- Bitcoin is back under $18,000, while a break under the 200 SMA support might send it to $16,000.
- Ethereum downtrend is set to find formidable support, targets $480 if 200 SMA support breaks.
- Ripple in consolidation ahead of the Spark token airdrop scheduled for December 12.
Cryptocurrencies across the board are nursing wounds led by the flagship digital asset, Bitcoin. Recovery from the mid-week declines is an uphill battle for the bulls. Investors are jittery and wondering if this could be the end of the bull run.
As discussed before, some analysts believe that Bitcoin is targeting support of $13,000 before a significant reversal comes into the picture. In other words, Bitcoin is not done with the downside, especially now that it is back to trading under $18,000.
The altcoin correlation to the bellwether cryptocurrency is still substantial; thus, we can expect most of the digital assets to fall if Bitcoin plummets. For now, bears have the upper hand even as the weekend is ushered in.
Bitcoin declines seem unstoppable to $16,000
The king of cryptocurrencies appears to be trying its luck on securing support at two crucial levels; the descending parallel channel’s lower boundary and the 200 Simple Moving Average. This comes after BTC was rejected at $18,500 and closed the day under $18,000.
Massive sell orders are expected to be triggered if Bitcoin breaks under the levels mentioned above. Sharp declines will come into play, adding credibility to the bearish outlook targeting $16,000.
The Relative Strength Index adds credence to the depleting technical picture. Therefore, the least resistance path is downwards. On the other hand, sellers could explore the downside some more because Bitcoin is not yet oversold.
BTC/USD 4-hour chart
It is worth mentioning that BTC/USD will resume the uptrend if support at the 200 SMA holds firmly. Closing the day above, $18,000 may save buyers from an extended breakdown to $16 and probably set Bitcoin on a pathway to $19,000.
Ethereum downside eyes $480 as overhead pressure increases
Ether, like Bitcoin, is depending on the ability of the 200 SMA on the 4-hour chart to hold. If it fails, the ongoing retreat might stretch as far as $480. Note that buyer congestion at $530 prevented Ethereum from falling further earlier this week.
However, massive sell orders are expected to slide under the 200 SMA. The RSI has reinforced the bearish outlook as it dives into the oversold region. Note that the support zone between $500 and $520 will absorb some of the selling pressure, but if bypassed, ETH will seek refuge at $480.
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ETH/USD 4-hour chart
The bearish outlook will be sabotaged if Ethereum closes the day above $540. This is only possible if support at the 200 SMA remains intact.
Consequently, a descending wedge pattern seems to be forming, which might see buyers regain most control over the price. A breakout above the chart pattern could catapult Ethereum past crucial hurdles at $580 and $600.
Ripple consolidates ahead of the Spark token airdrop
Ripple has sustained minor losses compared to Bitcoin and Ethereum in the ongoing retreat. Most analysts believe that XRP demand has been steady due to the Spark token airdrop on December 12, as reported.
At the time of writing, the cross-border cryptocurrency is trading slightly above $0.55. The Bollinger Bands’ middle boundary limits XRP’s upside. A daily close above this immediate hurdle will add weight to a probable breakout above $0.6.
Despite the consolidation, Ripple’s trend is leaning on the upside, as highlighted by the RSI. Moreover, a recovery above $0.6 may be confirmed by the RSI’s liftoff past the midline. The 50 SMA and the 100 SMA are likely to delay the breakout.
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XRP/USD 4-hour chart
On the downside, consolidation could lead to a breakdown if XRP ends the day under $0.55. Selling pressure could intensify after the airdrop, as investors are likely to dispose of the recently acquired tokens. Support at $0.5 is in line to keep the bears in check, but if broken, Ripple may seek another anchor at the 200 SMA.