The cryptocurrency market has been witnessing a bearish trend in recent days, with top altcoins mirroring the negative sentiment. Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), the leading tokens, have all experienced significant corrections, raising concerns about their short-term outlook.
Bitcoin (BTC) : Bullish Long-Term, Bearish Short-Term
Despite the recent slump, Bitcoin price action remains confined within a range of $67,775 and $73,750. While this indicates a lack of momentum, BTC boasts a 10.34% gain over the past month and a staggering 64.20% YTD return, hinting at a positive long-term trajectory. However, technical indicators suggest a potential bearish crossover on the 1-day chart, signaling a possible price decline. The flat MACD line further reinforces this notion, highlighting mixed sentiment. Reclaiming the $67,775 support level is crucial for bulls to regain control and aim for a retest of the all-time high (ATH). Conversely, a breach could send Bitcoin towards the $60,000 support zone.
Ethereum (ETH) Loses Grip on $3.7K Support
Ethereum, after holding above $3,730 for weeks, succumbed to the bearish pressure, dropping 3.5% in the last day and 2.26% over the past week. The Relative Strength Index (RSI) dipped sharply from the overbought territory, reflecting a decline in buying pressure. The downward sloping average on the chart paints a bearish picture for ETH in the near future. Retaking the $3,730 resistance level is essential for the bulls to target $4,100. Failure to do so might see Ethereum test its monthly low of $3,400.
Ripple (XRP) Teeters on the Brink
Ripple’s XRP token has been the weakest performer among the three, exhibiting a continuous downtrend. The price has fallen by 4.28% in a single day and 3.71% over the week, extending its monthly losses to 4.12%. YTD, XRP is down a significant 20.64%. The RSI plunged towards the oversold zone, indicating heavy selling pressure. The bearish MACD convergence amplifies the negative outlook for XRP. If the bulls manage a comeback, XRP could aim for $0.5340 resistance. Otherwise, a breakdown below the crucial $0.480 support level seems inevitable.
Future Outlook: Bullish Reversal or Extended Bear Run?
While the current market sentiment leans bearish, predictions suggest a potential bullish reversal in the coming weeks. Bitcoin is expected to spearhead this rally, possibly reaching a new ATH. This positive momentum could influence Ethereum and Ripple, leading to similar price surges and significant portfolio growth. However, investors should exercise caution and closely monitor market movements before making any investment decisions.
Also Read: $237 Million Gamble: Arbitrum’s Play For Blockchain Gaming Dominance Sparks Community Friction
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
