Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) remain under pressure as the broader market continues its corrective phase into midweek. The weak price action of these top three cryptocurrencies by market capitalization suggests a deeper correction, as momentum indicators are beginning to tilt bearish.
Bitcoin could extend its correction if it closes below $85,569
Bitcoin price was rejected from a descending trendline (drawn by connecting multiple highs since early October) on Friday and has declined nearly 7% since then, retesting the $85,569 support level on Monday. However, BTC rebounded slightly on Tuesday after finding support at $85,569. At the time of writing on Wednesday, BTC hovers at around $87,300.
If BTC continues its correction and closes below $85,569 on a daily basis, which aligns with the 78.6% Fibonacci retracement, it could extend the decline toward the psychological $80,000 level.
The Relative Strength Index (RSI) on the daily chart is at 40, below its neutral level of 50, indicating bearish momentum 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.
If BTC recovers, it could extend the advance toward the 61.8% Fibonacci retracement level at $94,253.
Ethereum momentum indicators show bearish signs
Ethereum price failed to close above the 50-day Exponential Moving Average (EMA) at $3,249 on December 10 and declined 11% by Tuesday. As of Wednesday, ETH continues to decline, trading below $2,946.
If ETH continues its correction, it could extend the decline toward the next support at $2,749.
The RSI on the daily chart is 41, below its neutral level of 50, indicating that bearish momentum is gaining traction. Moreover, the MACD is showing a bearish crossover on Wednesday, further supporting the negative outlook.
On the other hand, if ETH recovers, it could extend the recovery toward the 50-day EMA at $3,249.
XRP bears are aiming for $1.77 as it closes below key support
XRP price declined for the second consecutive week by 3.22%, retesting the key daily support at $1.96 on Sunday. As of this week, on Monday, XRP continues the correction and closes below this support level. However, on Tuesday, XRP recovered slightly, and as of Wednesday, it hovers around $1.91.
If XRP continues its pullback, it could extend the decline toward the next daily support at $1.77.
The RSI on the daily chart is 37, below its neutral level of 50, indicating that bearish momentum is gaining traction. Additionally, the MACD indicator also showed a bearish crossover on Sunday, which remains intact, further supporting the bearish thesis.
However, if XRP recovers, it could extend the advance toward the daily resistance level at $1.96.