Bitcoin is currently encountering some resistance near $101,109, which could mean a drop in price next.
Ethereum is approaching the critical resistance of $4,000 and if the price can settle firmly above this level, the chances of a rebound will increase.
Ripple has found support near $1.96, a break below which could lead to further downside moves.
Bitcoin is now facing resistance near $101,100 and could start a decline. Meanwhile, Ethereum could rebound if it can close above $4,000. Ripple could also decline if it breaks below the $1.96 support.
Bitcoin bulls showing weakness
On Thursday, Bitcoin encountered resistance at $101,109, causing the price to fall by 1.11%. By Friday, the price of Bitcoin fell slightly to around $99,700.
If $101,109 remains a strong resistance level, Bitcoin could continue to fall and retest the psychological level of $90,000.
The relative strength index (RSI) on the daily chart shows 60, down from 70 on Sunday, suggesting that the market may be somewhat weak. If the RSI continues to stay below the neutral level of 50, then bearish sentiment may intensify, pushing Bitcoin further down.
If Bitcoin continues to rise and can close above $104,088, it could extend its gains and even break out to a new all-time high of $119,510. This target coincides with the 141.4% Fibonacci extension of the November 4 low of $66,835 to the December 5 all-time high of $104,088.
Ethereum's prospects also look optimistic
On December 6, the price encountered resistance near $4,000, and then fell 9.2% for four consecutive days. However, on Tuesday, Ethereum managed to return to the support level of $3,522 and rose 7% by Thursday. As of Friday, the price of Ethereum has recovered slightly and is close to $4,000.
If Ethereum breaks out and closes above $4,000, it could rally another 12% and re-challenge its all-time high of $4,488 set on December 9, 2021.
The relative strength index (RSI) on the daily chart rebounded to 62 from 50 on Tuesday, showing that bullish momentum is building.
If Ethereum fails to break above $4,000, it could continue to decline and retest its weekly support at $3,522.
As for XRP, if it closes below the $1.96 support, it could continue to move lower
On December 8, XRP encountered resistance at $2.66, and then fell more than 15% the next day. Then on Tuesday, it retraced the support at $1.96, and rebounded 8% on Wednesday. However, the price fell slightly the following day. As of the time of writing this article on Friday, the price of XRP is around $2.32.
If Ripple continues to decline and closes below $1.96, it could continue lower and even retest the weekly support at $1.40.
From the daily chart, the RSI is already around 62, having previously rejected the overbought level above 70 and started to move downward, indicating that the upward momentum is weakening. Moreover, the MACD indicator is also supporting the downward trend of Ripple. On Tuesday, the MACD line showed a bearish crossover, sending a sell signal.
On the other hand, if XRP rises and closes above $2.66, it could continue to rise and re-challenge the psychologically important $3.00 level.