The leading cryptocurrency Bitcoin (BTC) began to fall from its peak on Wednesday. Along with Bitcoin's decline, leading altcoins such as Ethereum (ETH) and Ripple (XRP) also lost value, following in BTC's footsteps. Technical indicators and price movements of all cryptocurrencies point to a possible correction in the short term. Crypto analyst Manish Chhetri discusses the three leading cryptos on the table this week and evaluates possible scenarios.
Bitcoin Price Prediction: Bulls Weakening!$BTC
Bitcoin has gained 3.32% over the past week and reached an all-time high of $108,353 on Tuesday. However, BTC price showed a slight decline on Wednesday, falling to $105,019. If BTC breaks below the $101,109 support, it is likely to continue this decline and drop to the next support level at $90,000. The Relative Strength Index (RSI) on the daily chart was rejected from the overbought region of 70 on Tuesday and is currently at 66. This indicates a weakening of the bullish momentum. If the RSI declines further and breaks below the neutral level of 50, Bitcoin price could see a sharp decline.
However, if BTC continues its rally and closes above the $108,353 ATH, a new ATH (all-time high) of $119,510 is possible, which is in line with the 141.4% Fibonacci extension of the rise from the $66,835 high on November 4 to the $104,088 high on December 5.
Ethereum Price: Testing $4,000 Resistance$ETH
Ethereum was rejected at $4,000 on Monday and fell 2.34% the following day. On Wednesday, ETH continues to trade around $3,858. If the resistance at $4,000 holds, Ethereum price could pull back to retest the weekly support level at $3,522. The RSI on the daily chart is at 57 and is trending down toward the neutral 50. This is early signs of a bear market. If the RSI drops below 50, Ethereum price could see a sharp decline.
If ETH surpasses and closes above the $4,000 level, it could rally to the $4,488 level seen on December 9, 2021. In this case, the Ethereum price could rise by another 12%.
Ripple Price: Testing $2.66 Resistance$XRP
Ripple (XRP) found strong support at $1.96 on Dec. 10 and is up 16% as of Tuesday. However, XRP saw a slight rejection when it reached $2.66 and is currently trading at $2.53 on Wednesday. If the $2.66 level continues as resistance, XRP could drop to the next support level of $2.21. The daily RSI has pulled back from the overbought level of 70 and is sitting at 65, suggesting indecision among traders.
If XRP breaks out and sustains above $2.66, it could continue its rise to retest the psychologically important $3.00 level.