Altcoin
Altcoins Tremble as BTC Hides Directional Bias
- Bitcoin price could reverse the current market structure if the bulls manage to close a stable candle above $65,500.
- Ethereum’s 26% price upside potential is in jeopardy as ETH tests support at $2,900.
- XRP offers another buying opportunity at $0.50 as Ripple price plummets nearly 10% in a week.
Bitcoin (BTC) continues to hide its hand on longer time frames with the position forcing altcoins to take a stand. Altcoins with bullish fundamentals continue to show short-term strength, while those without fundamentals continue to bleed. The fate of altcoins depends on BTC, and a display of stability could spark a rally for Ethereum (ETH) and Ripple (XRP) prices.
Read also: The cryptocurrency market expects a bullish trend reversal
Bitcoin price attempts a reversal of the market structure
Bitcoin price is trading in an uptrend on the H4 time frame, consolidating along an ascending trend line. The Relative Strength Index (RSI) has made some higher highs, suggesting a growing bullish trend.
However, for the current market structure to change, the bulls must be able to push BTC above $65,500 and maintain a stable level. candlestick above it at four o’clock graphic. Such a move would pave the way for an extension of the $72,797 threshold, beyond which the all-time high of $73,777 would be ripe for retaking.
BTC/USDT 4-hour chart
Conversely, if the bears prevail, Bitcoin price may collapse, slipping below the support confluence of the ascending trend line and the horizontal line at $60,630. In the dire case of BTC falling below the psychological level of $60,000, panic selling would be triggered. This could send Bitcoin price down to the $56,552 support level before a potential recovery.
Ethereum’s 26% price target may fail
Ethereum price consolidation within a descending wedge pattern continues as the bullish reversal technical formation signals a possible 26% target target. However, as BTC hides its directional bias, this potential weakens.
Notably, Ethereum price slipped below the ascending trend line, worsened by matching lows on the RSI. If the RSI support were to break, ETH could collapse, making a lower low and extending the downtrend below the $2,900 mark.
ETH/USDT daily chart
On the other hand, we could see more buyer momentum above current levels Ethereum price break above the $3,212 resistance level. A stable close above this level over the course of a day would trigger the breakout, potentially sending ETH 26% north to $4,083.
Read also: Ethereum May See Slight Rise, Institutional Whales Make Large Deposits on Coinbase.
XRP bulls have another buying opportunity
Ripple price tested the 50% Fibonacci placeholder for yet another time. But not all hope is lost as XRP tests support due to the 50% Fibonacci placeholder at $0.4952. If this support level holds, XRP price could rise by 12% to return to the $0.5703 resistance level.
XRP/USDT daily chart
Conversely, if the support at $0.4952 breaks, Ripple price could extend the fall to $0.4500 or, in extreme cases, extend a leg south to $0.4188, levels tested on last time on April 13th.
FAQs about Bitcoin, altcoins and stablecoins
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to act as money. This form of payment cannot be controlled by any 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 consider Ethereum as a non-altcoin because it is from these two cryptocurrencies that the fork occurs. 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 supported by a reserve of the asset it represents. To achieve this, the value of any stablecoin is pegged to a commodity or financial instrument, such as the United States dollar (USD), with its supply governed by an algorithm or demand. The main goal of stablecoins is to provide an on-ramp/exit ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value as cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of the market capitalization of Bitcoin to the total market capitalization of all cryptocurrencies combined. It gives a clear picture of Bitcoin’s appeal among investors. High BTC dominance typically occurs before and during a bull run, where investors resort to investing in relatively stable, high-market-cap cryptocurrencies like Bitcoin. A decline in BTC dominance usually means that investors are shifting their capital and/or profits to altcoins in search of higher returns, which usually triggers an explosion of altcoin rallies.