Bitcoin and Ethereum Prices Surge, XRP Lags Behind
The price movements of Bitcoin (BTC), Ethereum (ETH), and XRP have shown distinct trends in 2023. According to a recent post by Santiment, over 80% of the supply of these cryptocurrencies is currently in profit. This is higher than the historical average of 55-75%.
Are Cryptos at Risk of Reversal?
Examining the price movements of Bitcoin, Ethereum, and XRP can help determine if a correction is likely.
Bitcoin Price Breaks Down From Pattern
The Percent Supply in Profit (PSP) indicator for Bitcoin is currently at 85%. In previous market cycles, when PSP moved above 80 after a bottom, it was followed by a significant correction. This pattern was observed in both 2014 and 2018. The current BTC price action aligns with this bearish development, as it has fallen since reaching a high of $48,970 on January 11, 2024. The daily RSI also supports the breakdown, indicating that Bitcoin may have reached a local top.
Ethereum Price Consolidates Above Resistance
In contrast to Bitcoin, the price movement for Ethereum is more bullish. ETH broke out from the $2,350 horizontal area, which has acted as both support and resistance since May 2021. The weekly close above this level is extremely bullish, especially considering the increasing RSI. If the upward movement continues, ETH could reach the next resistance at $3,500.
XRP Hovers Below Resistance
XRP’s trend is currently undetermined. The price has fallen under a descending resistance trend line since July and recently experienced a rejection on December 28, 2023. While it still trades above the $0.54 support, a breakdown below this level could result in an 18% price drop to the closest support at $0.47. On the other hand, a breakout from the trend line could lead to a 25% increase to the next resistance at $0.72.
Hot Take: Mixed Trends in Crypto Market
The crypto market is experiencing mixed trends, with Bitcoin showing bearish signals, Ethereum demonstrating bullish potential, and XRP’s trend yet to be determined. It remains to be seen how these cryptocurrencies will perform in the coming weeks, but it’s important for crypto investors to stay informed and make decisions based on their own research and analysis.
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