Bitcoin drops below $100K Despite a 5% decline the day before, Bitcoin’s (BTC) price is still hovering around $97,000 on Wednesday. While Bitcoin (BTC) falls 8.3 percent, Ethereum (ETH) falls 6.3 percent, and Ripple (XRP) drops 6.15%. This recent decline has set off a tidal wave of sales, with more than $560 million worth of crypto already sold, according to data from CoinGlass.
Bitcoin falls below $100K.
On Tuesday, Bitcoin drops below $100K of bitcoin fell 5.17 percent, ending the day below the $100,000 support level. As of Wednesday’s writing, it is hovering around $97,000. If Bitcoin’s drop continues, the 38.2% Fibonacci retracement level, drawn from the low of $66,835 on November 4 to the high of $108,353 on December 17, might be tested at $92,493.
The Relative Strength Index (RSI), 49 on the daily chart, showed traders’ indecision. The index is circling its neutral level of 50. If the RSI closes below this level, a severe decline in Bitcoin’s price may be in store, signalling the start of bearish momentum.
But if Bitcoin bounces back and stays over $100,000, the surge might continue until it retests its all-time high of $108,353 on December 17, 2024.
Ethereum falls below 50-day EMA
The price of Ethereum fell 8.3 percent on Tuesday, closing at $3,446—below the 50-day exponential moving average. As of Wednesday’s writing, it is currently hovering at $3,395. If it closes below the $3,236 support level, ETH might continue its drop and retest its psychologically important level of $3,000. With an RSI reading of 44 on the daily chart, below its neutral threshold of 50, bearish momentum is indicated.
On the other hand, ETH can potentially retest its psychologically important milestone of $4,000 if it recovers, breaks above $3,236, and closes above the $3,522 weekly resistance mark.
Ripple may rally above the symmetrical triangle.
A symmetrical triangle comprising two converging trendlines and numerous highs and lows is the technical pattern that the ripple price is currently trading inside (from early December to early January). One way to determine the target for this bullishly biased technical pattern is to measure. The distance from the initial swing high and low to the breakout point.
Tuesday saw a 6.15 percent drop in XRP as it was rejected from the top trendline of the symmetrical triangle. Wednesday morning finds it trading at approximately $2.32, having recovered somewhat. This pattern would achieve a technical objective of $3.63, with the candlestick closing above the $2.56 resistance line. However, because traders choose to book profits. This potential move may slow down following a 17% rally to retest Ripple’s psychological importance level of $3.00. Investors should exercise caution while considering this move.
A reading of 53 for the relative strength index (RSI), which is higher than its neutral value of 50, suggests that the bullish momentum is rising. On the other hand, XRP might continue its fall till it retests the $1.40 support level if it closes below the $1.96-day support level.
Final Thoughts
The recent market downturn has brought Bitcoin, Ethereum, and Ripple to critical price levels, highlighting the cryptocurrency market’s volatility. While technical indicators suggest potential bearish momentum, opportunities for recovery remain if key support levels hold and sentiment improves. Bitcoin’s struggle to stay above $100K, Ethereum’s battle with its 50-day EMA, and Ripple’s symmetrical triangle pattern all reflect a market in flux.
Traders should closely monitor these critical levels and indicators like the RSI for signs of further declines or potential rebounds. As always, caution and well-informed decision-making are crucial, given the rapid shifts in market dynamics.
