Crypto Frontline

BTCUSD (Coinbase)

Source: TradingView

Calmer tones continue to dominate BTC as now the price is trading below the October 20^th high, a sign the bullish momentum weakened. We should see a break above new ATHs in order to have a confirmation the trend can further extend above $70k.

During the past week, US inflation figures and a rising USD have been major tailwinds for Bitcoin and if the market will get more worried about rising prices, volatility could spike once again. On which side is still up for debate as up until now, crypto, in general, was viewed as a proper hedge.

However, overextended valuations cap the potential upside, which leaves BTC vulnerable to sharper corrections. For the time being, though, we suspect the price is trading in a range between $67k and $60k. Until a break on either side occurs, it is possible to see BTC headed in both directions, especially as the RSI is a little above 60.

ETHUSD (Kraken)

Source: TradingView

Even though it was outperforming Bitcoin, Ether found resistance around $3,8k and has been consolidating lower ever since. The price treats a short-term descending trend line as a supply zone and as long as that will be the case, we suspect there’s scope for more losses towards the $4,400 area in the short term.

Volatility remains subdued, even though the broad crypto market is enjoying the beast seasonal period of the year. That is another sign of warning and suggests buyers are not so eager to buy at these levels.

It’s been a while since ETH did not touch the 4h chart 200 SMA and that could be a place where stronger buying interest will emerge. Traders should watch the USD and the broader risk sentiment in the following days, in order to see whether if it can foster a continuation higher. There has been a strong correlation with the stock markets and in case bearish signals will show up there, the same might happen with ETH.

LTCUSD (Coinbase)

Source: TradingView

Litecoin was one of the main surprises last week, as it is now posting a 7-day gain of 32%. From a technical point of view, the price broke above the September highs and that triggered massive short covering, combined with strong bullish interest.

For the first time since May, LTC managed to reach $300, where it also found decent sellers. With that in mind, it remains to be seen whether the price can further extend on the upside. Buyers who missed the move up should wait for the pullback towards the $240 area and see whether there is bullish interest there as well.

A breakout above the current November highs will be good news for buyers and that could mean the price might extend towards the $340 area. Litecoin is still trading below the all-time highs and investors seems to be chasing coins that have been underperforming the broader market. The price action structure suggests a bullish bottoming formation is now in place, improving the prospects for LTC in the short term.