Bitcoin (BTC) is facing potential downward pressure after bouncing off the 50-day EMA at around $98,800 earlier this week. The leading cryptocurrency is now hovering near $104,000, while Ethereum (ETH) and Ripple (XRP) approach key resistance levels. Crypto analyst Manish Chhetri warns that a rejection at these levels could lead to an imminent market correction.
BTC Price Outlook: Is Bitcoin Heading for a Drop?
Bitcoin found support at $98,845, where the 50-day Exponential Moving Average (EMA) acted as a critical level on Monday. By Thursday, BTC had surged 2.69%, closing above $104,700. As of Friday, it is trading around $104,100. If BTC falls below $100,000 and closes under the 50-day EMA, the decline could extend towards the next major support at $90,000.
On the daily chart, the Relative Strength Index (RSI) is at 57, signaling weakening bullish momentum as it starts to point downward. The Moving Average Convergence Divergence (MACD) indicator is also converging, reflecting trader indecision. If MACD turns bearish on the daily chart, it could confirm a sell signal and further downside movement. However, should Bitcoin sustain its rebound, it may attempt to retest its all-time high of $109,588 from January 20.
ETH Price Forecast: Facing Resistance
Ethereum (ETH) bounced off the $3,000 psychological level on Monday, rallying 6.33% by Thursday. However, as of Friday, it is encountering resistance near a descending trendline, trading around $3,231. If this trendline holds as resistance, ETH could decline back to $3,000. A daily close below this level could extend the drop towards the next support at $2,810.
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The RSI on ETH’s daily chart has dropped to 46 after failing to break above the neutral 50 level, reinforcing the bearish sentiment. Like Bitcoin, MACD signals indecision, indicating a lack of strong momentum. If ETH breaks above the descending trendline, however, it could rally towards its next major resistance at $3,730.
XRP Price Forecast: Correction Incoming?
Ripple (XRP) bounced off an ascending trendline near $2.72 on Monday, gaining 2.25% by Thursday. As of Friday, XRP is experiencing slight resistance at $3.07. If XRP falls below the ascending trendline and closes under $2.72, it could extend losses towards its next support at $1.96.
The RSI sits at 59, pointing downward after rejection from the overbought 70 level, signaling weakening bullish momentum. Additionally, MACD turned bearish on Sunday, indicating potential selling pressure. However, if XRP holds its current trajectory, it could aim for $3.40 as the next key resistance level.
Disclaimer: The views and predictions in this article are based on market analysis and do not constitute financial advice. Always conduct your own research before making investment decisions.
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