Bitcoin price reached an all-time high of $106,648 on Monday, after rising 3.32% in the previous week. Ethereum price is approaching the $4,000 resistance level. A solid close above this suggests further upside. Ripple price finds support around $1.96. A closing price below this would indicate further decline.
Bitcoin (BTC) price reached an all-time high (ATH) of $106,648 on Monday. At the same time, Ethereum (ETH) is eyeing a rally if it can close solidly above $4,000, and Ripple (XRP) maintains support at $1.96, but hints at a potential breakdown. I am doing it.
Bitcoin hits new all-time high above $106,600
Bitcoin price hit an all-time high (ATH) of $106,648, breaking its previous high of $104,684 on Monday. If BTC continues its upward momentum, the rally could extend to test a new ATH of $119,510. This level coincides with the 141.4% Fibonacci extension from the November 4th low of $66,835 to the December 5th all-time high of $104,088.
The relative strength index (RSI) on the daily chart is at 68 and is trending upward towards the overbought level of 70, indicating bullish momentum is gaining momentum.
BTC/USDT daily chart
However, if BTC declines and closes below the psychological level of $100,000, the decline could widen and retest the $90,000 support level.
If Ethereum price closes above $4,000 level, price is poised to rise
Ethereum price found support near the weekly $3,522 level on December 10th and rose 9% in the following six days. As of this writing on Monday, the stock is trading around $3,967, approaching resistance at $4,000.
If ETH breaks and closes above the $4,000 level, the rally could extend by 12% and retest the December 9, 2021 high of $4,488.
The RSI on the daily chart rebounded from a neutral level of 50 to 63 on Tuesday, indicating bullish momentum is gaining momentum.
ETH/USDT daily chart
However, if ETH is denied purchases at $4,000, it could extend the decline to retest the weekly support level at $3,522.
Signs of indecision on Ripple
Ripple price found support near the $1.96 level on December 10th and rose 11% by Sunday. As of this writing on Monday, it is down slightly around $2.40.
If XRP continues its rally and closes above $2.66, the rally could extend to retest the psychologically important level of $3.00.
However, the RSI on the daily chart is at 63 after rejecting the overbought level of 70, suggesting indecision on the part of traders.
XRP/USDT daily chart
Conversely, if XRP declines and closes below $1.96, the decline could extend to retest the weekly support level at 1.40.
Frequently asked questions about Bitcoin, altcoins, and stablecoins
Bitcoin is the largest cryptocurrency by market capitalization and is a virtual currency designed to function as money. This form of payment is not controlled by any particular person, group, or entity and eliminates the need for third parties to participate during financial transactions.
An altcoin is any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is these two cryptocurrencies that forks occur. If this is true, Litecoin would be the first altcoin to fork from the Bitcoin protocol and thus be an “improved” version of it.
A stablecoin is a cryptocurrency that is designed to have a stable price, and its value is backed by the reserves of the asset it represents. To achieve this, the value of one stablecoin is pegged to a commodity or financial instrument, such as the US dollar (USD), and its supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who wish to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies are generally volatile.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the market capitalization of all cryptocurrencies combined. This clearly shows the interest in Bitcoin among investors. BTC's dominance typically occurs around bull markets, where investors turn to relatively stable, high-market-cap cryptocurrencies like Bitcoin. Decreasing BTC dominance usually means investors are moving their capital and profits to altcoins in search of higher returns, which usually causes an explosive rally in altcoins.
