Bitcoin price is facing a rejection near $101,109, hinting at an upcoming decline. Ethereum price approaches 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) is facing resistance near $101,100, indicating a possible decline. 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 bulls show signs of weakness
Bitcoin price bounced back to daily resistance at $101,109 on Thursday, down 1.11%. As of this writing on Friday, it is down slightly around $99,700.
If the $101,109 level continues as resistance, BTC could extend the decline to retest the psychologically important level of $90,000.
The Relative Strength Index (RSI) on the daily chart is at 60, negating Sunday's overbought level of 70 and showing signs of weakness. Additionally, if the RSI closes each day below the neutral level of 50, it generally indicates increasing bearish momentum, leading to further declines in Bitcoin price.
BTC/USDT daily chart
On the other hand, if BTC continues its recovery and closes above $104,088, it could extend the rally towards an all-time high 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.
Ethereum price looks promising
Ethereum price faced a rebound near the psychological level of $4,000 on December 6th, and fell 9.2% in the following four days. It retested weekly support at $3,522 on Tuesday and recovered 7% by Thursday. As of this writing on Friday, the stock is up slightly, approaching the $4,000 level.
If ETH closes above $4,000, it could rise 12% and retest the December 9, 2021 high of $4,488.
The RSI on the daily chart is at 62 after bouncing off the neutral level of 50 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.
Ripple could face a downside if it closes below the $1.96 support level
Ripple price faced resistance near the $2.66 level on December 8th and fell by more than 15% the next day. It retested the $1.96 support level on Tuesday and rebounded 8% by Wednesday. However, the price dropped slightly the next day. At the time of writing on Friday, it was hovering around $2.32.
If XRP declines and closes below $1.96, the decline could widen to retest the weekly support level at 1.40.
The RSI on the daily chart is reading 62 and has turned downward after rejecting the overbought 70 level, suggesting weaker bullish momentum. Furthermore, the MACD indicator also confirms the decline in Ripple price. The MACD line showed a bearish crossover on Tuesday, indicating a sell signal.
XRP/USDT daily chart
Conversely, if XRP rebounds and closes above the $2.66 level, the rally could extend to retest the psychologically important level of $3.00.
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. Also, since cryptocurrencies are generally volatile, stablecoins allow investors to store value.
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.
