- Bitcoin price hovered $96,000 on Monday after recovering from last week’s pullback.
- Ethereum price closed above the weekly resistance of $3,454, indicating a rally towards $4,000.
- Ripple price extends its gains on Monday after rallying more than 60% in the previous week.
Bitcoin (BTC) consolidated on Monday following its recovery from last week’s pullback. At the same time, Ethereum (ETH) and Ripple (XRP) extended their rallies, driven by investors reallocating capital from BTC to altcoins, signaling the potential for continued upward momentum.
Bitcoin consolidates after a recovery
Bitcoin price experienced a 7% correction last week, dropping to $90,791 before recovering to $97,000 by Friday and consolidated during the weekend. As of Monday, it trades slightly down around $96,600.
If BTC continues its upward momentum, it could rally to reach its all-time high (ATH) level of $99,588.
The daily chart’s Relative Strength Index (RSI) indicator reads 65, above its neutral level of 50, indicating bullish momentum. However, traders should be cautious as the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover on November 26, signaling sell signals.
BTC/USDT daily chart
If BTC fails to maintain its upward momentum and corrects, it could extend the decline to retest its important psychological level of $90,000.
Ethereum bull eye for the $4,000 mark
Ethereum price broke and closed above the weekly resistance of $3,454 on Wednesday and rallied almost 3.5% in the next 4 days. At the time of writing on Monday, it hovers around $3,691.
If the $3,454 holds as support, ETH could rally to retest the psychologically important $4,000 level.
The RSI indicator on the daily chart reads at 68, above its neutral level of 50, indicating that bullish momentum is gaining traction well below overbought conditions.
ETH/USDT daily chart
Conversely, if ETH declines and closes below the $3,454 level, it could face a pullback to retest the $3,335 support level.
Ripple bulls remain strong
Ripple price rallied more than 60% last week, reaching a new three-year high of $2.35. On Monday, it extended its gains and traded higher above $2.41.
If XRP continues its upward momentum, it will extend its rally to retest its $2.66 mark. However, the RSI stands at 93, signaling overbought conditions and suggesting an increasing risk of a correction. The RSI’s move out of overbought territory could signify a pullback.
XRP/USDT daily chart
If XRP fails to maintain the upward momentum and faces a pullback, it could decline to retest its $1.96 support level.Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
