- Bitcoin price extends its gains on Friday after breaking above the key resistance level of $95,000 the previous day.
- Ethereum nears key resistance at $1,861; a decisive close above could pave the way for a bullish run.
- XRP stabilizes around its support level at $2.20, with recovery on the cards.
Bitcoin (BTC) price is extending its gains, trading above $97,000 at the time of writing on Friday after breaking above the key resistance level of $95,000 the previous day. Ethereum (ETH) approaches a key level of resistance, while Ripple (XRP) finds support around a significant level; a decisive close above these levels could pave the way for a bullish run.
Bitcoin’s decisive breakout above $95,000 could pave the way toward the $100,000 mark
Bitcoin price broke above its key resistance level of $95,000 on Thursday after consolidating around it for the past five days and reaching a high of $97,400. At the time of writing on Friday, it trades at around $97,000.
If BTC continues its upward momentum and closes above its daily resistance at $97,700, it could extend the gains to retest its psychological resistance at $100,000.
The Relative Strength Index (RSI) on the daily chart reads 70, hovering around its overbought level of 70. However, traders should be cautious as the chances of a pullback are high around the overbought level at 70. Another possibility is that the RSI will remain above the overbought levels and continue its price rally.
BTC/USDT daily chart
However, if BTC fails to close above $97,700, it could face a correction toward its next daily support at $95,000.
Ethereum nears its upper consolidating boundary at $1,861, a breakout suggests a rally
Ethereum price has been consolidating between $1,700 and $1,861 since last week. At the time of writing on Friday, it is nearing its upper consolidating boundary at $1,861.
If ETH breaks and closes above the daily resistance at $1,861, it could extend the rally to retest its psychological importance level at $2,000.
The RSI on the daily chart stands at 58, above its neutral level of 50, indicating bullish momentum.
ETH/USDT daily chart
Conversely, if ETH declines and closes below $1,700, it could extend the losses to retest its next daily support at $1,449.
XRP finds support around its 50-day EMA
XRP price retested and found support around its previously broken 50-day EMA level at $2.20 on Wednesday, stabilizing at this level the next day. At the time of writing on Friday, it continues to hold around this level.
If the support level at $2.20 holds, XRP will extend the rally to retest its March 24 high of $2.50 before potentially reaching $3.00.
The RSI on the daily chart reads 54 above its neutral level of 50, indicating bullish momentum.
XRP/USDT daily chart
On the other hand, if XRP fails to find support around the $2.20 level, it could extend the decline to retest its next support 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.
