- Bitcoin, Ethereum, and XRP started December with over 4% losses, testing key support levels amid renewed selling pressure.
- Macro signals, including potential interest rate hikes, are intensifying market caution.
As December begins, the cryptocurrency market is off to a bearish start, with Bitcoin, Ethereum, and XRP all facing significant losses. A combination of macroeconomic signals and renewed selling pressure has pushed major digital assets lower, challenging key support levels.
Bitcoin Under Pressure, Eyes $80,000
Bitcoin slid over 4% on Monday, trading below $87,000 and raising concerns of a deeper correction. The drop follows last week’s retest of $92,800, highlighting a renewed wave of selling. Market indicators suggest further downside risk with RSI sitting at 33, moving toward oversold territory, while the MACD shows signs of a potential bearish crossover.
If Bitcoin fails to regain momentum, bears could target the $80,600 support from November, with the possibility of revisiting April’s low of $74,508. On the upside, any positive catalyst, such as a U.S. Federal Reserve interest rate cut, could push BTC back toward the $90,000 mark.
Ethereum Struggles Near $2,800 Support
Ethereum (ETH) mirrored Bitcoin’s downturn, dropping roughly 5% to test the $2,800 support zone. A daily close below the November 21 low of $2,623 would confirm a breakdown, opening the path to $2,111, the June low.
Similar to BTC, Ethereum’s RSI at 34 and MACD indicators suggest growing bearish pressure. A rebound remains possible if buyers defend key support, potentially driving ETH toward the $3,000 overhead resistance trendline.
XRP Clings to Key Psychological Level
XRP also faced increased selling, falling over 4% and hovering near the $2.00 psychological mark. Bears are eyeing the $1.90 support level, while RSI at 40 and a potential MACD crossover indicates continued downside pressure.
If XRP bulls manage to hold the $2.00 level, the token could see a short-term recovery toward the $2.20 resistance trendline, formed by connecting October and November highs.
Macro Factors Amplifying the Sell-Off
The decline comes amid warnings from the Bank of Japan regarding possible interest rate hikes, which could increase borrowing costs and pressure carry trades. Combined with market sentiment, these macro signals have contributed to a cautious start for digital assets this December.
Investors will be closely watching whether these key support levels hold or if a deeper sell-off could take shape, potentially defining the market trajectory for the month ahead.
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