Crypto Markets Cool Down as Traders Book Profits Amid Overbought Conditions

Bitcoin, Ethereum, and Ripple are facing near-term corrections as last week's double-digit rallies lose momentum. The pullback reflects traders booking profits amid overbought conditions.

Bitcoin is stuck below $80,000, a psychological threshold that has been acting as resistance. It trades at around $78,760 on Wednesday, maintaining its bullish bias after last week's 23% rally. However, the Relative Strength Index (14) near 80 suggests overbought conditions and a stretched advance.

Ethereum is also consolidating below $2,500, testing the 50% retracement level at $2,476. The major altcoin has been sustaining a bullish bias, but momentum remains strong with the RSI at 75, hovering in overbought territory. A confirmed breakout above $2,500 could extend the ETH rally toward the 78.6% Fibonacci retracement level at $3,031.

Ripple is facing downside pressure near the $1.50 psychological mark, down 5% so far this week. The immediate support for XRP aligns with the 200-day EMA at $1.3822, guarding the downside to the $1.2700 support zone. A decisive daily close above $1.50 would be needed to reinstate the rally and target the November 21 low at $1.8209.