The Crypto Market On Alert: Bitcoin, Ethereum, And Ripple Threatened

The crypto market is about to experience a turbulent period with the three main cryptocurrencies pointing towards the red. Price forecasts for Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) indicate a possible correction ahead. According to technical indicators, these cryptocurrencies show signs of resistance at key levels, suggesting a potential decline in the days to come.

The main cryptos point towards the red!

Bitcoin recently reached a new historic peak of $104,088 before falling to $90,500. Although it recovered and closed above $96,900, the RSI shows a bearish divergence, which may indicate a short-term correction. If this divergence is confirmed, the price of BTC could initially rise slightly to reach the recent peak, then drop sharply towards the support level of $90,000. A successful close below this level could lead to a further decline of the crypto towards $85,000.

Ethereum, for its part, faced resistance around the $4,000 level. After a rise of 8% last week, ETH tested this level on Friday but failed to break through. The RSI, which rejected the overbought level of 70, indicates weakness in the bullish momentum. If the resistance at $4,000 persists, Ethereum may retest its daily support level of $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) has also shown signs of weakness after reaching resistance at $2.66. Currently, the crypto is trading well below this level, around $2.39. If the resistance at $2.66 continues to hold, Ripple may retest the psychologically important level of $2.00. The RSI, which remains 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. Moreover, favorable data on the upcoming CPI could reinforce a bullish trend, especially if it indicates controlled inflation, which would be viewed positively by investors. As Ryan Lee, Chief Analyst at Bitget, also believes:

The release of the US November CPI data is a key event this week, as it will influence expectations around a potential rate cut in December. We expect some risk aversion ahead of the CPI release, but also keep an eye on Microsoft’s audit of Bitcoin investment proposals, which could significantly impact Bitcoin’s short-term price trajectory. For the week ahead, we forecast Bitcoin’s price range to be between $92,000 and $105,000, with Ethereum fluctuating between $3,700 and $4,200.

In summary, although Bitcoin, Ethereum, and Ripple have recently reached high levels, the technical indicators suggest a possible short-term correction. Investors should closely monitor key support and resistance levels to anticipate future movements of these cryptos.