- Bitcoin surges past its challenging $62,000 threshold, setting the stage for a potential upward trend.
- Ethereum eyes a significant breakthrough as it approaches a vital resistance near $2,500, with promising gains if surpassed.
- Ripple encounters its resistance near $0.554, facing potential decline if unable to breach this level.
Bitcoin (BTC) has impressively surpassed its crucial $62,000 resistance level, indicating a possible rally. Meanwhile, Ethereum (ETH) teeters near the critical $2,500 resistance, with potential for substantial gains upon a sustained close above this mark. Contrastingly, Ripple (XRP) approaches its resistance level, where failure to break through could imply further downward movement.
Bitcoin breaches resistance, paving way for a potential rally
Bitcoin found support at the 200-day Exponential Moving Average (EMA), around $60,000, on October 2. After this, it climbed 3.5% over the next four days, breaking above the $62,125 resistance. As of Monday, Bitcoin trades above $63,600.
If the $62,125 level maintains as a support, Bitcoin could push higher, potentially retesting the psychological mark of $66,000.
The Relative Strength Index (RSI) on the daily chart charts at 56, indicating that bullish momentum prevails as it sits above the neutral 50 mark.
BTC/USDT daily chart
Nevertheless, if the $62,125 level doesn’t hold, Bitcoin might revisit its former support around the $60,000 mark, retesting the 200-day EMA.
Ethereum poised for gains if resistance is surpassed
On Monday, Ethereum is approaching its significant daily resistance level near $2,461. This resistance coincides with the 50% retracement point at $2,487 and aligns with the 50-day EMA at $2,557, forming a decisive resistance zone.
Should Ethereum break and secure a close above $2,557, it might continue its ascent to challenge the August 25 high of $2,820 once again.
The RSI approaches its neutral level of 50, which signals a sense of market indecisiveness. For Ethereum’s potential rise, a breach above this neutral RSI level is essential for ongoing momentum.
ETH/USDT daily chart
Alternatively, failure to break and sustain above $2,461 might result in Ethereum declining to revisit its September 6 low of $2,155.
Ripple faces crucial resistance challenge
Ripple recently dipped below its 200-day EMA of about $0.554, with daily support around $0.544 on October 2. It also dropped beneath its ascending trendline. On Monday, it’s trading near $0.540, gearing up to challenge these resistance levels.
Should the 200-day EMA at $0.554, the daily resistance at $0.544, and the ascending trendline hold firm, Ripple may decline towards its September 6 low at $0.502.
The daily RSI is below the neutral 50 mark, hinting at a bearish trend and a possible continuation of Ripple’s downward movement.
XRP/USDT daily chart
Conversely, if Ripple surpasses and closes over the $0.554 milestone, it could rise further to test the next resistance at $0.626.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the leading cryptocurrency by market capitalization, conceived as a digital currency to function as money. Its decentralized nature means no individual person, organization, or authority governs it, enabling peer-to-peer transactions without third-party involvement.
Altcoins refer to any cryptocurrency other than Bitcoin. Notably, Ethereum is often seen as distinct from altcoins, given its pivotal role from which many ‘fork’ occur. Litecoin, for instance, is considered the first altcoin, born from Bitcoin’s protocol as a purportedly enhanced version.
Stablecoins are a category of cryptocurrency designed to maintain a steady value, pegged to reserve assets like the US Dollar (USD). Their supply is usually monitored by algorithms or in response to demand, making them a secure gateway for crypto investors while mitigating the volatility associated with digital currencies.
Bitcoin dominance measures its market cap share over the total crypto market cap. A high dominance level is often seen before or during Bitcoin bull runs as investors lean toward Bitcoin’s stability and substantial market capitalization, while declining dominance suggests a shift toward altcoins in pursuit of higher returns, often sparking altcoin rallies.
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