Top 3 Price Prediction Bitcoin, Ethereum, Ripple: All hints for a continuation of the correction
- Bitcoin price retests its 38.2% Fibonacci retracement level of $92,493; a firm close below it could continue its ongoing correction.
- Ethereum price closed below its 50% retracement level of $3,236, suggesting the continuation of the pullback.
- Ripple price could rally if it breaks above the upper symmetrical triangle boundary.
Bitcoin (BTC) retests its key support level of $92,493; a firm close below it could continue its ongoing correction. Ethereum (ETH) price closed below its crucial support level of $3,236, suggesting the continuation of the pullback. However, the Ripple (XRP) price could rally if it breaks above the upper symmetrical triangle boundary.
Bitcoin could continue its downturn if it closes below $92,493
Bitcoin price declined 9.47% from Tuesday to Thursday, closing below $92,552. On Friday, it recovers slightly after testing its 38.2% Fibonacci retracement level of $92,493 (drawn from the November 4 low of $66,835 to the December 17 high of $108,353).
If BTC continues its pullback and closes below $92,493, it could extend the decline to test the psychological level of $90,000.
The Relative Strength Index on the daily chart read 43, below its neutral level of 50, indicating bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator also shows a bearish crossover on Wednesday, suggesting a sell signal and a downtrend.
BTC/USDT daily chart
However, if BTC recovers and closes above the $100,000 level, it could extend the rally to retest the December 17, 2024, all-time high of $108,353.
Ethereum price closes below key $3,236 support
Ethereum price declined 12.70% and closed below its 50% price retracement level of $3,236 on Thursday. At the time of writing on Friday, it trades around $3,252.
If ETH continues its correction, it could extend the decline to test its psychological importance level of $3,000.
The RSI indicator on the daily chart reads 40, below its neutral level of 50, indicating bearish momentum. Additionally, the MACD indicator also shows a bearish crossover on Thursday, suggesting a sell signal and a downtrend.
ETH/USDT daily chart
Conversely, if ETH recovers, it could extend the rally to retest its weekly resistance at $3,522.
Ripple could rally if the symmetrical triangle resolves upward
Ripple price trades inside a symmetrical triangle, a technical pattern formed by connecting multiple highs and lows with two converging trendlines (from early December to early January). This technical pattern has a bullish bias, and the target is generally obtained by measuring the distance between the first swing high and the first swing low to the breakout point.
On Tuesday, XRP faced rejection from the upper trendline of the symmetrical triangle and declined by 6.11% until Thursday. At the time of writing on Friday, it trades at around $2.28.
Assuming the breakout happens by closing a daily candlestick above the daily resistance level at $2.56, the technical target obtained by this pattern would be $3.63. Investors should be cautious of this theoretical move as it could face a slowdown after a 17% rally to retest Ripple’s psychological importance level of $3.00 as traders could opt to book profits.
The RSI indicator reads 51, above its neutral value of 50, indicating indecisiveness.
XRP/USDT daily chart
However, if XRP closes below the $1.96 daily support level, it would extend the decline to retest its next support level at $1.40.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
