Technical indicators flash mixed crypto signals
Bitcoin (BTC) is edging lower, holding above $87,000 on Tuesday after two days of gains that pushed it to a weekly high of $89,228. Despite growing expectations for a December rate cut by the Federal Reserve, the crypto market is showing signs of technical weakness.
Bitcoin ETFs listed in the United States saw $151 million in outflows on Monday, reversing last week’s brief inflow streak. Institutional sentiment remains cautious, with uncertainty over whether ETF demand will rebound.
Technically, Bitcoin’s RSI is approaching oversold territory, while the MACD continues to flash a sell signal. BTC remains below key EMAs—50-day ($101,737), 100-day ($106,143), and 200-day ($105,802)—indicating a deteriorating structure.
A daily close above $90,000 could revive bullish momentum toward $100,000, but a break below $83,000 risks a slide under $80,000.
Ethereum (ETH) is trading below $2,900 after failing to reclaim $3,000. A Death Cross has formed as the 50-day EMA crosses below the 200-day EMA, reinforcing bearish sentiment.
The RSI has broken its uptrend and sits at 35. If it continues to decline, ETH may retest support at $2,632. A MACD crossover could trigger a buy signal and support a rebound above $3,000.
XRP is trading below its 50-day EMA at $2.38, with confluence resistance at $2.52. RSI rejection below the midline suggests downside risk, unless $2.28 resistance is broken.
However, the MACD has issued a buy signal, and futures Open Interest (OI) has surged to $4 billion, up from $3.28 billion on Sunday. Rising OI reflects increased retail demand and risk appetite, potentially supporting a bullish breakout.
With the Federal Reserve’s December meeting approaching, market bets on a final rate cut this year are rising. According to CME Group’s FedWatch Tool, there’s an 81% chance of a 25 basis point cut, lowering the rate range to 3.50%–3.75%.
Only 19% of traders expect rates to remain unchanged. A rate cut would likely boost investor appetite for risk assets like Bitcoin and altcoins.