- Bitcoin hovers near its all-time high at $106,400, while Ethereum and XRP hold key support levels, hinting at potential rebounds.
- Traders remain cautious as momentum indicators show both bullish strength and warning signs of possible pullbacks.
The cryptocurrency market is bracing for potential breakout moves as Bitcoin inches closer to its all-time high, while Ethereum and Ripple battle to hold key support levels. Traders are watching closely as momentum builds across the top three digital assets.
Bitcoin Inches Toward Record Territory
Bitcoin (BTC) is trading at approximately $106,400 as of Wednesday, just 3% shy of its historic peak of $109,588 reached in January. The digital asset surged past its $105,000 resistance over the weekend and has since held that level as new support—a sign of market strength
Also read: Dogecoin and Shiba Inu Price Prediction: Bullish Breakout Could Spark 20–30% Rally for DOGE and SHIB
With the Relative Strength Index (RSI) reading 71, Bitcoin is currently overbought, indicating powerful bullish momentum. However, this could also signal the potential for a near-term pullback. The MACD shows signs of indecision among traders, suggesting that Bitcoin’s next move could be pivotal.
A sustained close above $105,000 may push BTC to retest its all-time high, while a drop below that level could trigger a decline toward the psychological $100,000 mark.
Ethereum Defends 200-Day EMA with Eyes on $3,000
Ethereum (ETH) has found firm footing at its 200-day Exponential Moving Average (EMA) near $2,441 and now trades around $2,500. This level has acted as a key support zone since Sunday, providing hope for a potential rebound.
The RSI for ETH reads 69, just under the overbought threshold, suggesting bullish strength while also warning of a possible retracement. A continued hold above the 200-day EMA could see ETH climb back toward the $3,000 resistance level. Conversely, a daily close below $2,441 could open the door for a retreat toward $2,000.
XRP Holds Steady Despite Fading Momentum
Ripple (XRP) remains stable above its 50-day EMA at $2.28, despite a recent drop in momentum. The altcoin rebounded 3.18% after retesting this support on Saturday, but the daily RSI has slipped to 52, signaling weakening bullish strength. The MACD’s bearish crossover earlier this week further points to potential downside pressure.
If XRP fails to hold the 50-day EMA, it could decline to $2.23. However, a successful defense may spark a rally toward the $2.72 resistance level.
As Bitcoin nears uncharted territory and altcoins cling to key supports, the crypto market is entering a critical phase. A breakout or breakdown from current levels could set the tone for the next big move across the board.
