Bitcoin and most major altcoins remain stuck inside a range as traders keep a close eye on next week’s macro
Bitcoin and most major altcoins remain stuck inside a range as traders keep a close eye on next week’s macroeconomic events.
The United States equities markets are headed for a down week as market participants remain cautious ahead of next week’s key consumer price index data for November.
The CPI report will be followed by the Federal Reserve’s Federal Open Market Committee meeting on Dec. 13-14 where the central bank is expected to hike rates by 50 basis points, according to the FedWatch Tool.
The outcome of the events next week could increase the volatility in Bitcoin (BTC) and result in a trending move.
After a terrible year that saw some high-profile cryptocurrency companies go bust, the bulls will expect 2022 to end on a strong note. Bears will also try to maintain their stronghold and extend the decline in the next year.
What is the path of least resistance in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
The bulls successfully held the $16,787 support on Dec. 7, indicating strong demand at lower levels. Buyers propelled Bitcoin back above the 20-day exponential moving average ($17,004) on Dec. 8.
The flat 20-day EMA and the relative strength index (RSI) near the midpoint suggest a possible range-bound action in the near term. Usually, tight range trading is followed by a range expansion, which leads to a trending move.
At times, the first breakout tends to be a fake move, hence traders could wait for a confirmation before jumping on to take the trade.
If the price breaks above the resistance zone between $17,622 and the 50-day simple moving average ($18,046), the BTC/USDT pair could signal a potential trend change. The pair could then attempt a rally to $20,000 and later to $21,500.
Conversely, if the price breaks below $16,787, the bears will try to pull the pair to the pivotal support at $15,476.
ETH/USDT
Ether (ETH) broke below the 20-day EMA ($1,254) on Dec. 7 but the bears could not sustain the lower levels. The bulls bought the dip and pushed the price back above the 20-day EMA on Dec. 8.
Buyers will once again strive to thrust the price above the overhead resistance at the 50-day SMA ($1,331). If they can pull it off, the ETH/USDT pair could surge toward the resistance line of the descending channel.
On the contrary, if the price turns down from the 50-day SMA, it could keep the pair stuck inside the range for a few days. The flat moving averages and the RSI just above the midpoint also indicate a consolidation in the short term.
The advantage could tilt in favor of the bears if the price turns down and breaks below $1,212.
BNB/USDT
BNB (BNB) closed below the $285 support on Dec. 7 but the bears could not capitalize on this opportunity. The bulls purchased the dip and have pushed the price to the 20-day EMA ($291).
The flattening moving averages and the RSI above 48 suggest a balance between supply and demand. This could result in a volatile range-bound action in the near term but the boundaries of the range are not yet defined.
If the price turns down from the moving averages, the bears will try to yank the BNB/USDT pair below $281. If that happens, the selling could accelerate and the pair may slide to $275 and later to the strong support at $250. If bulls want to gain the upper hand, they will have to push and sustain the price above $300.
XRP/USDT
XRP (XRP) turned up from the strong support of $0.37 on Dec. 7, indicating that bulls are buying the dips. This is the second occasion when bulls have defended this level, hence $0.37 becomes an important level to keep an eye on.
The 20-day EMA is flattish and the RSI is near the midpoint, implying that the XRP/USDT pair could remain stuck between $0.37 and $0.41 for some time.
If buyers drive the price above the 20-day EMA, the pair could rally to $0.41. This level may act as a major barrier for the bulls but if they manage to overcome it, the pair could pick up momentum and rally toward $0.51.
If the price turns down from the 20-day EMA, the bears will again try to sink the pair below $0.37 and strengthen their hold. If they manage to do that, the pair could decline to $0.34.
ADA/USDT
Cardano (ADA) is consolidating in a downtrend and the positive divergence on the RSI suggests that the selling pressure could be reducing.
Buyers have an opportunity to start a recovery by pushing the price above the 20-day EMA ($0.32). If they do that, the ADA/USDT pair could attempt a rally to the downtrend line. The 50-day SMA ($0.35) may offer minor resistance but it is likely to be crossed.
If bulls fail to clear the 20-day EMA quickly, the possibility of a break below the critical support of $0.29…
cointelegraph.com