Bitcoin (BTC) price edges slightly down during the Asian session on Wednesday. Ethereum (ETH) and Ripple (XRP) followed BTC’s footsteps and declined slightly; all coins’ technical indicators and price action suggest a possible short-term correction on the cards.
Bitcoin bulls show signs of exhaustion
Bitcoin price reached a new all-time high of $108,353 on Tuesday after rallying 3.32% in the previous week. At the time of writing on Wednesday, it trades slightly down around $105,019.
If BTC faces a correction and closes below the $101,109 support level, it would extend the decline to retest its next support level at $90,000.
The Relative Strength Index (RSI) on the daily chart reads 66 after rejecting the overbought level of 70 on Tuesday and points downwards, indicating a decrease in bullish momentum. If the RSI continues to edge down and close below its neutral level of 50, the price of Bitcoin will fall sharply.
BTC/USDT daily chart
However, if Bitcoin continues its upward trend and closes above its ATH of $108,353, it would extend the rally to test a new ATH of $119,510. This level aligns with the 141.4% Fibonacci extension drawn from the November 4 low of $66,835 to the December 5 high of $104,088.
Ethereum price is set for a downturn as it faces rejection around $4,000
Ethereum price faced rejection around the $4,000 level on Monday and declined 2.34% the next day. At the time of writing on Wednesday, it continues to trade down around $3,858.
If the $4,000 level continues as resistance, ETH will extend the pullback to retest its weekly support at $3,522.
The RSI on the daily chart reads 57, pointing downwards towards its neutral level of 50, indicating early signs of bearish momentum. If the RSI closes below 50 on a daily basis, Ethereum’s price would fall sharply.
ETH/USDT daily chart
If ETH breaks and closes above the $4,000 level, it could extend the rally by 12% to retest its December 9, 2021, high of $4,488.
Ripple shows signs of indecisiveness
Ripple price found support around the $1.96 level on December 10, rallied 16% until Tuesday, and faced slight rejection around the $2.66 level. At the time of writing on Wednesday, it trades slightly down around $2.53.
If the $2.66 level continues as resistance, XRP could extend the decline to retest its next support level at $2.21.
The RSI on the daily chart reads 65 after rejecting the overbought level of 70, suggesting indecisiveness among the traders.
XRP/USDT daily chart
If XRP continues to rise and closes above $2.66, it could extend the rally to retest the psychologically important level of $3.00.
