The crypto market is about to experience troubled times with the three main cryptocurrencies pointing towards the red. Price predictions for Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) indicate a possible correction ahead. According to technical indicators, these cryptocurrencies are showing signs of resistance at key levels, suggesting a potential pullback in the days to come.
The main cryptos are pointing towards the red!
Bitcoin recently hit a new all-time high of $104,088 before falling to $90,500. Although it recovered and closed above $96,900, the RSI shows a bearish divergence, which could indicate a near-term correction. If this divergence holds, BTC price could first rise slightly to reach the recent high and then fall sharply towards the $90,000 support level. A successful close below this level could see the crypto further decline towards $85,000.
Ethereum, meanwhile, faced resistance around the $4,000 level. After rising 8% last week, ETH tested this level on Friday, but failed to surpass it. The RSI, which rejected the overbought level of 70, indicates weakness in the bullish momentum. If resistance at $4,000 persists, ethereum could retest its daily support level at $3,721. However, if ethereum manages to close above $4,000, it could extend its crypto rally to test the $4,200 level.
Ripple (XRP) also showed signs of weakness after hitting resistance at $2.66. Currently, the crypto is trading well below this level, around $2.39. If resistance at $2.66 continues to hold, Ripple could retest the psychologically important $2.00 level. The RSI, which is holding around the overbought level of 70, also indicates weakness in the bullish momentum.
A rate cut to reverse everything?
A possible interest rate cut by the FED in December could boost these cryptos by increasing their liquidity and making them more attractive to investors. Additionally, favorable upcoming CPI data could reinforce an uptrend, particularly if it indicates controlled inflation, which would be viewed positively by investors.
In sum, although bitcoin, ethereum and ripple have recently reached high levels, technical indicators suggest a possible short-term correction. Investors should closely monitor key support and resistance levels to anticipate future movements of these cryptos.
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