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Bitcoin (BTC) price is leading the rest of the market north, sustaining an uptrend over the last week. Ethereum (ETH) as expected, is following on the heels of the king of crypto, while Ripple (XRP) price confronts a major obstacle.
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.
Bitcoin price has a big move on the cards
Bitcoin (BTC) price is trading with a bullish bias, although much remains to be said as it confronts a critical barrier at $27,500. However, momentum indicators suggest rising momentum, and if sustained, the flagship cryptocurrency could shatter this level, with the potential to extend into the $28,000 range.
Further north, and in a highly bullish case, Bitcoin price could rise to the supply zone at $29,367, confirming the uptrend above this supplier congestion zone.
The Relative Strength Index (RSI) is moving north, suggesting rising momentum, just like the Awesome Oscillator (AO) is flashing green to show bulls are leading the market.
BTC/USDT 1-day chart
Conversely, a rejection from the $27,500 level could catch longs off guard. This could send Bitcoin price south, with a forecasted target below the $26,640 range and into the foothold of the descending trendline.
In a dire case, the largest crypto by market capitalization could extend to the demand zone, confirming the downtrend below its mean threshold at $25,357, or worse, extrapolate lower in an attempted liquidity grab.
Also Read: Bitcoin punches above $27k, but analysts have bearish price predictions
Ethereum price is committed to BTC
Ethereum (ETH) price has mirrored Bitcoin’s price action for a long time now, with its strong correlation suggesting it will follow the king of crypto to its next move. As such, with the momentum RSI and AO indicators painting a bullish picture, ETH could breach the $1,682 level and extend north.
ETH/USDT 1-day chart
However, a closer look suggests an impending slump in Ethereum price, just like in the case of BTC with a lot of uncollected liquidity resting underneath. With this, the largest altcoin by market capitalization is likely to correct below the $1,552 support level before a sustainable move north.
Also Read: Ethereum Layer 2 networks BASE, zkSync Era make history, ETH bites the dust
Ripple price faces major roadblock
Ripple (XRP) price is confronting a major roadblock, presented by the supply zone marked by a red order block. Its mean threshold at around $0.5373 is the level to breach for a confirmed uptrend, which could pave the way for an extension to $0.6098, or higher, potentially reaching the $0.7000 psychological level.
XRP/USDT 1-day chart
On the other hand, a rejection from the supply zone or its mean threshold at $0.5373 is likely to send Ripple price toward the $0.4600 support level, or worse, plunge it back into the confines of the descending channel for a continued slump. A solid move below the midline of the channel at $0.4191 could mark the beginning of a new downtrend, considering it coincides with the last lower low of the previous uptrend.
Also Read: XRP is the next Bitcoin if we solve a multi-trillion-dollar problem, Ripple CEO Brad Garlinghouse
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