Heading towards the end of 2021, crypto prices have continued to fluctuate, with Bitcoin and Ethereum, respectively , falling to their lowest levels in recent months.

As such, speculators are now looking for signs to show future opportunities that may arise in upcoming weeks. Below we will analyse the technicals of both markets, in order to obtain a clearer picture of where prices could be heading to, this Christmas.

Bitcoin

The sell-off in the world’s largest cryptocurrency continued to start the week, as prices of Bitcoin fell below the $50,000 level. BTCUSD hit an intraday low of $47,073 on Monday, which was its lowest level since October 1st.

This recent bear run, which began on November 10th, has seen BTC fall by over $20,000 in the past few weeks. Prices now seem to be oversold, with some longer-term Bitcoiners viewing this as an opportunity to “buy the dip”.

As you can see from the daily chart below, BTC is currently hovering just below $47,000, a level which has acted as support in the past. If you now look at the RSI, which covers a 14-day period, it will also show that the market volume is trading at 30, which historically signals relative weakness within a market.

This, along with the fact that prices are at a floor, would typically attract the attention of bulls anticipating a reversal, however if you look closer, you could potentially see that this may in fact be a “bull trap”.

BTC/USD – Daily chart

BTCUSD

Reason being is that the momentum of the moving averages still appear to be bearish, despite some earlier crosses.

There are three SMA’s (simple moving averages) on this chart, the 10-day in red, 25-day in blue, and the 50-day in green. The initial downward cross that signalled the sell-off came as the 10-day, moved downwards against the 25-day. Both then moved below the 50-day, which usually is the sign for a sustained level of bearish pressure.

Despite this, that latest cross appears to be in its infancy, and if it were to mature further, BTC prices could track the current channel of the descending triangle, all the way to the longer-term floor of $44,000.

Ethereum

ETHUSD has declined by just over $1,000 since the beginning of November, where it hit an all-time high of $4,836. Similar to BTC, prices then slipped, with Ethereum now trading in the red for its fifth consecutive week.

Looking at the weekly chart below, you can see that prices are now trading slightly above support of $3,759, whilst the RSI consolidates at the 52 level, meaning that prices are neither overbought or oversold.

ETH/USD –Weekly chart

ETHUSD

For the bears in the room, many will be anticipating a break below the current RSI floor of 52, as this could trigger a herd of sellers to enter, potentially pushing prices to the lower support point of $2,830.

Bulls on the other hand, will be paying attention to the buying power which took place the last time markets traded at the current price, and anticipate a price reversal back to resistance of $4,670. 

Trading any financial instrument on margin involves considerable risk. Therefore, before deciding to participate in margin trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney or accountant as to the appropriateness of an investment in margin trading is recommended. This electronic mail message is intended only for the person or entity named in the addressee field. This message contains information that is privileged and confidential. If you are not the addressee thereof or the person responsible for its delivery, please notify us immediately by telephone and permanently delete all copies of this message. Any dissemination or copying of this message by anyone other than the addressee is strictly prohibited.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin price sees traders balancing on the sharp end of the blade

Bitcoin price sees traders balancing on the sharp end of the blade

Bitcoin price action is slowly but surely trying to move north on price charts as traders try to continue and hold on to the momentum that started on Monday morning.

More Bitcoin News

Litecoin Price Prediction: LTC stalls at a crucial threshold

Litecoin Price Prediction: LTC stalls at a crucial threshold

Litecoin price is trying to find its footing after lifting from support reinforced at $50.50 and topping out at $55.72. This northbound move would have pushed the token out of a narrow-ranging channel. 

More Litecoin News

Dogecoin price and on-chain metrics forecast 35% rally for DOGE

Dogecoin price and on-chain metrics forecast 35% rally for DOGE

Dogecoin price has been stuck trading between two barriers since August 28. The recent attempt to push through the upper limit indicates that DOGE buyers are ready to push it higher. 

More Dogecoin News

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price seems to have undone its breakout gains seen in the last week of September. This downtrend has morphed into a tight consolidation showing no volatility.

More Crypto.com News

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP