As bullish momentum continues to weaken, Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are showing signs of fatigue mid-week. BTC extends its decline, trading below $106,000, while ETH and XRP have fallen below key support levels, sparking concerns about potential further corrections.
BTC Risks Further Decline If It Closes Below the 50-Day EMA
FXStreet analyst Manish Chhetri notes that Bitcoin's price surged 7.32% last week, closing above $108,000. However, Monday saw a pullback, with losses continuing into Tuesday as BTC closed below $106,000. At press time, Bitcoin hovers near $106,100.
Key Technical Observations:
- A daily close below the 50-day Exponential Moving Average (EMA) at $104,245 could trigger a deeper drop toward the psychological $100,000 level.
- The Daily Relative Strength Index (RSI) at 51 near neutral (50) reflects trader indecision. Bearish momentum would strengthen if RSI breaks below 50.
- A looming MACD bearish crossover (signal line nearing MACD line) may confirm sell signals if completed.
👉 Bitcoin's critical support levels explained
Bullish Scenario: If the 50-day EMA at $104,245 holds as support, BTC may retest its May 22 all-time high of $111,980.
ETH Breaks Key Support, Signaling Potential Correction
Ethereum failed to find support near its daily pivotal level of $2,461 earlier this week, closing below the 50-day EMA ($2,428) on Tuesday. As of Wednesday, ETH trades around $2,428.
Downside Risks:
- Continued declines could retest the June 22 low of $2,111.
- Daily RSI at 47 (below neutral 50) indicates growing bearish pressure.
- MACD lines show a tentative crossover, reflecting market uncertainty.
Recovery Potential: A daily close above $2,461 could propel ETH toward the next resistance at $2,724.
XRP Struggles at Resistance, Primed for Pullback
XRP faced rejection at its daily resistance of $2.23 on Monday, falling nearly 3% by Tuesday. Current price action lingers near $2.18.
Critical Levels to Watch:
- Sustained correction may drive XRP toward $1.96 support.
- RSI hovering near 50 shows neutral momentum—a break below would confirm bearish control.
👉 XRP's make-or-break price levels
Upside Trigger: A daily close above $2.23 could reignite bullish momentum toward the May 23 high of $2.47.
FAQ: Cryptocurrency Correction Concerns
Q1: How long might this crypto correction last?
A: Historically, mid-cycle pullbacks average 2-6 weeks, depending on macroeconomic factors and market liquidity.
Q2: Should investors buy the dip in BTC/ETH/XRP?
A: Dollar-cost averaging near confirmed support levels (e.g., BTC's $104,245 EMA) reduces risk versus speculative timing.
Q3: What indicates a true market reversal versus temporary correction?
A: Watch for: 1) Volume spikes on breakdowns, 2) Sustained closes below 200-day EMAs, and 3) Derivatives market sentiment shifts.
Q4: How does this correction compare to 2023's major pullbacks?
A: Current declines remain shallower (-12% BTC vs. -22% in Q2 2023), suggesting healthier market structure.
Q5: Could altcoins like XRP underperform Bitcoin during this phase?
A: Yes—historically, BTC dominance rises during risk-off periods as capital rotates to perceived "safer" crypto assets.
Q6: What fundamental factors could halt this correction?
A: Key triggers include: ETF inflows resuming, Ethereum spot ETF approvals, or favorable US crypto regulatory clarity.