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Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are approaching key technical levels at the time of writing on Monday as the broader crypto market stabilizes. Market participants are closely watching whether BTC, ETH, and XRP can sustain breakouts and achieve decisive daily closes above nearby resistance levels, which could signal the start of a short-term recovery.
Bitcoin could recover if it closes above key resistance
Bitcoin price was retested and found support at the 78.60% Fibonacci retracement level at $85,869 on Thursday, and it recovered 3.67% over the next three days. As of Monday, BTC is approaching the descending trendline (drawn by connecting multiple highs since October 6).
If BTC breaks above the declining trendline and closes above the $90,000, it could extend the recovery toward the next resistance at $94,253.
The Relative Strength Index (RSI) reads 45, pointing upward toward the neutral level of 50, indicating early signs of fading bearish momentum. For the bullish momentum to be sustained, the RSI must move above the neutral level. Moreover, the Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover on Saturday, further supporting the recovery thesis.
On the other hand, if BTC faces a correction, it could extend the decline toward the key support at $85,569.
Ethereum nears key resistance level
Ethereum price was retested on Thursday and found support around the descending trendline, and it recovered nearly 6% over the next three days. As of Monday, ETH is approaching the daily resistance level at $3,017.
If ETH closes above $3,017 on a daily basis, it could extend the recovery toward the December 10 high at $3,447.
The RSI reads 47, pointing upward toward the neutral level of 50, indicating early signs of fading bearish momentum. For the bullish momentum to be sustained, the RSI must move above the neutral level. Moreover, the Moving Average Convergence Divergence (MACD) lines are converging, and a flip to a bullish crossover would further support the bullish outlook.
On the other hand, if ETH is rejected, it could extend the decline toward the key support at $2,749.
XRP could recover if it closes above $1.96
XRP was retested and found support around the lower trendline boundary of a falling wedge pattern on Friday, and recovered slightly the next day. As of Monday, XRP is approaching the daily resistance at $1.96.
If XRP closes above the daily resistance at $1.96 on a daily basis, it could extend the recovery toward the 50-day EMA at $2.13.
The RSI on the daily chart reads 42 below its neutral level of 50, indicating bearish momentum. The Moving Average Convergence Divergence (MACD) is showing a bullish crossover on Monday, indicating early signs of bullish momentum.
However, if XRP faces a correction, it could extend the decline toward Friday’s low of $1.77.