart
If XRP bounces back, it could potentially retest its daily resistance level at $1.96.
Frequently Asked Questions about Bitcoin, Altcoins, and Stablecoins
Bitcoin is the leading cryptocurrency by market cap, designed as a digital currency that functions independently of any central authority. This decentralized nature eliminates the need for third-party involvement in financial transactions.
Altcoins refer to any cryptocurrency other than Bitcoin. Some consider Ethereum a non-altcoin because it is one of the original cryptocurrencies from which forks arise. If so, Litecoin is regarded as the first altcoin created from the Bitcoin protocol, viewed as an “enhanced” version of Bitcoin.
Stablecoins are designed to maintain a stable value, with their worth backed by reserves of the assets they represent. They are pegged to commodities or financial instruments, such as the US Dollar (USD), with regulated supply based on algorithms or demand. The goal of stablecoins is to provide a stable entry and exit point for those trading or investing in cryptocurrencies while allowing value storage amid the volatility of typical cryptocurrencies.
Bitcoin dominance refers to the percentage of Bitcoin’s market capitalization relative to the total market capitalization of all cryptocurrencies combined. This metric indicates Bitcoin’s appeal among investors. High BTC dominance is typically seen before and during bull markets, as investors often gravitate towards more stable cryptocurrencies with larger market caps like Bitcoin. Conversely, a drop in BTC dominance suggests a shift of investor funds towards altcoins for higher returns, often triggering significant altcoin rallies.
