The entire crypto market is bracing for a significant dip. Bitcoin, Ethereum, and XRP are all headed down as we approach the weekend. Given recent price action, it would be reasonable to assume a deeper correction is ahead for these assets. Bitcoin has not been able to regain its all-time high and is rolling over, and Ethereum can’t seem to find a bottom. XRP is confirmed to have closed below the important 50-week moving average, signalling a potential for a much deeper correction.
Bitcoin Faces Downward Pressure
Bitcoin's price has been under pressure recently. After a big Monday rally, it was forced to not retest its record high of 111,980. By the end of Wednesday, it had dropped some 10 percent. That bearish momentum has persisted, with the Bitcoin price dipping under the $104k mark on Friday morning after a 4% drop two days earlier in the week.
On Thursday, Bitcoin extended the correction continuing south closing under the daily demand level at $106,406. However, the Relative Strength Index (RSI) on the daily chart is a relatively neutral 47. This value is indicative of values below the neutral level of 50, indicating bearish momentum. If Bitcoin closes below 50-day Exponential Moving Average (EMA) at $102,447, then the fall may last further. This decline could bring Bitcoin back down to retest the psychologically significant mark of $100,000.
Should Bitcoin successfully hold its recovery, the latter may push the upswing to retest its daily resistance of $106,406. The upcoming days will prove crucial in deciding whether Bitcoin can establish support and turn around its recent bearish trajectory.
Ethereum Struggles to Maintain Support
Ethereum has been breaking down, unable to hold support near the top of the consolidation at $2,724. On Thursday, the price dropped by 4.65%, indicating an erosion of bullish movement momentum.
As of Friday morning, Ethereum was still trading down 3.5% from the last week at just over $2.11. Subsequent reports suggested that it had indeed traded down 6%, settling at the bottom of its current consolidation range at $2,461. These consecutive days of losses indicate that Ethereum is under heavy selling pressure.
With no major bullish momentum or clear foundation laid to halt the downtrend the short-term future does remain a bit worrisome for Ethereum. Now, investors will be hoping that Ethereum has found a bottom and the currency can push itself back into more profitable territory.
XRP Signals Potential Deeper Correction
These accruing legal expenses may have contributed to XRP showing signs of weakness. On Thursday, it closed below its level of its 50-day EMA ($2.25) and was in the red by 3.55%. This bearish move below the crucial 200-day moving average significantly raises the prospect of a deeper correction for XRP.
The 50-day EMA is one of the most closely followed indicators on the market and any close below it typically signals a change of character/momentum is afoot. If XRP decides to keep correcting, then it can stretch the downward movement and revisit XRP’s next daily support at $1.96.
1dRSI on the daily chart of the asset is showing 40. This value sits under the neutral line and indicates downwards moving strength, showing incredibly bullish bearish momentum. The next few days will be very important for XRP to start creating a support line and not fall again.
