Bitcoin prices hovered around $96,000 on Monday after recovering from last week's decline. Ethereum price ended above weekly resistance at $3,454, indicating a move towards $4,000. Ripple price extended its gains on Monday after rising more than 60% in the previous week.
Bitcoin (BTC) consolidated on Monday after recovering from last week's decline. At the same time, Ethereum (ETH) and Ripple (XRP) extended their gains as investors reallocated capital from BTC to altcoins, suggesting the upward momentum could continue.
Bitcoin will stabilize after recovery
Bitcoin prices experienced a 7% correction last week, dropping to $90,791 before recovering to $97,000 by Friday and seeing some price action over the weekend. As of Monday, it was slightly down around $96,600.
If BTC continues its upward momentum, it could reach an all-time high (ATH) level of $99,588.
The Relative Strength Index (RSI) indicator on the daily chart is at 65, above the neutral level of 50, indicating bullish momentum. However, traders should be cautious as the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover on November 26th, indicating a sell signal.
BTC/USDT daily chart
If BTC fails to maintain its upward momentum and corrects, the decline could extend to re-test the key psychological level of $90,000.
Ethereum in the spotlight at the $4,000 mark
Ethereum price closed above weekly resistance at $3,454 on Wednesday, rising nearly 3.5% over the next four days. As of this writing on Monday, it is hovering around $3,691.
If $3,454 holds as support, ETH could rebound to retest the psychologically important $4,000 level.
The RSI indicator on the daily chart is at 68, above the neutral level of 50, indicating that the bullish momentum is increasing and well below overbought conditions.
ETH/USDT daily chart
Conversely, if ETH declines and closes below the $3,454 level, it could face a pullback that retests the $3,335 support level.
Ripple Bull remains strong
Ripple price rose more than 60% last week, hitting a three-year high of $2.35. It extended its gains on Monday, trading above $2.41.
If XRP continues its upward momentum, it will extend its rally to retest the $2.66 level. However, the RSI is at 93, indicating overbought conditions and suggesting the risk of a correction is increasing. A breakout of the RSI from overbought territory could signal a pullback.
XRP/USDT daily chart
If XRP fails to maintain its upward momentum and faces a pullback, it may decline to retest the $1.96 support level. Bitcoin, altcoins, and stablecoins FAQs
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.
