Bitcoin Stages Comeback as New Hampshire Greenlights First US State Crypto Reserve – ETH and XRP Riding the Wave
Bitcoin bulls are back in charge after New Hampshire lawmakers approved the nation’s first state-level Bitcoin reserve—because nothing says ’fiscal responsibility’ like betting public funds on volatile digital assets.
Ethereum and Ripple are tagging along for the ride, with traders eyeing key resistance levels as the crypto market shakes off its latest regulatory drama.
Will this be the catalyst for the next leg up, or just another opportunity for Wall Street to dump bags on retail? Place your bets.
Bitcoin could extend gains toward $100,000 if it closes above its key resistance level
Bitcoin price was rejected from its daily resistance level of $97,000 on Friday and declined 2.89% over the next two days. However, at the start of this week, it recovered from its pullback and continued rising through Tuesday. At the time of writing on Wednesday, it is approaching its key resistance level at $97,700. The current price action has two possibilities.
If BTC breaks and closes above its $97,700 level on a daily basis, it could extend the rally toward its psychological resistance at $100,000.
Another scenario is that if BTC faces resistance around $97,700, it could extend the decline to retest its next key support level at $90,000.
The Relative Strength Index (RSI) on the daily chart reads 64, above its neutral level of 50, indicating a bullish momentum and supporting the bullish case. However, the Moving Average Convergence Divergence (MACD) indicator on the daily chart coils against each other, suggesting indecisiveness among the traders.
BTC/USDT daily chart
Ethereum nears its upper boundary of consolidation around $1,861
Ethereum price has been consolidating between the $1,700 and $1,861 zones for the last 13 days. At the time of writing on Wednesday, it is nearing its upper boundary of consolidation around $1,861.
If ETH breaks and closes above the daily resistance at $1,861, it could extend the rally to retest its psychological importance level at $2,000.
The RSI on the daily chart reads 56, above its neutral level of 50, indicating a bullish momentum. The MACD indicator also showed a bullish crossover last week, giving buy signals and suggesting a continuation of an upward trend.
ETH/USDT daily chart
However, if ETH faces a pullback, it could extend the decline to retest its lower boundary at $1,700. A successful close below this level could extend the decline to test its next support level at $1,449.
XRP shows weakness as it closes below its 50-day EMA
XRP price closed below its 50-day EMA level at $2.20 on Saturday and declined 2.21% until Monday. However, it recovered slightly the next day. At the time of writing on Wednesday, it hovers around $2.14.
If the 50-day EMA holds as resistance and XRP continues to decline, it could drop to $1.96.
The RSI on the daily chart reads 47, below its neutral level, indicating a bearish momentum. The MACD indicator also showed a bearish crossover on Monday, giving sell signals and suggesting a downward trend.
XRP/USDT daily chart
On the other hand, if XRP breaks and closes above the $2.20 level, it will extend the rally to retest its March 24 high of $2.50 before potentially reaching $3.00.
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.
