Key Moments
- Bitcoin (BTC) retested a key Fibonacci resistance at $94,253 and is trading near $92,000, with technicals pointing to potential upside if resistance is cleared.
- Ethereum (ETH) moved above a descending trendline and is trading around its 50-day EMA at $3,315, with momentum indicators favoring further gains if it closes above this level.
- XRP is consolidating near $2.08 after bouncing from support at $1.96, with a possible move toward $2.35 if the bullish structure holds.
Broad Crypto Market Sees Renewed Buying Interest
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) are all showing renewed strength at the time of writing on Wednesday, as buying momentum returns across the cryptocurrency complex. BTC is approaching a key resistance zone that could unlock a new leg higher, ETH has pushed through a descending trendline, and XRP is trading comfortably above an important support level. Collectively, these signals point to the possibility of additional upside in the days ahead.
Bitcoin Targets Break Above Fibonacci Resistance
Bitcoin price staged a modest recovery over the weekend and has gained 2.34% so far this week. On Tuesday, BTC revisited the 61.80% Fibonacci retracement level at $94,253, derived from the April low at $74,508 to the all-time high of $126,199 set in October. At the time of writing on Wednesday, BTC is changing hands near $92,000.
Should BTC secure a daily close above the $94,253 resistance level, the move could open the door for an advance toward the next major resistance zone at $100,000.
The Relative Strength Index (RSI) on the daily chart is at 49, sitting just below the neutral 50 mark and indicating that bearish pressure is fading. For the positive momentum to be confirmed, the RSI would need to move decisively above the neutral level. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator registered a bullish crossover last week, which remains in place and underpins the constructive outlook.
If Bitcoin instead turns lower, a corrective phase could drive price back toward the next significant support at $85,569, which corresponds to the 78.60% Fibonacci retracement level.
| Asset | Key Level | Type | Value |
|---|---|---|---|
| BTC | Fibonacci retracement (61.80%) | Resistance | $94,253 |
| BTC | Fibonacci retracement (78.60%) | Support | $85,569 |
| BTC | Upside target | Resistance | $100,000 |
Ethereum Breaks Trendline and Trades Near 50-Day EMA
Ethereum price broke above a descending trendline on Tuesday, drawn by connecting multiple swing highs since October 7, and advanced 6.21% on the day. At the time of writing on Wednesday, ETH is fluctuating around its 50-day Exponential Moving Average (EMA) at $3,315.
A sustained close above the 50-day EMA at $3,315 would likely reinforce bullish sentiment and could pave the way for a move toward the next notable resistance level at $3,592.
The daily RSI stands at 57, comfortably above the neutral 50 threshold, signaling that bullish momentum is building. The MACD also posted a bullish crossover last week and continues to support the constructive setup.
If Ethereum fails to maintain its current momentum and comes under selling pressure, the decline could extend toward daily support located at $3,017.
| Asset | Indicator / Level | Type | Value |
|---|---|---|---|
| ETH | 50-day EMA | Pivot / Resistance | $3,315 |
| ETH | Next resistance | Upside target | $3,592 |
| ETH | Daily support | Support | $3,017 |
XRP Holds Above Support After Recent Bounce
XRP price established a floor at $1.96 on Sunday and climbed 3.66% over the following two days. At the time of writing on Wednesday, the token is trading around $2.08.
If the current upward trajectory remains intact, XRP could continue its advance toward the next daily resistance level at $2.35.
The RSI on the daily timeframe is at 45, close to the neutral 50 mark, reflecting waning bearish momentum. For bullish forces to take firm control, the RSI would need to rise above the neutral zone. The MACD, which recorded a bullish crossover last week, still supports the case for further gains.
Conversely, if XRP comes under selling pressure, the price could retreat back toward daily support around $1.96.
| Asset | Key Level | Type | Value |
|---|---|---|---|
| XRP | Daily support | Support | $1.96 |
| XRP | Current area | Spot level (approx.) | $2.08 |
| XRP | Next daily resistance | Resistance | $2.35 |
Key Crypto Definitions and Market Structure
What is Bitcoin?
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.
What are altcoins?
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.
What are stablecoins?
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.
What is Bitcoin Dominance?
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.
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