- Bitcoin trades below $94,000 on Monday after being rejected at a key resistance level on Friday.
- Ethereum slips near $1,861, with the correction threatening to extend into a broader bearish trend.
- XRP closes below its 50-day EMA at $2.20, raising the risk of a further drop toward $1.96.
Bitcoin (BTC) price hovers around $94,000 on Monday after Friday’s rejection at resistance. Ethereum (ETH) and Ripple (XRP) followed BTC’s footsteps and faced rejection from their key resistance levels last week, with the correction threatening to extend into a broader bearish trend.
Bitcoin declines as it faces rejection from its daily level at $97,700
Bitcoin price retested and was rejected around its daily resistance level of $97,700 on Friday. It then declined nearly 3% over the next two days. At the time of writing on Monday, it trades at around $94,000.
If BTC continues to correct, it could extend the decline to retest its next key support level at $90,000.
The Relative Strength Index (RSI) on the daily chart reads 60 after being rejected from its overbought level of 70 on Friday, indicating fading bullish momentum. If the RSI slips below its neutral level of 50, it would indicate a strong bearish momentum and a sharp fall in Bitcoin’s price.
BTC/USDT daily chart
However, if BTC recovers and breaks above its daily resistance at $97,700, it could extend the gains to retest its psychological resistance at $100,000.
Ethereum could correct further after retesting its daily resistance at $1,861
Ethereum price faced resistance around the daily level of $1,861 on Friday and declined 1.87% over the next two days. At the time of writing on Monday, it continues to trade down at around $1,795.
If ETH continues its pullback, it could extend the decline to retest its psychological importance at $1,700. A successful close below this level could extend the decline to test its next support level at $1,449.
The RSI on the daily chart reads 52, hovering around its neutral level of 50, indicating indecisiveness among traders. The RSI must move below its neutral level of 50 to sustain the bearish momentum.
ETH/USDT daily chart
Conversely, 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.
XRP shows weakness as it closes below its 50-day EMA
XRP price closed below its 50-day EMA level at $2.20 on Saturday and declined 2.26% until the next day. At the time of writing on Monday, it continues to trade down at around $2.14.
If XRP continues to decline, it could extend further drop toward $1.96.
The RSI on the daily chart reads 47, below its neutral level, indicating a bearish momentum.
XRP/USDT daily chart
On the other hand, if XRP breaks and closes above the $2.20 level, it will extend the rally to retest its March 24 high of $2.50 before potentially reaching $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.
