Crypto Frontline

BTCUSD (Coinbase)

Not too much activity can be seen in the BTC price action over the last couple of days, suggesting market participants are in a wait-and-see mode. Rightfully so, there is a great deal of uncertainty around next week’s FED meeting that could impact all major asset classes.

That should be the event that breaks the tight range we’ve drawn on our chart above. Conservative traders might want to wait for more clues on the next direction. Basically, if buyers lead the price higher, that will set the tone for a decent rally into the end of 2022. Volatility is low around the holiday season, so sellers don’t want to get caught wrong-footed.

If the bottom of the range fails to act as support, Bitcoin can dive toward $16,000. Below that, the double bottom around $15,000 would be the next area where buyers are expected to enter the market. The performance in the stock market is also showing caution, which is why there is room for an upside surprise. However, it all depends on how the FED can set the market tone after the meeting.

ETHUSD (Kraken)

The same script can be seen in the case of Ether. There is a sense of balance, suggested by the triangle formation spotted on the 4h chart. Still, we should say the mood is slightly bullish, given ETH has been trading above the 200 SMA and the 20 EMA for some time.

As we’ve mentioned above, the FED meeting can be a game-changer, meaning this is not the time to have a fixed mindset. Anything is on the table for next week. A strong dip followed by impulsive buying, strong liquidations which could drive ETH to new lows for the year, or a surge towards $1,500, are top scenarios to expect.

We are now seeing a period of low volatility and once daily ranges start to wider, a lot of trading setups will appear. It would be important to respect technical levels and make sure to understand the market context.

EOSUSD (Bitfinex)

The biggest ICO on record ended up as a major disappointment. EOS is now trading for a little over $1 and it’s no longer the mega-cap token it once was. However, during the last week, we’ve seen a pump and EOS is up 12%.

This is where traders need to be cautious, because the price is now around a major bearish trend line that has been in place since April 2022. Above the current point, the 200 SMA and $1.2 are the most important resistance levels to watch.

Renewed selling pressure can drive EOS towards 80 cents, which is the 2022 low. Below that, the all-time low around 50 cents would be the level to watch. Looking at the bigger picture, this rally is not convincing at all. We should see more buying pressure and buyers willing to enter at higher and higher levels, to communicate the bear market is over or on hold.