- Bitcoin price reaches a new all-time high of $106,648 on Monday after rallying 3.32% in the previous week.
- Ethereum price nears the $4,000 resistance level; a firm close above this suggests a rally ahead.
- Ripple price finds support around $1.96; a firm close below this would indicate a decline ahead.
Bitcoin (BTC) price reaches a new all-time high (ATH) of $106,648 on Monday. At the same time, Ethereum (ETH) eyes a rally if it can firmly close above $4,000, and Ripple (XRP) holds support at $1.96, with a breakdown signaling a possible decline.
Bitcoin reaches a new all-time high above $106,600
Bitcoin price reaches a new all-time high (ATH) of $106,648, breaking its previous high of $104,684 on Monday. If BTC continues its upward momentum, it could extend the rally to test a new ATH of $119,510. This level aligns with the 141.4% Fibonacci extension line drawn from the November 4 low of $66,835 to the December 5 all-time high of $104,088.
The Relative Strength Index (RSI) on the daily chart reads 68 and points upwards towards its overbought level of 70, indicating the bullish momentum is gaining traction.
BTC/USDT daily chart
However, if BTC declines and closes below the $100,000 psychological level, it could extend the decline to restest its $90,000 support level.
Ethereum price is poised for a rally if it closes above the $4,000 level
Ethereum price found support around the $3,522 weekly level on December 10 and rallied 9% in the next six days. At the time of writing on Monday, it trades around $3,967, approaching its $4,000 resistance level.
If ETH breaks and closes above the $4,000 level, it could extend the rally by 12% to retest its December 9, 2021, high of $4,488.
The RSI on the daily chart reads 63 after bouncing off the neutral level of 50 on Tuesday, indicating that the bullish momentum is gaining traction.
ETH/USDT daily chart
However, if ETH gets rejected for the $4,000, it could extend the decline to retest its weekly support level at $3,522.
Ripple shows signs of indecisiveness
Ripple price found support around the $1.96 level on December 10 and rallied 11% until Sunday. At the time of writing on Monday, it trades slightly down around $2.40.
If XRP continues to rise and closes above $2.66, it could extend the rally to retest the psychologically important level of $3.00.
However, the RSI on the daily chart reads 63 after rejecting the overbought level of 70, suggesting indecisiveness among the traders.
XRP/USDT daily chart
Conversely, if XRP declines and closes below $1.96, it could extend the decline to retest its weekly support level at 1.40.
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.
