BTC: Technical Indicators to Eye as We Enter December

I hope you had a restful holiday weekend, because the markets certainly didn’t as volatility took crypto prices on a wild ride. Friday’s dip was followed by a turbulent weekend that closed better than expected after the price wicked down to liquidate over-leveraged positions.

Bitcoin (BTC, Tech/Adoption Grade “A-”) has bounced from its support at $53,000 to its next resistance near of $58,700.

So, does this mean the correction is over?

Not quite. Before we can consider this a bullish reversal, certain trading indicators need to show strength first.

This BTC/USDT hour chart from TradingView shows Bitcoin is breaking out to the upside from its descending channel. If the breakout succeeds — as looks likely — we could easily see BTC hit $60,000 this week.

On top of this, we need other bullish indicators to align as well, such as nice monthly close. If November closes out above its open price at $61,000, the odds of a bullish December increase significantly. BUT that would mean BTC has still some way to go in a limited time frame — less than 25 hours.

That’s Bitcoin, so what’s happening with Ethereum (ETH, Tech/Adoption Grade “A”)?

It followed BTC’s movements over the weekend and bounced. Like BTC, it’s now trading near its resistance, as well.

You can see in the ETH/USDT daily TradingView chart below that ETH has managed to break its 21-day exponential moving average (EMA) — marked as the red line — while still trading inside of the two-week old channel:

It will likely follow wherever BTC goes. But it’s important to note that other ETH indicators look more bullish than BTC.

In the meantime, we should see seasons of different altcoin categories here and there — like metaverse projects and play-to-earn (P2E) games, which have been going strong for weeks.

This isn’t a true altseason, though. These are the cryptos most likely to outperform in the short term as they have shown little regard for BTC’s price action.

Notable News, Notes and Tweets

What’s Next

The overall market will depend on Bitcoin’s price action, which currently looks more bullish than not. I would, however, wait for the monthly close to comment further. Still, uncorrelated “seasons” will come and go in the coming weeks based on categories ... no matter the market’s action.

These mini seasons are starting to look different from the last bull market four years ago, when the “seasons” were better defined and mostly based on the size of the coin’s market cap.

I personally find that quite an interesting development.

But overall, there is nothing to worry about. This has so far been the least severe correction of 2021 — the September correction saw a 37.2% dip and the summer correction marked a 54% drop. This one, meanwhile, is currently sitting at just a 20% pullback.

That’s not even mentioning that after every correction this year, Bitcoin emerged stronger than before.

Billions are pouring in crypto as we speak. The number of investments in this space is unprecedented.

In fact, projects desperate to gain dominance are providing free money and resources to almost any developer who wants to build on their chains.

We’ve never seen anything like it in the history of technological advancement.

It’s an exciting time for the crypto sphere. So, hang on tight and keep checking back with Weiss Crypto Daily for your latest updates and analysis.

Best,

Marija Matić

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