xrp crypto stock

Steep correction looms crypto market

Steep correction looms crypto market
Written by publisher team

  • Bitcoin price faces rejection around the $60,000 level, which indicates a potential move towards $53,000.
  • Ethereum price rally is being reversed as the $4,387 hurdle dampens buying pressure.
  • Ripple price eyes retested the psychological barrier of one dollar after the breach from the ascending parallel channel.

Bitcoin price saw a temporary rally after its initial drop on November 18th. This rapid rise failed to gain traction, resulting in rejection and recoil. This short-term bearish forecast has translated into Ethereum, Ripple, and other altcoins.

Bitcoin price approaching another stable support level

Bitcoin price rose 7.4% in two days but failed to break or even retest the psychological support level of $60,000. As a result, BTC is undergoing a reversal to the $56,233 support level. A breakdown of this barrier will lead to a move to the $52746-$54,972 demand area.

This bearish move is crucial to collecting the liquidity below $53,000 – something that is likely to happen this week. If a large number of buyers intervene, the downtrend will stop, and a reversal can be expected. However, in a worst-case scenario, a break of the $53,000 barrier could trigger a crash of 8.7% to $48,379.

btc/usd chart for 1 day

BTC / USD 1 day chart

While things are heading lower for the price of Bitcoin, a decisive daily candle close above the $60,000 mark would turn the tables and give hope for a bullish story. In such a scenario, BTC could retest the $63,000 resistance barrier.

If the big cryptocurrency manages to flip this level, it is likely to consolidate between $63,000 and $65,000. Only a daily close above $650,000 will invalidate the bearish theory.

Ethereum price follows big cryptocurrencies

Although the price of Ethereum was showing great strength in its recovery, the bounce in BTC had a huge impact, causing a strong correction in ETH. With the price of Ethereum trading around $4,179, investors can expect to retest the psychological $4,000 level.

This crash will lead the smart contract symbol to reach the 50% Fibonacci retracement level at $3,756. Market participants can expect a short-term bounce or consolidation here. However, if BTC drops to $53,000 or even $50,000, ETH can easily be withdrawn to $3,500 or $3,200.

ETH/USD 1 day chart

ETH/USD 1 day chart

The correlation of the price of Ethereum to Bitcoin is something that investors need to pay attention to. A drop in BTC could completely invalidate a bullish setup on ETH. If BTC can achieve a daily close above $63,000, the price of Ethereum has a chance to go higher.

In this case, ETH could make a run towards the $4,609 resistance level. A daily candle close above this hurdle would result in an all-time high of $4,875. A higher rise above this level may invalidate the bearish theory.

Ripple price starts rebounding

Ripple price has created three higher highs and four higher lows since September 18th. Connecting these swing points using trend lines reveals an ascending parallel channel. This setup predicts a bearish outlook on the breakout from the lower trend line at $1.09.

On November 18, XRP price breached the base of the technical structure, indicating a breakout. Since then, a slight rally has confirmed the downside by retesting the breakout point. From now on, Ripple price will head towards the psychological $1 level.

A daily close below this barrier will lead to a 15% decrease in the demand area, which ranges from $0.77 to $0.84.

XRP/USD 1 Day Chart

XRP/USD 1 Day Chart

Regardless of the bearish expectations, if the Ripple price manages to stay above the psychological $1 level, there is a chance for a recovery. A daily close above the 50% Fib retracement level at $1.24 will invalidate the bearish theory.

However, a reversal of the $1.41 level to a support floor would open the way to $1.8 and $2.

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