The crypto market appears to be trading in a consolidation phase. Bitcoin is holding above $16,000, but it still hasn’t shown any signs of breakouts. So, what’s next for Bitcoin (BTC) and other cryptocurrencies? Here are analyst Ann Mugoiri’s comments…
What happened in the BTC and altcoin market during the week?
While Bitcoin and other major altcoins are seeing a relief rally, selling pressure is likely to resume at higher prices. As we reported on cryptokoin.com, the recent collapse of FTX has had a significant and detrimental impact on the cryptocurrency market. Many investors are frightened and unsure of what will happen next.
However, although it may take some time, things may actually improve due to this event. According to Chainalysis, a blockchain analytics firm, crises like this have always existed in the crypto world. But cryptocurrencies have emerged stronger each time than before. Chainalysis’ research leader Eric Jardine said FTX to Mt. He came to this conclusion by comparing it with Gox.
Another topic of discussion was Grayscale. Bloomberg Intelligence exchange-traded fund (EFT) analyst James Seyffart stated that the Grayscale Bitcoin Trust (GBTC) is close to one hundred percent likely to hold the amount of Bitcoin it claims. Confirmed the liquidity of GBTC. He continued by stating that there is no redemption for Bitcoin in GBTC and hence its stability can be attributed to this fact.
Insights for BTC: Which levels matter?
Bitcoin traded below the $16,000 level last week. It is currently trading around $16,500. The immediate support at this level is around $15,500. Further down, it finds stronger support near the $15,000 levels. BTC is expected to remain range bound until the price breaks out of the range or drops below the $15,000 levels.
Momentum indicators suggest that BTC/USD is likely to drop lower, as the weekly RSI indicator is currently below the 50 level and the MACD line is below the signal line. The crypto price drops to $14,500 before trading sideways in the 15,000-17,000 range for a few days.
$1,110 is critical for ETH, the second largest crypto after Bitcoin (BTC)
Ethereum is still trading near the $1,200 level. According to the analyst, although it continues to face selling pressure at these levels, ETH is expected to remain on the border between the $1,100 and $1,300 levels. The immediate resistance at this level is near $1,250, while the critical support is near the $1,110 limit.
According to the analyst, the technical indicators on the weekly chart are currently in favor of Ethereum. Because MACD and RSI lines are bullish. If ETH/USD continues to rise, it could exit the range-bound zone and reach the $1,600 level. It could then consolidate near the $1,300 resistance or it could decline towards the $1,100 level.
Expectations for the BNB/USD pair
Binance Coin has gradually risen over the past week. According to the analyst, BNB is expected to trade in the $280-299 range in the near term unless BTC momentum improves significantly. The technical indicators on the weekly chart are supporting Binance Coin as both the Relative Strength Index (RSI) and MACD are trending upwards. If BNB/USD continues to gain, it will exit the range bound zone. It continues its upward trend towards the $300 level in the coming weeks.
Bitcoin momentum matters for XRP
XRP is trading around $0.40. According to analysts, Bitcoin is expected to remain flat in the near term until its momentum improves significantly. All of the technical indicators on the weekly chart suggest that the XRP/USD pair will continue to trade in a range until the end of the first quarter of 2022. However, if XRP/USD breaks out of the range-bound zone, it continues to rise to test the $0.30 and even $0.40 resistance levels in the near term.
$0.07-0.10 is important for the biggest meme coin DOGE
Dogecoin rebounded from support at $0.07 on Nov. 21. This indicates that the bulls are attempting to form a higher bottom at this level. According to the expert, the altcoin is expected to be between $0.07 and $0.10 in the near term unless the momentum of BTC improves significantly. The technical indicators on the weekly chart all point to consolidation for Dogecoin. Because both the MACD line and the RSI are trending downwards.
The relief rally reached $0.09 and the bulls are likely to face strong resistance from the bears. If the price breaks down from the current level, the DOGE/USDT pair will remain in the range between $0.07 and $0.09. Conversely, if the buyers push the price above the overhead resistance, the bullish momentum increases. The pair then rises to the 38.2% Fibonacci retracement level of $0.10. It could then start a rally towards the 50% retracement level to $0.11.
Last altcoin on the list: ADA
The data shows that Cardano is in a strong downtrend. The bulls broke the low below $0.30 on November 22 but are struggling to push the price up to the 20-day EMA of $0.33. If the price stays above the 20-day EMA, it could climb as high as $0.40 or even $0.50 in a few days. On the other hand, if ADA/USD fails to break the overhead resistance of $0.33 and breaks at $0.30, it could drop to the next support at $0.28 or even below it.
The downward sloping moving averages reveal that the bears have the upper hand. However, the RSI shows a bullish trend, which indicates that selling pressure may be easing. The first sign of strength will be a break above the 20-day EMA. The ADA/USDT pair is then displaying the possibility of attempting a rally to the 50-day SMA at $0.36 and then to the downtrend line.
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