Bitcoin (BTC) hovered around $95,700 on Wednesday, indicating potential weakness as technical indicators showed a downward trend, while Ethereum (ETH) and Ripple (XRP) stabilized near key levels, suggesting a possible rebound after South Korea lifted its lockdown.
Bitcoin bulls show signs of weakening.
Bitcoin's price dropped 1.38% at the beginning of the week, hitting a low of $93,578 on Tuesday, but then rebounded and closed above $95,800. As of Wednesday, Bitcoin's price hovers around $95,700.
If BTC continues to decline, it may extend the correction period to retest its support level at $90,000.
The momentum indicators support the correction argument for Bitcoin. The relative strength index (RSI) on the daily chart is at 62, below the overbought level of 70, and pointing downwards, indicating weaker bullish momentum. Additionally, the moving average convergence divergence (MACD) indicator also shows a bearish crossover, producing a sell signal. The MACD also shows an increasing red histogram bar below the neutral line, indicating that Bitcoin's price may experience downward momentum.
However, if BTC continues its upward momentum, it may rebound to its historical high (ATH) of $99,588.
Ethereum is expected to rebound as it gains support near the weekly line.
Ethereum's price retested and found support near the weekly line of $3,454 on Tuesday. As of Wednesday, it was trading slightly above $3,670.
If it maintains the level of $3,454, ETH may continue its upward trend and retest the important psychological level of $4,000.
The RSI indicator on the daily chart is at 66, above the neutral level of 50, and pointing upwards, indicating that bullish momentum is gaining strength well below overbought conditions.
On the other hand, if ETH drops and closes below $3,454, it may face a correction and retest the support level at $3,335.
Ripple targets the $3.00 mark.
Ripple's price surged over 18% on Monday, continued its upward trend on Tuesday, reaching a six-year high of $2.90, and then dropped 7.8%. As of Wednesday, Ripple was trading slightly higher at about $2.55.
If XRP continues its upward trend, it may extend its momentum and retest its important psychological level of $3.00. However, the RSI is at 83, indicating overbought conditions and suggesting an increased risk of a correction. A move away from the overbought zone in the RSI may signal a potential correction.
If XRP fails to maintain its upward momentum and faces a correction, it may drop and retest its support level at $1.96.
