BTC and XRP stalls while ETH eyes rally
- Bitcoin price faces rejection around the $101,109 level, suggesting a decline ahead.
- Ethereum price approaches $4,000 resistance level; a firm close above this suggests a rally ahead.
- Ripple price finds support around $1.96; a firm close below this would indicate a decline ahead.
Bitcoin (BTC) faces resistance near $101,100, hinting at a potential downturn. At the same time, Ethereum (ETH) eyes a rally if it can firmly close above $4,000, and Ripple (XRP) holds support at $1.96, with a breakdown signaling a possible decline.
Bitcoin bulls show signs of weakness
Bitcoin price faced rejection on the daily resistance level of $101,109 on Thursday and declined 1.11%. At the time of writing on Friday, it trades slightly down around $99,700.
If the $101,109 level continues as resistance, BTC could extend the decline to retest its psychologically important level of $90,000.
The Relative Strength Index (RSI) on the daily chart reads 60, rejecting the overbought level of 70 on Sunday, indicating signs of weakness. Moreover, if the RSI daily closes below the neutral level of 50, it generally indicates bearish momentum is gaining traction, leading to a further decline in Bitcoin’s price.
BTC/USDT daily chart
Conversely, if BTC continues its recovery and closes above $104,088, it could extend the rally toward a new all-time high of $119,510. This level aligns with the 141.4% Fibonacci extension line drawn from the November 4 low of $66,835 to the December 5 all-time high of $104,088.
Ethereum price looks promising
Ethereum price faced rejection around the $4,000 psychological level on December 6 and declined 9.2% over the next four days. It retested the weekly support of $3,522 on Tuesday and recovered 7% until Thursday. At the time of writing on Friday, it trades slightly higher, approaching the $4,000 level.
If ETH breaks and closes above $4,000, it could rally 12% to retest its December 9, 2021, high of $4,488.
The RSI on the daily chart reads 62 after bouncing off the neutral level of 50 on Tuesday, indicating that the bullish momentum is gaining traction.
ETH/USDT daily chart
However, if ETH gets rejected for the $4,000, it could extend the decline to retest its weekly support level at $3,522.
Ripple could face a decline if it closes below $1.96 support level
Ripple price faced resistance around the $2.66 level on December 8 and declined more than 15% the next day. It retested the $1.96 support level on Tuesday and rebounded 8% until Wednesday. However, it declined slightly the next day. At the time of writing on Friday, it hovers around $2.32.
If XRP declines and closes below $1.96, it could extend the decline to retest its weekly support level at 1.40.
The RSI on the daily chart reads 62 and points downwards after rejecting the overbought level of 70, suggesting weakness in bullish momentum. Additionally, the MACD indicator also supports the Ripple price decline. The MACD line shows a bearish crossover on Tuesday, indicating sell signals.
XRP/USDT daily chart
Conversely, if XRP rallies and closes above the $2.66 level, it could extend the rally to retest the psychologically important level of $3.00.
Bitcoin, altcoins, stablecoins FAQs
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.
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.
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.
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.
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2024-12-13 05:05:38
