Crypto Frontline

BTCUSD (Coinbase)

After almost touching the $100k on the Coinbase exchange, Bitcoin started to consolidate lower. The market is taking a break after an impulsive leg up and now traders seem to be shifting their attention to altcoins. We say that because while BTC has been flat for a couple of days, some smaller cryptos are posting large daily moves.

In terms of Bitcoin technical, we expect support at $93.5k and $90k. Further selling below that should be accompanied by bids at the 200 SMA + $85k support line. December is also a positive month for the market, especially during a year when BTC has been posting gains.

We maintain our bullish stance, but you should be aware the likelihood of deeper pullbacks is higher from now on. The main upside targets to watch are $100k, $105k, and $110k. Navigating uncharted terrain is tricky, so you should be monitoring the price action activity around psychological areas. Choppy moves will happen, given liquidity is getting thin as we approach the holiday season.

ETHUSD (Kraken)

Ether continued to rally last week and as our chart shows, the price is encountering decent resistance around the trend line we’ve highlighted several times. The $3,700 area is key for determining where this market is headed.

If buyers manage to push the price above the trend line and consolidate gains, then we will shift our attention to $4,000 – $4,100, a key resistance zone where bulls are likely to cash out some of their impressive gains. Since Nov 5^th, the market has been pushing up relentlessly and in the absence of a major correction lower, we still favor the upside.

Anything is possible in this market, so we want to point out $3,440 and $3,100 as key support areas. The price should remain bid as long as ETH continues to trade above the daily 20 EMA. RSI is close to the overbought area, meaning it has some room left to rise. The bottom line is that this isn’t a time to start calling for a major top since you will very likely get stopped out.  

XRPUSD (Kraken)

XRP is back in our weekly analysis again because the price is staging incredible returns. Up 400% since Nov 5^th, this looks like a move that should extend to new all-time highs. The RSI is trading above 90, which screams overbought, yet the market keeps pushing higher impulsively.

You can also see that trading volumes have been elevated, suggesting there are heavy buyers behind this move. It’s hard to short this market, so the best bullish approach is to wait for a pullback. The $2 area is an important support and we expect new buyers to step in there.

Traders should watch lower time frames for price action structures when determining their entry price. As things stand right now, we believe XRP will touch $3 – $3.3 during the upcoming weeks. There should be some profit-taking along the way, generating those corrections buyers currently expect.