Bitcoin Remains Steady As RSI Reflects Uncertainty
Bitcoin’s (BTC) price remained stable at $87,000 on Friday, showing a phase of consolidation following a recent rise. Nevertheless, Ethereum (ETH) and Ripple’s XRP showed weakness since they faced resistance at key levels, causing their prices to fall.
BTC successfully broke its 200-day Exponential Moving Average (EMA) of $85,580 over Sunday, climbing 4.45% to Monday. However, BTC price lost some momentum and steadied at about $87,000 for the following three days. The crypto is now hovering slightly below a downward trendline that has been established since mid-January and serves as a resistance level.
Source: TradingView
The 200-day EMA continues to be a support level. If Bitcoin holds above this level and breaches the downtrend line, it can try to retest the psychological resistance of $90,000. A breach above this level could drive a further upsurge towards its March 2 high of $95,000.
Bitcoin’s Relative Strength Index (RSI) on the daily chart is 49, close to its neutral position of 50 since Monday, according to TradingView. This indicates that traders are not sure what to do next. A change in RSI above 50 would mean a revival of bullish momentum. Nonetheless, if BTC is rejected from the downtrend line and drops below the 200-day EMA, it could see a deeper correction toward the next support level at $78,258, as mentioned in our last news story.
Ethereum Undergoes Selling Pressure Below $2,000
Ether has been trying to sustain its bounce back after discovering support in the region of $1,861 for the last fortnight. After going up 7% last week, ETH continued its uptrend on Monday, closing above $2,081. However, selling pressure gained strength, causing it to lose 4% over the next three days. By Friday, ETH was below the $2,000 level, hinting at downside risks.
Source: TradingView
If Ethereum keeps falling along this path, it may go back to its support level at $1,861. Its daily RSI is currently 43 after it was rejected at the neutral 50 level, which is in line with bearish pressure in the market. Conversely, a bounce might propel ETH towards a retest of its high of $2,258 on March 7. It all depends on whether the Ethereum Pectra upgrade could garner enough interest to activate bullish momentum once again.
XRP Nears Crucial Support Level
XRP price had a significant rise last week, breaching its 100-day EMA at $2.32 and capturing a 7% increase. This was followed by a drop-off in the momentum as XRP moved into a period of correction on Tuesday, resulting in a decline by 5.74% by Thursday. The asset went on to decline on Friday, moving even nearer to the key 100-day EMA level at $2.31.
Source: TradingView
If XRP does not remain above this support, more losses might push it towards the next major support at $1.96. The RSI value of 46, having fallen below the middle or neutral 50 level earlier in the week, indicates that the bearishness is dominating. But if the 100-day EMA is able to serve as a support level, XRP might try to bounce back toward its next resistance at $2.72.