Cryptocurrency Market Update: Bitcoin, Ethereum, and Ripple Facing Downward Pressure
Currently, Bitcoin has stabilized around $97,400 after experiencing a nearly 5% decline in the last three days. In parallel, Ethereum and Ripple are encountering challenges in finding solid ground, exhibiting indications of possible further downtrends.
Bitcoin’s Vulnerability to Drop to $90,000
The recent price behavior of Bitcoin reflects a struggle to sustain upward movement. After touching a low of $91,231 earlier this week, the price briefly rallied to surpass $101,300 on Monday. As of Friday morning, Bitcoin is hovering around $97,000. Market analysts predict that sustained bearish sentiment could push Bitcoin to test the crucial level of $90,000.
Current technical indicators, like the Relative Strength Index (RSI) at 44, suggest a downtrend after rebounding from the neutral 50 mark earlier this week. The Moving Average Convergence Divergence (MACD) has also indicated a bearish crossover, raising concerns of further downward trends.
On the flip side, if Bitcoin finds strong support around $100,000, recovery attempts could pave the way for a retest of its previous high at $106,012 recorded on January 31.
Ethereum Struggles with Barrier at $3,000
Ethereum has met resistance around a significant descending trendline since February 1, resulting in a 13.87% decline and a breach below the pivotal $3,000 mark. Although briefly dipping to $2,125, it managed to bounce back to close at $2,879 by Monday. However, failure to maintain this recovery has led to a nearly 7% drop. Currently, Ethereum is trading close to $2,715.
If Ethereum closes below $2,359, analysts anticipate a potential reattempt at the subsequent weekly support level of $1,905. With the RSI at 33, near oversold conditions at 30, pointing to strong bearish momentum, and the MACD indicating continued bearish signals.
Yet, signs of a turnaround might prompt Ethereum to reclaim the $3,000 support level.
Ripple Indicates Further Decline Following Resistance Rejection
Ripple has encountered obstacles, slipping below its upward trendline and dropping by 10.35% to close beneath its 50-day exponential moving average (EMA) of $2.59. After falling to $1.77 earlier in the week, Ripple briefly recovered to close at $2.70 but met resistance at the daily level of $2.72, leading to an approximate 14% decline. Presently, Ripple is trading around $2.35.
If Ripple fails to hold above its daily support at $1.96, additional declines could steer the price towards the weekly support level at $1.40. Technical readings exhibit an RSI of 35, signaling a robust bearish trend nearing oversold conditions, with the MACD supporting this bearish sentiment.
Conclusion: Exercise Caution Amid Current Market Sentiment
In conclusion, Bitcoin, Ethereum, and Ripple are collectively navigating bearish movements, prompting a close watch on key support levels. Analysts caution that prolonged downward trajectories without substantial recovery efforts could result in notable corrections for these major cryptocurrencies. Investors are urged to stay vigilant as further declines have the potential to impact overall market sentiment significantly.
