Bitcoin Price Holds Steady After Recent Drop
Bitcoin (BTC) price stayed near $121,000 on Wednesday after falling the day before. Ethereum (ETH) and Ripple (XRP) also dropped, falling 5% and 4% respectively. Both traded below key support levels, showing signs of more downward pressure.
This drop in the top three cryptocurrencies happened as many holders took profits. Santiment’s Network Realized Profit/Loss (NPL) metric measures daily returns based on on-chain transaction volume. A spike in NPL means holders are selling at a profit. A dip shows holders are selling at a loss, often due to panic.
On Monday, NPL spiked for BTC, ETH, and XRP. This means many holders sold their coins at a profit, adding selling pressure.
Bitcoin Dips After Reaching Record High
Bitcoin hit a new all-time high of $126,199 on Monday after rising over 10% last week. But it fell 2.67% on Tuesday and hovered around $121,000 on Wednesday.
If BTC falls below $120,000, it may drop further to the next support at $116,000. The daily Relative Strength Index (RSI) is 63, down from overbought levels on Monday. This suggests bullish momentum is slowing and short-term consolidation may happen.
If Bitcoin keeps its upward trend, it could try to reach the record high of $126,199 again.
Ethereum and XRP Face Key Support Challenges
Ethereum rose above the $4,488 resistance level last Friday and gained 4.5% in three days. But on Tuesday, ETH dropped 5% and closed below $4,488. On Wednesday, it traded near $4,491.
If ETH continues to fall, it could reach support at $4,232. The daily RSI is 54 and pointing down, showing weaker bullish momentum. If Ethereum breaks above $4,488 and holds, it may aim for its all-time high of $4,956.
Ripple (XRP) broke above a falling wedge pattern on Thursday and found support near the upper trendline. However, it dropped nearly 5% on Tuesday and closed below this support. On Wednesday, XRP traded around $2.87.
If XRP keeps falling, it could reach support at $2.72. If it recovers, the next resistance is at $3.40.
