close
close

Mondor Festival

News with a Local Lens

    • BTC Approaches 0,000 as SEC’s Gensler Submits Resignation
    minsta

    BTC Approaches $100,000 as SEC’s Gensler Submits Resignation

    Pabio Posted on

    • Bitcoin hit a new all-time high of $99,299 on Friday, inches away from the $100,000 mark.
    • Ethereum nears its weekly resistance at $3,454; a firm close above suggests a continuation of the rally to $4,000.
    • Ripple price maintained its break above the daily resistance at $1.37, indicating further gains.

    Bitcoin (BTC) hit a new all-time high of $99,299 on Friday, just shy of the $100,000 mark following reports of Securities & Exchange Commission (SEC) Chairman Gary Gensler’s upcoming resignation on Thursday. Ethereum (ETH) and Ripple (XRP) followed BTC’s move and rallied, approaching key resistance levels. A decisive close above these points signals the potential for further bullish momentum.

    Bitcoin price nears $100,000 mark

    Bitcoin Price has grown over 10% so far this weekhitting a new all-time high of $99,229 on Friday and is currently trading above $98,800. If BTC continues its upward momentum, it could extend the rally to retest the psychologically important $100,000 level.

    However, the Relative Strength Index (RSI) momentum indicator stands at 82, signaling overbought conditions and suggesting an increasing risk of a correction. Traders should exercise caution when adding to their long positions, as the RSI’s exit from overbought territory could provide a clear sign of a pullback.

    BTC/USDT daily chart

    BTC/USDT daily chart

    If Bitcoin faces a pullback, it may refuse to retest its key psychological level of $90,000.

    Ethereum bulls show potential for further gains

    Ethereum price surged more than 9% on Thursday, closing above its 61.8% Fibonacci retracement level at $3,300. It extends its gains on Friday, trading above $3,420, closing in on its weekly resistance at $3,454.

    If ETH breaks through and closes above $3,454, it could extend the rally to its psychologically important level of $4,000.

    The RSI on the daily chart sits at 68, above its neutral level of 50 and pointing upwards, indicating that bullish momentum is gaining ground.

    ETH/USDT daily chart

    ETH/USDT daily chart

    However, if ETH fails to close above the weekly resistance at $3,454, it could face a pullback to retest its support level at $3,000.

    Ripple bulls aim for three-year high of $1.96

    Ripple Price surged nearly 13% on Thursday following SEC Chairman Gary Gensler’s announcement that he would leave his role at the agency on January 20. XRP extends its gains by 12% on Friday, surpassing its daily resistance of $1.37.

    If XRP closes above the $1.37 level, it will extend the rally and retest its three-year high of $1.96 (April 2021).

    However, the RSI stands at 89, signaling overbought conditions and suggesting an increasing risk of a correction. Traders should exercise caution when adding to their long positions, as the RSI’s exit from overbought territory could provide a clear sign of a pullback.

    XRP/USDT daily chart

    XRP/USDT daily chart

    If XRP faces a pullback, it may refuse to retest its key psychological level of $1.00. FAQ Bitcoin, altcoins and stablecoins

    Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This payment method cannot be controlled by any person, group or entity, eliminating the need for third party participation during financial transactions.

    Altcoins are any cryptocurrency besides Bitcoin, but some also consider Ethereum to be a non-altcoin because it is from these two cryptocurrencies that the fork occurs. If this is true, then Litecoin is the first altcoin, derived from the Bitcoin protocol and, therefore, an “enhanced” version of it.

    Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset they represent. To achieve this, the value of a stablecoin is linked to a commodity or financial instrument, such as the United States dollar (USD), whose supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are prone to volatility.

    Bitcoin dominance is the ratio of the market capitalization of Bitcoin to the total market capitalization of all cryptocurrencies combined. This gives a clear picture of the interest in Bitcoin among investors. Strong BTC dominance typically occurs before and during a bull run, during which investors resort to investing in relatively stable, high market cap cryptocurrencies like Bitcoin. A decline in BTC dominance typically means investors are shifting their capital and/or profits to altcoins in search of higher returns, which usually triggers an explosion in altcoin rallies.

    Pabio
    View all posts

    You Might Also Like