Crypto Frontline

BTCUSD (Coinbase)

Bitcoin is starting to show signs of recovery and we say this because last week the price managed to exceed the Nov 28th high. Higher highs and higher lows are favorable for bulls and since Christmas is getting close, we expect the recovery to continue. 

Some resistance might be found around the 4h chart 200 SMA and the falling trend line. Above, the resistance lines we mentioned a week ago remain in play: $98,500 and $108,300. Traders must also not forget that this week we have the FOMC on Wednesday, an event that can shake up risk sentiment across the board. 

The central bank is likely to meet expectations, since the goal is always to prevent volatility from rising as a result of policy decisions. In case there won’t be major news around the event, we expect BTC to continue the recovery and any dip should be buyable. 

On the downside, we need to see the price holding above $84,000 and the bottom line of the parallel channel highlighted in our chart. We keep a bullish stance while the market continues to respect this structure. 

ETHUSD (Kraken)

Similar to Bitcoin, Ether price action is also developing inside a parallel channel. Sentiment seems to be on a better footing in this case, given the price has already retested the 200 SMA on the 4h chart and it is close to the bearish trend line. 

Should the market sentiment continue to improve, ETH has a high probability of breaking higher. In that case, our first line of resistance would be $3,350. Above it, $3,600 is another meaningful area to watch. 

Since the holidays are close are liquidity usually thins out, traders should expect mean-reverting price action formation. Still, we keep a bullish tilt and we think each dip is buyable as long as we don’t break the parallel channel to the downside. As things stand right now, we could see a break upside the channel, which is again a bullish price action development. 

LTCUSD (Coinbase)

Litecoin is showing signs of improvement, given the price treated the $80 area as a support zone. That’s an important swing point, since the market reacted to it substantially 2 times in November. 

When there is high buying activity around such levels, traders must pay close attention since they can find low-risk risk high-reward setups there. The price is already above the daily 20 EMA and seems likely to edge higher. 

Further bullish momentum is the most favored scenario at this point and we see the first target around $87. Above that, the $90 level + daily 200 SMA should act as a cap. Strong selling might resume in 2026, when traders get back from the holidays, but in the meantime, there is no reason to de-risk, as long as the market doesn’t have major news to price in. 

This week, we want to see if the market will treat the daily 20 EMA as support on pullbacks. That’s an important bullish confirmation.