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Key Moments

  • Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) each showed losses of more than 4% by Monday press time, signaling a weak start to December.
  • Key downside levels in focus included $80,600 for BTC, $2,623 for ETH, and $1.90 for XRP, with technical indicators pointing to mounting selling pressure.
  • Comments from Bank of Japan Governor Kazuo Ueda about potential rate hikes coincided with the latest sell-off, raising concerns over funding conditions and carry trades.

Macro Backdrop Weighs on Crypto Sentiment

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) began December on a distinctly negative note, each registering losses of more than 4% by Monday press time. The three largest cryptocurrencies by market interest were under renewed selling pressure, with traders eyeing potential declines toward $80,000 for BTC, $2,100 for ETH, and $1.90 for XRP.

The latest wave of risk-off behavior coincided with remarks from Bank of Japan (BoJ) Governor Kazuo Ueda, who stated that potential interest rate increases could be considered if the economic outlook continues to unfold as anticipated. Such a move could lift borrowing costs and adversely affect carry trade strategies, adding pressure across risk-sensitive assets, including cryptocurrencies.

Bitcoin Outlook: Technicals Suggest Deeper Pullback Risk

Bitcoin was trading below $87,000 by Monday press time, with price action on the daily chart shaping up for a possible bearish marubozu candle. The intraday decline extended the retreat that followed last week’s retest of the $92,800 area.

On the technical front, the Relative Strength Index (RSI) on the daily chart stood at 33, turning lower toward oversold territory after last week’s brief recovery. This shift indicated a renewed wave of supply. A sustained move with RSI below 30 would point to a more prolonged downside phase for BTC.

The Moving Average Convergence Divergence (MACD) indicator also reflected weakening momentum, transitioning from an uptrend to flirting with a potential move below the red signal line. Such a development would generate a fresh sell signal.

For now, sellers are primarily focused on the $80,600 support area from November 21. If the broader cryptocurrency complex fails to find a new bullish catalyst, Bitcoin could revisit the April 7 trough at $74,508.

Conversely, if an event such as a US Federal Open Market Committee (FOMC) decision to cut interest rates emerges, easier financing conditions could support a rebound in BTC toward the $90,000 region.

AssetRecent ContextKey Support LevelsPotential Upside Levels
Bitcoin (BTC)Trading below $87,000 after rejection near $92,800$80,600 (November 21), $74,508 (April 7)$90,000 on potential rate-cut catalyst
Ethereum (ETH)Down 5% from resistance trendline on daily chart$2,623 (November 21), $2,111 (June 22)Overhead trendline near $3,000
Ripple (XRP)More than 4% lower, extending prior 2% loss$2.00 psychological level, $1.90 (June 22)Resistance trendline near $2.20

Ethereum Under Pressure as Supply Overwhelms Buyers

Ethereum was down about 5% by Monday press time from a resistance trendline on the daily timeframe, setting a negative tone at the start of the week. This weakness put the supply area near $2,800 at risk of giving way.

A decisive daily close below the November 21 low at $2,623 would signal a confirmed range breakdown, opening the door to a deeper slide toward the June 22 low of $2,111.

Mirroring Bitcoin, Ethereum’s RSI hovered at 34, while the MACD line threatened to drop beneath the signal line, leaving ETH precariously positioned. Both indicators pointed to deteriorating momentum and the potential for further downside.

On the upside, any recovery in buying interest could see ETH revisit the downward-sloping resistance line near the $3,000 area.

XRP Slides Toward Key Psychological and Historical Supports

XRP extended its recent losses into Monday, falling more than 4% and building on a 2% decline recorded on Sunday. The token used for cross-border transactions was trading close to the $2.00 psychological threshold, where sellers were targeting the $1.90 support level defined on June 22.

Daily-chart momentum gauges reinforced the bearish narrative. The RSI stood at 40, indicating growing selling pressure, while the MACD was moving toward the signal line in what could become a bearish crossover. Such a move would strengthen the case for a more persistent downtrend in XRP.

On a more constructive note, if buyers manage to defend the $2.00 area, a rebound could develop toward a resistance trendline drawn from the October 6 and November 10 peaks, currently located near $2.20.

Bitcoin, Altcoins, Stablecoins: Common Market Questions

What is Bitcoin?

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.

What are altcoins?

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.

What are stablecoins?

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.

What is Bitcoin Dominance?

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.

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