- Bitcoin is encountering resistance at its 200-day EMA, approximately $85,500; a strong close above this mark may signal a potential recovery.
- Ethereum has found support near the $1,861 level, indicating a possible rebound.
- XRP is facing resistance at the 50-day EMA near $2.50; a close above this level could suggest a recovery is on the horizon.
Bitcoin (BTC) and Ripple (XRP) are struggling against key resistance levels, with a strong close above these points indicating a potential for recovery. Meanwhile, Ethereum (ETH) appears to have found support at a crucial level, hinting at an impending upward movement.
Potential Recovery for Bitcoin if it Exceeds 200-day EMA
Since Friday, Bitcoin has encountered resistance around the 200-day Exponential Moving Average (EMA) at $85,496, currently trading below this level. This area also aligns with the daily resistance level at $85,000, marking it as significant resistance. As of Wednesday, Bitcoin is valued at approximately $82,600.
The Relative Strength Index (RSI) indicates a positive momentum trend on the daily chart. A lower low in the Bitcoin price on March 11 doesn’t correlate with the higher RSI for the same timeframe. This situation is identified as a bullish divergence, which typically leads to a trend reversal or a minor price rally.
If this bullish divergence holds true and Bitcoin manages to close above its 200-day EMA at $85,496, it could potentially extend its recovery to around $90,000.
Ethereum’s Recovery Likely if $1,861 Support Holds
Ethereum has been consistently finding support around its daily level of $1,861 since last week. As of Wednesday, it’s trading slightly above $1,930. If the support at $1,861 remains intact, Ethereum’s price might advance further towards retesting its high of $2,258 from March 7.
The RSI for Ethereum is currently at 36 after rebounding from an oversold reading of 30 last week, suggesting diminishing bearish momentum. However, for a sustained upward movement, the RSI must surpass its neutral level of 50.
XRP Shows Indecisiveness Among Traders
Ripple’s price revisited its daily support of $1.96 on March 11, recovering 10.14% in four days. However, it then faced resistance at the 50-day EMA around $2.50, declining 4.38% until Tuesday, with the current price around $2.27. A breakthrough and close above the 50-day EMA could lead to further recovery towards the $2.72 mark.
The RSI for XRP is presently at 46, close to the neutral level of 50, indicating a lack of decisive movement among traders. To maintain bullish momentum, the RSI needs to rise above 50.
