Why could BTC, ETH and XRP recovery be short-lived?

On February 3, 2025By Littum

Bitcoin Price hovering about $ 104,000 on Friday after jumping his 50-day EMA earlier this week.
Ethereum Price finds rejection of her falling trendline on Friday, suggesting a downturn in front.
Ripple Prize slides against its rising trendline support; A close below would lead to a further decline.

Bitcoin (BTC) Price hovering about $ 104,000 on Friday after jumping out of its 50-day exponential sliding average (EMA) of about 98,800 earlier this week. Ethereum (ETH) and Ripple (XRP) are approaching key resistance levels; If rejected, they could lead to a correction in front.

Bitcoin Price is ready for a downleg if it closes under the 50-day EMA

Bitcoin Price found support around his 50-day exponential sliding average (EMA) to $ 98,845 Monday and rose 2.69% on Thursday and closed over $ 104,700 that day. At the time of writing on Friday, it hovers around $ 104,100.

If BTC breaks below $ 100,000 and closes under the 50-day EMA on a daily basis, it can extend the decline and test its next key support around $ 90,000.

The relative strength index (RSI) indicator on the daily chart sounds 57, above its neutral level of 50, but points downwards, indicating signs of weakness in Bullish Momentum. In addition, the sliding average components (MACD) indicator converge, indicating indecision among the traders. If MACD lashes to a Bearish Crossover on a daily basis, it would provide a sales signal and suggest a downturn.

BTC/USDT DAILY CHART

However, if BTC continues to recover, the gene test was the 20th of January at all times at $ 109,588.

Ethereum Price is facing rejection around its falling trendline

Ethereum Price jumped out of his psychological meaning level of $ 3,000 Monday and rose 6.33% until Thursday. At the time of writing on Friday, it is facing rejection near its falling trendline and deals about $ 3,231.

If the falling trendline applies as resistance, it can extend the decline to gene test its psychological significance of $ 3,000. A successful close below this level would extend a further fall to test its next daily support of 2,810.

RSI on the daily chart sounds 46, after rejecting from its neutral level of 50 and downwards, indicating Bearish Momentum. Like Bitcoin, the MACD indicators also converge, suggesting indecision among the traders.

ETH/USDT DAILY CHART

Conversely, if eth breaks over the falling trendline, it could extend the recovery to test its daily resistance level to $ 3,730.

Ripel Price is due to a correction if it closes during its rising trendline

Ripple Price jumped out of his rising trendline (drawn by connecting more low lower since the beginning of January) about $ 2.72 Monday and rose 2.25% until Thursday. At the time of writing on Friday, it is a bit down about $ 3.07.

If Ripple breaks under the rising trendline and closes below $ 2.72, it may extend the fall to test its next daily support for $ 1.96.

The RSI indicator sounds 59, above its neutral value of 50 and points downwards after being rejected from its overbought level of 70, indicating weakness in Bullish Momentum. In addition, MacD turned a Bearish Crossover on Sunday, gave sales signals and hinted at a downward.

XRP/USDT DAILY CHART

On the other hand, if XRP continues its upward momentum, it can expand the rally to test its $ 3.40 resistance level.

Bitcoin, Altcoins, StableCecoins often asked questions

Bitcoin is the largest cryptocurrency at market value, a virtual currency designed to earn as money. This type of payment cannot be controlled by a person, group or unit that eliminates the need for third -party participation during financial transactions.

Altcoins are any cryptocurrency other than Bitcoin, but some also consider Ethereum as a non-altcoin because it is from these two cryptocurrencies that fork happens. If this is true, Litecoin is the first altcoin, fork from the Bitcoin protocol and therefore an “improved” version of it.

Stableecoins are cryptocurrencies designed to have a stable price, with their value supported by a reserve of the asset it represents. To achieve this, the value of a stableecoin is tied to a product or financial instrument, such as the US dollar (USD), with its supply regulated by an algorithm or demand. The main target of stableecoins is to provide an on/off ramp for investors who are willing to trade and invest in cryptocurrencies. Stableecoins also allow investors to save value as cryptocurrencies are generally subject to volatility.

Bitcoin dominance is the relationship between Bitcoin’s market value and the total market value of all cryptocurrencies combined. It gives a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull race where investors take to invest in relatively stable and high market value cryptocurrency like Bitcoin. A decrease in BTC dominance usually means that investors move their capital and/or profits to Altcoins in a quest for higher returns, which usually triggers an explosion of altcoin events.