• Bitcoin price prints a new high for December after rallying by 7% on the week.
  • Ethereum price moved in unison with BTC and tagged a key level of interest.
  • XRP price has stayed the same, which hints the digital remittance token may be decorrelating from the market. 

The crypto market has shown strength following the US Consumer Price Index data release, which came in lower than expected. Key levels have been defined to gauge where bulls in the market may be aiming.

Bitcoin price fights back 

Bitcoin price has shown applaudable price action as the bulls have pulled off a 7% rally. On December 13, the peer-to-peer digital currency spiked to the $18,000 level after finding support from the 8-day exponential moving average. As a profit-taking consolidation occurs, traders are forced to consider the idea that the BTC rally will continue. 

Bitcoin price currently auctions at $17,784. The rally is interesting as November's US Consumer Price Index (CPI) came in lower than expected. At 7.1% for November, the index read lower than October's 7.7%. The CPI is a metric used by the Federal Reserve to measure inflation. As a result of the downtick, risk-on assets like BTC have enticed investors to bid for short-term gains in anticipation of a Santa Rally.

tm/btc/12/13/22

BTC/USDT 1-Day Chart

If the market is genuinely bullish, the next target will be the 50% retracement level at $18,245 and the 61.8% Fib retracement level just below the psychological $19,000 level. The fib levels are based on November's swing high to swing low on the logarithmic scale. 

The uptrend scenario will be void if the bears pierce through the previous congestion zone near $16,900. The bears could prompt a decline towards the yearly low at $15,476 if the bearish scenario occurred.

Ethereum price takes charge

Ethereum's price has moved in unison with its Bitcoin counterpart, returning 7% of lost market value to investors. On December 13, the bulls pierced a descending trend line which acted as resistance on three separate occasions since December 2. A classical technical analysis concept applied perfectly to the ETH price action as "the fourth touch of the trend" solidified gains for bulls in the market.

Ethereum price currently auctions at $1,317 as a profit-taking consolidation has begun near the 50% retracement level. Like BTC, the target zone was extracted from November's high at $1,680 to November's low at $1,075. The volume indicator shows an uptick in transactions, but fewer bulls are bidding for prices now than on the bullish days on November 10 and November 30. Because ETH rallied by 20% and 10% on the previous dates with more volume, conservative bullish targets should be applied until more evidence presents itself.

If the bulls can maintain their price action above the recently breached trendline, the 61.8% Fib retracement level at $1416 would be the next bullish target. ETH's market value would increase by 7% if said price action occurred. 

tm/eth/11/13/22

ETH/USDT 1-Day Chart

A breach below the recent swing low at $1,238 would void the bullish potential. If the low is tagged, ETH could decline back into the range and tackle the range low near $1,075, resulting in an 18% decrease from the current market value.

XRP price detrends from the others

XRP price witnessed no change in price despite the US CPI data release. At the time of writing, Ripple remains coiled between the 8-day exponential and 21-day simple moving averages while dually finding support on a previous resistant trend line. 

XRP price currently auctions at $0.389. The digital remittance token’s refusal to rally higher, like Ethereum and Bitcoin, shows XRP's correlation to risk assets is decreasing. Furthermore, on December 12, the XRP price subtly changed market structure by printing a lower low than the previous two swings at $0.370. Although the signs may be early, XRP price could be setting up for a drop towards the other half of November's trading range.

tm/xrp/12/13/22

XRP/USDT 1-Day Chart

If the market is genuinely bearish, a second attempt at $0.37 could catalyze a 17% decline targeting November's range low near $0.32. A breach above the previous high at $0.41 will be needed to consider a countertrend bounce, potentially toward October's broken support zone at $0.44. XRP would rise by 13% increase as a result of the bullish scenario.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

Recommended content


Recommended Content

Editors’ Picks

Hyperliquid risks breaking $40 support after correction from all-time high

Hyperliquid risks breaking $40 support after correction from all-time high

Hyperliquid risks breaks below $40.00 support after reaching new record highs of $45.72 on Monday. Increasing volumes, coupled with a sharp decline in the derivatives market's Open Interest, suggest a decline in interest in HYPE as liquidations mount.

Crypto Today: Bitcoin, Ethereum, XRP broadly stall as Middle East tensions keep markets on edge

Crypto Today: Bitcoin, Ethereum, XRP broadly stall as Middle East tensions keep markets on edge

Bitcoin’s price action remains relatively muted below $107,000 as tensions in the Middle East thaw. US President Trump leaves the G7 meeting early, calls for the evacuation of Tehran amid uncertainty in global markets.

Cardano Price Forecast: ADA eyes further losses amid triangle fallout

Cardano Price Forecast: ADA eyes further losses amid triangle fallout

Cardano trades in the red by over 1% at press time on Tuesday, extending its losses from the previous day. Shrugging off the recent announcement of the revised stake pool incentive scheme by Input/Output firm, pressure mounts over Cardano, with optimism in ADA derivatives declining.

Bitcoin falls slightly as Trump calls security advisors to deal with Iran-Israel war

Bitcoin falls slightly as Trump calls security advisors to deal with Iran-Israel war

Bitcoin price declines slightly to around $106,000 on Tuesday following a mild recovery the previous day. Donald Trump leaves the G7 summit early to return to Washington and meet with his national security team.

Bitcoin: BTC could slump to $100K amid Trump-Musk tussle

Bitcoin: BTC could slump to $100K amid Trump-Musk tussle

Bitcoin (BTC) tumbled to a low of $101,095 on Friday amid volatility in the market. The effect of the tussle between United States (US) President Donald Trump and Tesla Chief Elon Musk negatively influenced the NASDAQ and Tesla's stock price on Thursday, although both are recovering on Friday.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

BTC

ETH

XRP