Key Points
- Bitcoin, Ethereum, and Ripple have successfully defended crucial short-term support levels.
- The US Federal Reserve’s recent 0.25% interest rate cut and 2025 hawkish projection triggered a decline in Bitcoin’s value.
Bitcoin, Ethereum, and Ripple, three major digital assets, have managed to defend their short-term support levels against a backdrop of declining values. This comes in the wake of the US Federal Reserve’s recent 0.25% interest rate cut and its hawkish projection for 2025, which led to a drop in Bitcoin (BTC)‘s price to $100K.
Bitcoin’s Defense and Potential Rebound
Since the 12th of December, Bitcoin bulls have been defending the $100K mark, with the sell-off following the recent Federal Open Market Committee (FOMC) meeting easing at this psychological level, thereby confirming it as a support. The 100-day EMA (exponential moving average), which has halted past Bitcoin dumps since October, aligned with the channel lows, making the $98K-$100K range a strong short-term support for Bitcoin.
If this support holds, the mid-range of $104K and upper level of $108K-$109K could be achievable. However, a breach below the support could lead to further decline, making $90K and $85K reachable for bears. The recent decline was also driven by a liquidity hunt, which was currently concentrated at $102.5K, $105K, and $108K levels.
Ethereum and Ripple’s Price Predictions
Ethereum, the leading altcoin, has been consolidating between $3.5K and $4K since the start of December. Similar to Bitcoin, it dropped from $4.1K but bounced at the $3.5K range-lows. If the range-low holds, a move higher to $3.7K and $4K could be possible. However, if the channel’s support cracks, Ethereum bears could pull the altcoin down to $3.3K or $3.1K.
Despite a 10% drop, Ripple held above its Q4 trendline support and could be the key level to watch for the rest of 2024. Bulls could aim for a $2.8 level or push higher to the 2021 cycle high of $3.3 using the support as a springboard. However, a crack below it could empower short sellers to push Ripple lower to $2 or $1.6.
Despite defending key levels, the potential market trend reversal to the upside for these top cryptocurrencies could be affected by likely low trading volume during the Christmas period.
