- Bitcoin price could fall below $60,000 ahead of BTC halving date amid elevated market risk.
- Ethereum price generates a bullish reversal towards $4,000 depending on how the BTC bulls play their part.
- Ripple price could re-reach weekend lows below $0.4500 amid increasing overall pressure.
Bitcoin (BTC) price has the widest cryptocurrency market in standby, waiting for a definitive directional bias. As is the case with most altcoins, Ethereum (ETH) and Ripple (XRP) are in the red due to the chaos in the Middle East between Iran and Israel.
Geopolitical tensions between the two countries have markets in risk aversion mode. For example, bitcoin price fell to $62,000 on Saturday when reports confirmed that Iran had launched dozens of drones into Israel. However, following reports from Iran's United Nations (UN) Mission that the country's retaliatory attack on Israel was "considered complete," Bitcoin price rebounded above $65,000 on Sunday.
I know a guy who sold all his Bitcoin at $61,666 because Iran was apparently "very serious" about destroying Israel this time and that global nuclear war was "inevitable." Now you are in a state of panic because BTC has recovered to $65,000 and you don't know what to do. Scary.
- Mike Alfred (@mikealfred) April 13, 2024
As noted in a previous report, cryptocurrency markets are dumping due to a general atmosphere of fear and risk aversion in financial markets. Investors are looking to liquidate their positions to reduce risk and move towards more traditional safe-haven assets such as gold and gold. Silver.
However, the market has BTC's halving in sight, in just five days with approximately 642 blocks remaining.
Also read: Bitcoin price drops to $62,000 attributed to geopolitical tension a week over BTC halving
Bitcoin price could reach $60,000 again
Bitcoin's downward price momentum could have more influence ahead of the halving. The pioneering crypto remains below the crucial support provided by the ascending trend line after falling below three days ago. Stuck in the lower section of the market range between $61,970 and $73,122, where selling pressure climaxed and buying pressure peaked respectively, the odds favor the bears.
To begin with, the Relative Strength Index (RSI) is below the mid-'50' level with an overall tilt towards the south. This, along with the position of both the Awesome Oscillator (AO) and the moving average convergence and divergence (MACD) in negative territory, reinforced the bearish outlook.
While the $61,970 base is likely to be retested, the severe case could see Bitcoin price drop to the psychological $60,000 level before a pullback.
BTC/USDT 1-day chart
On the other hand, a show of force by BTC bulls could see Bitcoin price recover above the uptrend line, confirmed by a 50% reversal. Fibonacci placeholder on support above $67,546. This could attract more bulls to the scene, sending BTC price above the $69,000 threshold. In a highly bullish case, BTC could reclaim the all-time high of $73,777 before attempting a further rise.
Also read: Bitcoin Price Fails to Reach $67,000 Despite Hong Kong BTC and ETH Spot ETF Approvals
Ethereum Price Sparks Bullish Reversal, But BTC Won't Let This Happen
Ethereum price is consolidating within a falling wedge, which is a bullish reversal pattern. Depending on whether BTC shows strength or falls further, ETH price could respond in the same way. A show of force could drive up the price of Ethereum. A violation of the government's upper limit chart A pattern above the $3,750 level would signal the opening of a long position.
ETH/USDT 1-day chart
On the contrary, with the overall market still in the red, Ethereum price could continue the decline below the 100-day SMA at $3,023. A candle close below $2,750 would invalidate the bullish thesis.
Also read: Ethereum whales surge in price as Hong Kong approves ETH spot ETF
Next Ripple Price Move Depends on RSI Bounce
Ripple price could see further downside momentum amid increasing overall pressure due to the 50-day, 100-day, and 200-day simple moving averages (SMA) at $0.6094, $0.5754, and $0.5837 , respectively.
With the RSI well below 50 and the MACD and AO in negative territory, the price of XRP could fall to $0.4500. Worse still, it could establish a lower low below the April 13 low, marking the psychological level of $0.4000.
XRP/USDT 1-day chart
On the other hand, traders buying the correction could bode well for Ripple price. While a move above the psychological level of $0.6000 would be ideal, the bearish thesis would only be invalidated if the candle closed above $0.6685. Traders should watch for the RSI to bounce above the 30 threshold for possible entry.
Also read: XRP Recovers from Massive Weekend Drop After Developers Propose Native Lending on XRP Ledger
Frequently asked questions about Bitcoin, altcoins and stablecoins
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 person, group or entity, eliminating the need for third-party involvement during financial transactions.
Altcoins are any cryptocurrency other than Bitcoin, but some also consider Ethereum a non-altcoin because it is from these two cryptocurrencies that it forks. 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 backed by a reserve of the asset they represent. To achieve this, the value of any stablecoin is pegged to a commodity or financial instrument, such as the US dollar (USD), and its supply is regulated by an algorithm or demand. The main goal of stablecoins is to provide an entry and exit route 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 between the market capitalization of Bitcoin and the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin interest among investors. High BTC dominance typically occurs before and during a bull run, where investors turn to investing in relatively stable, high market cap cryptocurrencies like Bitcoin. A drop in BTC dominance usually means that investors are shifting their capital and/or profits into altcoins in a search for higher returns, which usually triggers an explosion of altcoin rallies.
