Crypto Frontline

BTCUSD (Coinbase)

Bitcoin is slowly grinding higher and recently managed to reach a new ATH little above $106k. We are now seeing the price consolidating lower on the 4h chart, suggesting the market is unable to sustain the momentum.

It’s the last full week of trading for 2024 and so traders are already adjusting their books to limit exposure before holidays kick in. Also, we want to point out that this period is positive for crypto.

We have some data left to digest, with the most important one being the FOMC meeting on Wednesday. The biggest fear is that the Fed will change its tone to hawkish, as inflation could surprise on the upside during the upcoming months.

BTC is bullish while above the $100k – $96k area where a cluster of support levels can be spotted, as our chart shows. We will shift to a mildly bearish stance only if the price breaks and holds below $96k. To the upside, $110k seems like a good target for this week, considering daily ranges get narrow. But, as we’ve said, it’s important to see what the FOMC might bring for the risk sentiment.

ETHUSD (Kraken)

Ether momentum seems to be weakening and we say that because the price was unable to touch a new high. Even though the daily 20 EMA acted as support, in tandem with the broken trend line, that doesn’t seem to be enough to stimulate buyers.

In our view, the $4k – $4.1k is a key resistance area to overcome and only after that happens, we could see further bullish momentum driving the price toward the $4.5k resistance. Ether has been bullish for the past month, but that wasn’t enough to push the market above the March 2024 highs.

There’s time for that to happen by the time the year ends, although volatility will shrink and buyers will have less power to push the price higher. We are now stuck in between the resistance zone mentioned above and the $3.5k – $3.6k support. Let’s see which one breaks because that will give us a clue about where the market is headed.

DOGEUSD (Coinbase)

Even though we don’t advise trading shitcoins, these cryptocurrencies give us a sense of the broader risk sentiment. Dogecoin almost touched the 2021 highs but it is now seen consolidating lower. Traders are probably taking some profits off the table, after an impressive move up.

Be aware that there is no fundamental reason backing such elevated prices, so at some point, DOGE will be worthless again. We see little support around the daily 20 EMA, suggesting a weak bullish reaction.

If the price continues to weaken, the first line of support comes at 34 cents. Further selling below will push DOGE towards 22 cents, another important demand area on the chart. The markets have moved up a lot, and now it is time to reconsider which coins deserve rich valuations and which ones don’t. This one is definitely one to dump, especially if you already managed to bank some gains.