Bitcoin and altcoins are beginning to flash signals of a potential trend change, but a handful of downside r
Bitcoin and altcoins are beginning to flash signals of a potential trend change, but a handful of downside risks remain.
Non-farm payrolls in the United States rose by 263,000 in November, exceeding economists’ expectations of an increase of 200,000. Analysts believe that the numbers remain hot and do not allow much scope for the Federal Reserve to slow down its aggressive rate hikes.
This is contrary to Fed Chair Jerome Powell’s remarks delivered at the Brookings Institution where he said that the central bank could reduce the pace of rate hikes “as soon as December.” That triggered a sharp rally in risk assets. After the latest jobs report, the market participants will closely watch the Fed’s comments and decision in its Dec. 13 and Dec.14 meeting.
The Fed’s decision may also affect Bitcoin (BTC), which remains in a firm bear grip. Coinglass data shows that Bitcoin’s monthly returns in November of 2018, 2019, and 2021 were negative and that was followed by a further fall in December.
Will history repeat itself and Bitcoin decline again in December or will buyers come out on top and push the price higher? Let’s study the charts of the top-10 cryptocurrencies to gain some insight.
BTC/USDT
Bitcoin soared above the descending triangle and the 20-day exponential moving average ($16,949) on Nov. 30. This is the first indication that the downtrend could be ending.
The 20-day EMA has flattened out and the relative strength index (RSI) is just below the midpoint, indicating a balance between supply and demand. This equilibrium would shift in favor of the bulls if they thrust the price above the overhead resistance at $17,622.
If buyers sustain the price above this level, the BTC/USDT pair could pick up momentum and rally to the 50-day simple moving average ($18,349). This level may again act as a huddle but is likely to be crossed. The pair could then start its northward march toward $21,500.
If bulls fail to propel the price above $17,622, the pair could remain range-bound for some more time.
ETH/USDT
Ether (ETH) continues to trade inside the descending channel pattern but the bulls are attempting to tilt the short-term advantage in their favor. Buyers drove the price above the 20-day EMA ($1,245) on Nov. 30, suggesting demand at higher levels.
The bears will again try to stall the recovery at the 50-day SMA ($1,335) but the likelihood of a break above it is high. If that happens, the ETH/USDT pair could rally to the resistance line of the channel. This level may prove to be a major roadblock for the bulls.
Alternatively, the failure to push the price above the 50-day SMA may create an opening for the bears to pull the pair back below the 20-day EMA. The pair could then give back its recent gains and drop to $1,151.
BNB/USDT
BNB (BNB) bounced off the moving averages on Nov. 29 but the bulls could not clear the overhead barrier at $300. This indicates that the bears are selling on relief rallies.
The price dipped back below the moving averages on Dec. 2 and the bears are trying to pull the BNB/USDT pair below $286. If they can pull it off, the pair could decline to $275 and thereafter to the strong support at $258.
On the contrary, if the price turns up from the current level and breaks above $306, it will suggest that buyers are attempting a comeback. The pair could then attempt a rally to $338.
In the near term, the flattish moving averages and the RSI near the midpoint, indicate a range formation.
XRP/USDT
XRP (XRP) again failed to break above the overhead resistance of $0.41 on Nov. 30 and Dec. 1, indicating that the bears are vigorously defending the level.
The XRP/USDT pair has slipped below the 20-day EMA ($0.40) and the bears will now try to pull the price below $0.37. If they do that, the pair may extend its stay inside the large range between $0.30 and $0.41 for a few more days.
On the other hand, if the price turns up from the current level or $0.37, it will suggest buying on dips. The bulls will then try to propel the price above the 50-day SMA ($0.43) and start an up-move to $0.51.
ADA/USDT
Cardano (ADA) is consolidating in a downtrend. The bullish divergence on the RSI suggests that the selling pressure could be reducing and a recovery may be on the cards.
If the price climbs above the 20-day EMA ($0.32), the ADA/USDT pair could pick up momentum and attempt a rally to the downtrend line. The bears are likely to mount a strong defense at this level.
Contrary to this assumption, if the price turns down from the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling on rallies. The pair could then again drop toward $0.29.
DOGE/USDT
Dogecoin’s (
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