Altcoins Saved as BTC Acts on CPI Data

• Bitcoin price could lead to a shift in market structure towards further upside if BTC remains stable above $65,500.
• Ethereum defends $2,900, but 26% upside potential will only be activated after surpassing $3,212.
• Ripple price RSI needs to register a stable high above the average level of 50 for XRP to become attractive.

Bitcoin (BTC) price rescued altcoins on Wednesday following US inflation data, which was measured by determining the change in the Consumer Price Index (CPI). Like the core CPI, the CPI was down compared to previous months, at 3.4%.

Markets like this so far, with yields falling along with the US Dollar (USD). Cryptocurrency assets have been surging, meaning the data release has been a much-needed catalyst.

Read also: Bitcoin price reestablishes early May highs as US CPI surprises on the downside

Bitcoin price is a fraction away from changing market structure

Bitcoin Price is trading with a bullish bias, sliding along an ascending trendline with higher highs. After a streak of lower highs, BTC could change the market structure if it achieves a stable close above the $65,500 resistance level.

This is likely, provided BTC holders keep their profit appetite in check and buyer momentum increases. The higher lows of the Relative Strength Index (RSI) show an increasing uptrend. Traders looking to take long positions in BTC may consider waiting for a higher RSI reading.

A stable close above $65,500 over a one-day period would encourage more buy orders, with the resulting buying pressure sending the Bitcoin price to $70,000. Beyond this level, BTC would have a chance to retake the $73,777 peak. Notably, the DXY Compare indicator is also falling, which has often displayed a counter-trend flow to BTC price.

BTC/USDT 1-day chart

Conversely, if traders take profits for the Wednesday divine candle, the price of Bitcoin could fall. A move below $63,354 would spook sellers, as was the case on two recent occasions, on May 9 and 13, where BTC was rejected from the aforementioned level.

In a disastrous case, Bitcoin price could move below the ascending trendline and ultimately fall below the $60,630 support level. Below this level, BTC could reach $58,000, or worse, $56,552, levels last tested on May 1.

Read also: Will the resurgence in GameStop stock have a downstream effect on BTC and alts?

The $3,212 Level Is Critical for Ethereum Price Upside Potential

Ethereum price is attempting to regain ground above the ascending trendline after falling below it on Tuesday. The government chart The pattern is a descending wedge, which is a technical bullish reversal formation. However, for the target goal of 26% to be achieved, ETH must manage a candlestick close above $3,212.

ETH/USDT 1-day chart

On the other hand, increased seller dynamics could lead to Ethereum Price drop. If the decline extends to close below $2,781, it would invalidate the bullish thesis.

Notably, the RSI continues to fluctuate sideways with equal lows while it remains moderate below the average level of 50. This shows that the bears still have the upper hand.

Read also: Ethereum faces key resistance in attempted near-term bull run, Solana topples ETH mainnet in revenue

XRP bulls stand idly by

Ripple price remains range-bound as XRP bulls continue to sit idly by. This is seen with the RSI stuck below the average level of 50 since April 11. If the RSI records a higher high at the upper end of the range, Ripple price could extend the rise.

In the meantime, Ripple price is expected to consolidate around 50%. Fibonacci placeholder of $0.4952, with the horizontal cut likely to continue.

XRP/USDT 1-day chart

Conversely, better earnings consideration could see Ripple price clear the covered ground, falling below $0.4952. In a dire case, XRP price could extend the decline to $0.4500, or worse, drop to $0.4188, levels last tested on April 13.

Read also: XRP holds gains as lawyers debate appropriateness of discounts offered to Ripple’s institutional clients

FAQ Bitcoin, altcoins and stablecoins

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as currency. This payment method cannot be controlled by any person, group or entity, eliminating the need for third party participation during financial transactions.

Altcoins are any cryptocurrency except Bitcoin, but some also consider Ethereum to be a non-altcoin because it is from these two cryptocurrencies that the fork occurs. If this is true, then Litecoin is the first altcoin, derived from the Bitcoin protocol and, therefore, an “enhanced” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset they represent. To achieve this, the value of a stablecoin is linked to a commodity or financial instrument, such as the United States dollar (USD), whose supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are prone to volatility.

Bitcoin dominance is the ratio of the market capitalization of Bitcoin to the total market capitalization of all cryptocurrencies combined. This gives a clear picture of the interest in Bitcoin among investors. Strong BTC dominance typically occurs before and during a bull run, during which investors resort to investing in relatively stable, high market cap cryptocurrencies like Bitcoin. A decline in BTC dominance usually means investors are moving their capital and/or profits into altcoins in search of higher returns, which usually triggers an explosion in altcoin rallies.

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