Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) hover around key levels on Monday after correcting slightly in the previous week. The top three cryptocurrencies by market capitalization could face increased downside risk as bearish momentum builds across key indicators. Market participants are closely monitoring critical support zones for signs of stabilization or a deeper corrective move.
Bitcoin fails to close above the descending trendline
Bitcoin price was rejected from the descending trendline (drawn by connecting multiple highs since early October) last week. This trendline coincides with the 61.8% Fibonacci retracement level at $94,253 (drawn from the April low of $74,508 to the all-time high of $126,199 set in October), making it a key resistance zone. As of Monday, BTC hovers around $89,000.
If BTC continues its pullback, it could extend the decline toward the next key support at $85,569, which aligns with the 78.6% Fibonacci retracement level.
The Relative Strength Index (RSI) on the daily chart is at 43, below its neutral level of 50, indicating bearish momentum is gaining traction. Moreover, the Moving Average Convergence Divergence (MACD) lines are converging, and a flip to a bearish crossover would further support the bearish outlook.
Looking up, if BTC breaks above the descending trendline and closes above the $94,253 resistance level, it could extend the rally toward the $100,000 psychological level.
Ethereum corrects after facing rejection from the 50-day EMA
Ethereum price failed to close above the 50-day Exponential Moving Average (EMA) at $3,280 on Wednesday and declined 7.62% by Sunday. At the time of writing on Monday, ETH hovers around $3,100.
If ETH continues its correction and closes below the daily support at $3,017, it could extend the decline toward the next support at $2,749.
The RSI on the daily chart reads 49, slipping below the neutral level of 50, indicating early signs of bearish momentum. Similarly, the MACD lines are converging, and a confirmed bearish crossover would further suggest the negative outlook.
On the other hand, if ETH recovers, it could extend the recovery toward the 50-day EMA at $3,280.
XRP could extend its decline if it closes below $1.96 support
XRP price declined for the second consecutive week by 3.22%, retesting the key daily support at $1.96 on Sunday. At the time of writing on Monday, XRP hovers around $1.99.
If XRP closes below the daily support at $1.96, it could extend the decline toward the next daily support at $1.77.
The RSI on the daily chart is 40, below its neutral level of 50, indicating that bearish momentum is gaining traction. Additionally, the MACD lines are converging, indicating indecision among traders.
However, if the daily support at $1.96 holds, it could extend the rally toward the next daily resistance at $2.35.