Cryptocurrency Technical Outlook: Signs of Bearish Calm Detected... BTC, ETH, XRP Seek Rebound Opportunities

The major cryptocurrency markets have escaped last week’s sharp decline and are beginning a technical recovery. Bitcoin(BTC) successfully defended the $80,000 psychological level, Ethereum(ETH) halted its retracement at the Fibonacci support level, and Ripple(XRP) is showing signals of breaking out of its downtrend channel. All three assets are moving away from oversold conditions, suggesting a potential short-term rebound scenario.

Bitcoin(BTC): Defending $87,050… Breaking through $90,000 is a key inflection point

Current Situation Analysis

Bitcoin is currently trading around $87.05K, having rebounded from the support at $80,000 last Friday, and is now seeking direction near $87,400. The four-week downtrend has halted, and a slight rebound is underway.

Bullish Scenario: Breaking $90,000 signals further rally

If the rebound continues, the first target is the psychological resistance at $90,000. Whether this level is broken will determine if this rebound is merely a technical catch-up(dead cat bounce) or a sign of a new upward wave.

The daily RSI indicator has moved from an extreme oversold condition(below 30) to around 31. This indicates a weakening of selling pressure after reaching an extreme low. If further gains are confirmed, RSI could rise into overbought territory above 75.

Bearish Scenario: Risk of retesting $80,000

If the bearish momentum intensifies, the market may revisit the $80,000 level. Maintaining this support is crucial for the mid-term upward trend.

Ethereum(ETH): Around $2,930… forming a range between $2,900 and $3,017

Current Situation Analysis

Ethereum is trading at $2.93K. After failing to break above the trendline resistance on November 13, it declined about 18% over 8 days, but found strong support at the Fibonacci 61.8% retracement level of $2,749. Since then, it has rebounded about 7% over three days, showing recovery momentum.

Bullish Scenario: Breaking $3,017 targets $3,483

If the rebound persists, the next target is the daily resistance at $3,017. A close above this level could push the price up to the 50-day exponential moving average(EMA) at around $3,483.

Technical indicators are signaling recovery. RSI has exited oversold territory, and MACD has formed a golden cross(buy signal) on Tuesday, supporting a short-term bullish outlook. This suggests selling momentum is waning and supply-demand is balancing.

Bearish Scenario: Falling below $2,749 risks further decline

If correction deepens, maintaining the Fibonacci 61.8% retracement at $2,749 is critical. A breakdown of this support could invalidate the recent rebound as a start of a new upward wave.

Ripple(XRP): Around $1.86… entering a stable zone above the $2 psychological level

Current Situation Analysis

Ripple is trading at $1.86, having re-verified support at the lower trendline of its downtrend channel last Saturday. It then surged past the $2 psychological level and is now holding above $2.20. The 14-day rally of 14.19% indicates extreme exhaustion of the downtrend.

Bullish Scenario: Breaking $2.35 expects further gains

If the rally continues, the next resistance is at $2.35, which coincides with the 50-day EMA(around 2.37), forming a strong technical resistance zone.

The RSI is now at 47, having fully exited oversold territory. Entering a neutral zone suggests a normal correction process where supply and demand are balancing. The MACD has also formed a golden cross, reinforcing a short-term bullish bias.

Bearish Scenario: $1.82 as first support

If retracement deepens, the previous low at $1.82 will serve as the initial support. A breakdown of this level could lead to further downside toward the lower boundary of the downtrend channel.

Overall Assessment

All three major cryptocurrencies are moving away from extreme oversold conditions. RSI normalization and the formation of golden crosses indicate a weakening of bearish momentum, but a mid-term trend reversal is still not confirmed. Short-term rebounds are possible, but whether key resistance levels are broken will determine if the market can sustain a bullish trend.