Bitcoin (BTC) trades around $121,000 at the time of writing on Friday, facing a slight pullback after reaching a record high this week. Ethereum (ETH) and Ripple (XRP) followed BTC’s footsteps and faced correction, closing below their key support levels, suggesting further downside risks.
Bitcoin could decline further if it closes below $120,000
Bitcoin price reached a new all-time high (ATH) of $126,199 on Monday, but failed to maintain the upward momentum and declined over 2% until Thursday, retesting the $120,000 support level. At the time of writing on Friday, it hovers at around $121,000.
If BTC continues its correction and closes below $120,000, it could extend the decline toward the next daily support level at $116,000.
The Relative Strength Index (RSI) on the daily chart reads 58 after falling from the overbought conditions on Monday, indicating a potential slowdown in bullish momentum and the likelihood of short-term consolidation.
BTC/USDT daily chart
However, if the $120,000 holds as support and BTC maintains its upward momentum, it could extend the rally toward the record high of $126,199.
Ethereum fails to close above the $4,488 level, signaling weakness
Ethereum price closed above the $4,488 resistance level last week, and found support around it and rose by 4.5% in the next three days. However, on Tuesday, ETH corrected 5%, closed below the $4,488 level, and continued its pullback by Thursday. At the time of writing on Friday, it hovers at around $4,370.
If ETH continues its pullback, it could extend the decline toward the next daily support at $4,232.
The RSI on the daily chart is slipping below the neutral level of 50, indicating bearish momentum is gaining traction.
ETH/USDT daily chart
However, if ETH breaks above the $4,488 level and finds support around it, the rally could extend toward the all-time high at $4,956.
XRP closes below the 100-day EMA
Ripple price faced rejection from the upper trendline boundary on October 3 and declined 8% by Thursday, closing below the 100-day Exponential Moving Average (EMA) at $2.85. At the time of writing on Friday, it trades at around $2.79.
If XRP continues its correction, it could extend the decline toward the daily support at $2.72.
The RSI on the daily chart reads 41 below the neutral level of 50, indicating bearish momentum is gaining traction. Moreover, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover on Wednesday, giving sell signals and further supporting the bearish view.
XRP/USDT daily chart
However, if XRP recovers, it could extend the rally toward the key psychological level at $3.