– Bitcoin price has lost the 50-day SMA support and could fall 10% to $27,256 as volatility wanes.
– Ethereum price loses critical support, eyes 5% drop to $1,581 as momentum declines.
– Ripple price coils up for a possible 20% rally as XRP tests crucial support at $0.684.
Bitcoin (BTC) price takes the weight of a market devoid of volatility, displaying a rather dull price action on the daily timeframe.The outlook is similar for the Ethereum (ETH) price and Ripple (XRP) price, which continue to suffer from the effects of a declining
BTC.
Also Read:
US DOJ deliberates fraud charges against Binance, but concerns of implications to customers weigh over.
Meanwhile, Bitcoin volatility has neared its five-year low, suggesting a strong move may be imminent.Notably, the volatility of
https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-spike-as-microstrategys-saylor-may-increase-btc-holdings-after-750-million-stock-sale-202308020152 is even lower than that of gold at the moment.This is according to a report published by cryptocurrency research firm K33 on August 2.
— ProACE Capital (@ProACECapital)
[$BTC] [#Bitcoin]historical volatility nearing all time lows.
Big move coming.
Steady lads.
Be ready with more capital.
[#Crypto] [#cryptotrading] [#trading] [pic.twitter.com/QPJAuooiV5] [August 2, 2023]
According to Bloomberg analyst McGlone, such low volatility in Bitcoin could favor the bulls.
Bitcoin price could drop as volatility dwindles
Bitcoin (BTC) price was dropping at the time of writing, along with a 26% drop in its 24-hour trading volume.The move has seen BTC slide below the 50-day Simple Moving Average (SMA), flipping it back into a resistance level at $29,581 and finding the next support above the 100-day SMA at $28,492.
Trapped between these two moving averages, Bitcoin price shows a lack of volatility that could bode well for the bears.With overhead pressure building, BTC could head lower, breaching the 100-day SMA to tag the $27,256 support level, last tested on July 21.With the Relative Strength Index (RSI) heading south and the histograms of the Awesome Oscillator (AO) indicator in the negative, momentum was steadily dropping.
The flagship crypto could tag the 200-day SMA at $26,752 in a dire case.
Such a move would denote a 6% slump.
BTC/USDT 1-day chart
Conversely, new momentum from fresh bulls coukld catalyze a reversal, sending Bitcoin price back above the resistance confluence between the 50-day SMA and the horizontal line at $29,582.However, BTC must record a decisive daily candlestick close above the $31,462 range for a confirmed northbound move.
Also Read: Breaking:
Litecoin completes third halving event, block rewards slashed to 6.25 LTC
Ethereum price could fall 5%
Ethereum (
ETH) is taking cues from BTC, heading lower in market value after the support confluence between the 50- and 100-day SMAs at around $1,854 was lost.With the headwinds steadily growing, BTC could leap further south to pivot around the support confluence between the 200-day SMA and the horizontal line at $1,782.
The above move, bolstered by dropping momentum as indicated by the RSI and AO histograms turning red, tips the odds further in favor of bears, increasing the chances of a prolonged slump.
ETH/USDT 1-day chart
In the same way, buying by sidelined bulls could reverse the outlook for Ethereum price, pumping a 5% rally to $1,953.In a highly ambitious case, the uptrend could extend past the $2,023 hurdle, allowing Ethereum to reclaim highs recorded between April 14 and April 19.Such a move would constitute almost 15% growth above the current levels.
Also Read:
DeFi blue chips MKR, COMP are outliers in Bitcoin season, rally driven by fundamentals.
Ripple price could be ready for a breakout
Ripple (
XRP) price could be ready for a strong move as the XRP market achieves some level of stability.This comes after the remittance token’s price action has seen sell-side liquidity under the $0.684 support level.
The ensuing demand pressure could fuel a rally, possibly leading Ripple price to breach the July 19/20 highs of around $0.826.
The uptrend, constituting a potential 20% climb, could see XRP continue its uptrend.
With momentum indicators still in the positive zone, the RSI above 50, and the AO still promising, Ripple price bulls could save the token’s market value from an imminent downtrend.
XRP/USDT 1-day chart
Failure to find a U-turn around the $0.684 support level could see Ripple price extend toward the 50-, 100-, and in the extreme case, the 200-day SMA at $0.587, $0.531, and $0.478 levels, respectively.Such a move could wipe out gains from the July 13 rally, bringing back to life the bearish bias for the payments token.
Also Read:
If Ripple’s win is temporary, XRP price could crash to this level.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money.This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens.If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents.
To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand.The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies.
Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined.It provides a clear picture of Bitcoin’s interest among investors.A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin.A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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