The price of Bitcoin exceeded $19,000 on 24 November and reached $19,299 for Binance. As BTC recovered, the major alternative crypto currencies – including Ethereum and Ripples XRP – fell sharply.
It remains to be seen whether the trend of profits from Altcoins, which are included in Bitcoin, will continue in the near future. One variable, however, could prevent a broader downturn in the Altcoin market – and that is resistance at $20,000.
How Ethereum and Ripples XRP could rise again in the near future
Bitcoin has passed the $19,000 mark and is now approaching an all-time high of almost $20,000.
But until the $20,000 mark is broken, it serves as an important resistance zone. So this could mean that a price range between $19,000 and $20,000 is forming.
If Bitcoin shows signs of consolidation between the two levels, this could help Altcoins to recover. Ethereum and Ripples XRP fell rapidly when BTC started to rise, but have recovered since then.
Ripples XRP, for example, fell from $0.72 to $0.567, recording a 20% decline within a few hours. Although Ethereum experienced a smaller retreat, it recorded a similar price movement.
Ethereum fell 5% as Bitcoin began its move towards $19,000 in the same period as XRP.
Ripples XRP recorded a sharp decline during the day due to its extreme volatility. While XRP peaked below $0.8 in Binance, the token reached $0.9 in Coinbase, causing a veritable frenzy around the crypto currency and even leading to a temporary Coinbase failure.
After the withdrawal of the old coin market, the probability of a short-term recovery is higher than a continued correction.
In the short term, the $20,000 mark remains a key resistance level for Bitcoin. Therefore, the probability of a recovery of the Altcoin market remains high as long as BTC does not reach a new all-time high.
If BTC breaches the $20,000 mark, there is a high probability that it will absorb most of the volume in the crypto-currency market. Should this happen, the momentum of the Altcoin market could slow down in the short term.
A recovery at ETH is more likely
Ethereum is experiencing a particularly strong correction after reaching a multi-year high of $ 625.
ETH is likely to experience a deep retreat due to a sell-the-news market reaction. Indeed, today, 24 November, Ethereum officially reached the threshold for the launch of Eth2.
At ETH, the retreat may have been due to the fact that crypto currencies tend to fall after big announcements. However, traders had also predicted a short-term consolidation after ETH had reached 625 dollars.
After ETH reached $625, the pseudonymous trader named „Loma“ wrote that a consolidation of one to two days was likely. Loma on this:
„And there is the test of $625~ to $ETH If things go accordingly, 1-2 days consolidation before I mark up to ~$750-800 where I expect the peak“.