- Bitcoin is trading below resistance at $94,000 while buyers are protecting support near the $88,000 level.
- Ethereum has declined by 35% in recent weeks and is now testing a critical support area.
- Ripple holds near $2.00 while traders closely monitor a potential breakout.
The cryptocurrency market is entering a critical phase, with mixed signals from the top three coins. Ethereum is testing an important support level again, Bitcoin is moving sideways below strong resistance, and Ripple is approaching a price level.
### Bitcoin faces less difficulty at resistance
Bitcoin has spent the past few weeks consolidating after its recent pullback. While the overall trend remains bearish, short-term price action is showing some stability. Bitcoin faces strong resistance between $92,000 and $94,000, a level it has failed to break through multiple times.
On the positive side, Bitcoin is forming higher lows on shorter time frames, indicating that buyers are still stepping in on dips. Strong support lies near $88,000 to $89,000, with deeper support near $85,000 if selling pressure increases. For now, Bitcoin remains stuck in a wait-and-see zone.
### Ethereum turns red, but Ripple may shine
Ethereum has been weaker than Bitcoin and has now declined about 35% over the past 12 weeks. The asset is re-testing a key support level, and the next move will be critical. A weak bounce could confirm a deeper correction, while a strong recovery may indicate that the worst of the pullback is over.
Unlike the beginning of the year, retail enthusiasm around Ethereum has cooled. This may reduce panic selling, but it also means fewer short-term buyers to push prices higher.
Ripple continues to trade near the $2.00 mark, with bulls and bears engaged in a tight battle. Sentiment on social media remains positive, and price action suggests that Ripple is nearing a major technical level. A clean breakout could spark higher volatility in either direction.
### Macro factors begin to rebuild
Outside of the charts, macro factors are playing an increasing role:
- The US Federal Reserve recently lowered interest rates by 25 basis points, a step that was widely anticipated. Typically, lower rates support riskier assets like cryptocurrencies by encouraging borrowing and investment.
- The global money supply M2 has reached an all-time high, showing that liquidity is slowly returning. In the past, Bitcoin and altcoins often rallied when the money supply increases.
