The cryptocurrency markets encountered turbulence following the release of the U.S. Consumer Price Index (CPI) data, intensifying volatility within an already unstable environment. Despite its decentralized ethos, Bitcoin faced a downturn this week, closely tied to the U.S. market dynamics.
Experiencing a significant 4% decline overnight, Bitcoin concluded the day at $67,150 after bottoming out at $65,320. This setback in the leading cryptocurrency triggered a bearish sentiment throughout the altcoin market, resulting in a wave of sell-offs that liquidated $784 million in long positions, according to Coinglass data.
With the bearish sentiment gaining strength, the looming question is whether Bitcoin, Ethereum, and XRP will experience a downward trend in the coming week, or if the anticipation surrounding the Bitcoin Halving will spark a bullish resurgence.
Is $100,000 Merely a Fantasy for Bitcoin?
Amidst widespread market apprehension, the BTC price chart illustrates a significant bearish candle emerging from the upper trendline, testing the 50-day Exponential Moving Average (EMA) and indicating a minor correction within the bullish trend.
Despite the sell-off, Bitcoin maintains its position above the 23.60% Fibonacci retracement level, showcasing a notable demand for the cryptocurrency. As the Bitcoin Halving approaches, the likelihood of a bullish surge increases, potentially leading to a breakout rally and prolonging the current uptrend. Based on price levels and psychological barriers, Bitcoin could aim for the $100,000 milestone. However, in the short term, the forthcoming week may witness a bullish surge driving the BTC price towards $76,000.
Ethereum Faces Pressure as $3,000 Looms
With Bitcoin undergoing correction, the leading altcoin bears the brunt of heightened market supply. Nonetheless, Ethereum manages to sustain its position above the psychological threshold of $3,000, with indications of a lower price rejection in the long term.
This lower price rejection reflects a similar underlying demand as Bitcoin, thereby enhancing the likelihood of a reversal. Despite a 7.50% decline overnight, Ethereum’s price remains below the breached resistance trendline of an ascending channel, casting doubt on the reversal potential. However, the RSI divergence in Ethereum’s price trend strengthens the prospects of a reversal. Based on trend-based Fibonacci levels, Ethereum could target the $4,000 mark for a new breakout attempt.
Will XRP Awaken from Its Slumber This April?
Following substantial supply dumps in Bitcoin and Ethereum, altcoins like Ripple find themselves in a similar predicament. The XRP token’s price experienced a 10% decline, falling to $0.54.
This downturn tests the bullish dominance established by the ascending support trendline since early 2023. Despite the lack of significant momentum from dynamic resistance in the weekly timeframe, indicators such as RSI divergence and lower price rejection hint at a potential resurgence. If the highly anticipated altcoin season coincides with the Bitcoin Halving, XRP could surge this week to break the triangle pattern. According to trend-based Fibonacci levels, the $0.8966 level presents a suitable target for the triangle breakout rally.
What Lies Ahead for Bitcoin, Ethereum, and XRP Prices?
Despite the recent sell-off, Bitcoin and altcoins appear poised for a comeback in the upcoming week. The presence of lower price rejection, coupled with the prevailing uptrend and the impending Halving event, could propel the market to new heights. Consequently, the downturn presents an opportunity to acquire premier cryptocurrencies at discounted prices.
The technological aspects of cryptocurrencies.
While Bitcoin offers stability and potential for incremental growth, Ethereum provides a gateway to a rapidly evolving blockchain ecosystem with higher risk and potentially higher rewards.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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