Crypto Frontline

Weekly Crypto Analysis November 29 – December 5th, 2021

Weekly Crypto Analysis November 29 – December 5th, 2021
November 28
15:27 2021

BTCUSD (Coinbase)

BTCUSD technical analysis

Source: TradingView

Things were rather balanced for Bitcoin until the Friday selloff occurred and now the token is about to end another week in the red. Fears related to a new strain of the coronavirus put all financial markets under pressure and cryptocurrencies were not spared.

What’s even more important to note is that now Bitcoin is down more than 20% from the all-time highs, suggesting the lack of buying interest. Other smaller tokens have been favored, and this keeps BTC in a grim picture.

The key area around $53k is next to watch, as that is where the September high is located. If sellers pierce through it, we could see Bitcoin continuing to weaken towards the $46k area, where the daily 200 SMA is located.

In the short-term, although the seasonality favors BTC, we won’t be able to switch our view until the price will manage to break and hold above the daily 20 EMA. Selling is contained thus far but once Monday kicks in, market participants will get active again and that’s when we could see whether sellers can drive the price further lower impulsively.

ETHUSD (Kraken)

ETHUSD technical analysis

Source: TradingView

Even though the selling frenzy did impact Ether, we can’t notice any major changes in the price action structure, which is why if the sentiment will improve over the upcoming days, this token has the potential to rebound stronger.

However, for now the mood is rather balanced and the price trades inside a range between $3,950 and $4,450. The lower side of the structure capped the downside so as long as that’s still the case, a bottoming formation could form.

The price should break above the 20 EMA on the 4h chart and that could be an early catalyzer for more buying stepping in. Also, keep in mind that as we get close to the holidays, price volatility will gradually drop, but there might be a few days during which daily swings are wider.

AVAXUSD (Bitfinex)

AVAXUSD technical analysis

Source: TradingView

Some of the altcoins that were major outperformers have been hit hard, and one of them is AVAX. The price dropped from $40 in less than 4 days, which shows there had been many participants rushing to liquidate their exposure.

Right now the price has settled around the daily 20 EMA and whether buyers will keep the downside contained can determine the next direction. A dip below the current weekly lows might signal a continuation lower, towards the $80 area, where a prior September high is located.

Avalanche is the 11th largest cryptocurrency in the world and witnessed an impressive rise over the last several months. Its architecture consisting of three individual blockchains, scalability, and high transaction output have been incentivizing investors, but as prior occurrence had shown, the price can’t move up in a straight line.

Outperformance in one direction can be followed by sharp pullbacks and at this point, the token is vulnerable to more losses. However, it’s been volatile and could remain that way, which means more potential trade setups in the near term.

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