What Bitcoin and Ethereum are bringing for December!
The cryptocurrency market is experiencing a notable correction as we approach late November 2024, with Bitcoin priced around $93,400. This represents a 6% decline since Monday, amid technical indicators pointing to a troubling bearish trend. In contrast, Ethereum is displaying strength as it nears its critical resistance level.
Bitcoin faces a significant drop Price pullback anticipated for Bitcoin Bitcoin started a steep correction on Wednesday, November 28, following a record high of $99,588 reached the previous Friday. The price fell by 7%, hitting a low of $90,791 on Tuesday, before slightly recovering above $93,400.
Technical analysis indicates a concerning bearish divergence on the Relative Strength Index (RSI). While the price hit a new peak on Friday, the RSI showed a lower peak, which often signals a possible short-term price reversal.
Analyst Ryan Lee from Bitget Research predicts that Bitcoin may trade between $85,000 and $120,000 in December. A potential positive development could come from Microsoft, which is reportedly considering buying Bitcoin, pending approval from its board.
Ethereum and Ripple: Diverging Paths Despite the market correction, Ethereum remains strong, trading at about $3,420 and nearing its weekly resistance level of $3,454. In November, Ethereum ETF inflows reached a record $300 million in one day, indicating growing interest from large investors.
Conversely, Ripple is showing signs of weakness after dropping below its weekly support at $1.40. The RSI, currently in the overbought zone at 82, suggests a deeper price correction could be coming, with a potential target around $1.12.
The upcoming change in leadership at the SEC, with Gary Gensler set to leave in January 2025, may revitalize the cryptocurrency market. His likely successor, Paul Atkins, is expected to be more favorable towards the crypto sector, which could lead to a better outlook for the industry in 2025.