A quick look at the top 10 cryptocurrencies reveals that most of them were down for the week. And there are a lot of good reasons why the cryptocurrency market is down as a whole… For starters, the situation with the demise of FTX is getting more intensified as new revelations emerge.
In addition, Binance had a brief period of trouble where it had to suspend withdrawals of a specific stablecoin. Although the withdrawal facility was restored within a few hours, it did send jitters to the crypto market.
Another thing that is worrying the market is whether Binance will also go down, just like the FTX. For now, Binance’s CEO claims that they have enough funds to back all of the customer’s funds with a 1:1 ratio.
If we look at the macroeconomic landscape, there are worries that the US interest rate will touch 5.1% during next year. This would mean a stronger USD and weaker stocks… We all know that a downtrend in the stocks and a stronger US Dollar will directly translate to further downside in the cryptocurrencies.
In short, things are still pretty heated up for crypto as we approach the end of 2022… So without wasting time, let’s head over to our technical charts and see what transpired in the cryptocurrency markets for the week. And hopefully, we could be able to get some sort of forecast for what’s ahead for the coming week as well.
Weekly Open: $17085.05
Weekly High: $18387.95
Weekly Low: $16805.00
At the time of writing this, Bitcoin (BTC) is in the process of making a new low for the week. The start of this week was positive as Bitcoin (BTC) went from $17085.05 to its weekly high of $18387.95.
However, the $18,400, which was once serving as support, had turned into resistance when Bitcoin (BTC) crossed that level on 9th November. So when Bitcoin (BTC) attempted to touch the same level once again, there were a lot of sellers which pushed Bitcoin (BTC) down very hard.
For now, BTC is in a downtrend even for the short term and is trading below its 50 SMA and the 200 SMA. The nearest support level we have is located around $16700, so there’s a chance that Bitcoin (BTC) might attempt to form a bottom here (only for the short term).
In addition, the 50 SMA and the 200 SMA have yet to make a bearish cross… So there’s still hope that Bitcoin (BTC) might turn around and turn bullish once again. But if the $16700 support breaks, the next support levels are located at $16000 and $15,700.
It is hard to forecast anything about Bitcoin (BTC) as even the economic front is very jittery right now… So it seems wise to pay close attention to the nearest support and resistance levels for now and notice how Bitcoin (BTC) reacts.
Weekly Open: $1263.00
Weekly High: $1352.72
Weekly Low: $1183.37
During the first few days of the week, Ethereum (ETH) was positive, just like Bitcoin (BTC). On 14th December, Ethereum (ETH) ended up making a new weekly high of $1352.72. Once again, Ethereum (ETH) followed the suit of Bitcoin (BTC) and other cryptocurrencies by turning bearish.
As mentioned before, there are a lot of negative catalysts for the crypto market and very little good news (if any). So, for now, Ethereum (ETH) is bearish for the short-term as well as the long-term and is currently trading close to $1183 (weekly lows).
If you look at the charts, the closest resistance for Ethereum (ETH) is located at $1350. Similarly, the closest support is located near $1160 – $1150. In addition, there is also a bearish cross of 50 SMA and 200 SMA on the 1-hour chart. All of this points towards a potential bearish pressure in ETH.
For now, there is a high chance that ETH will either test its nearest support or the resistance zone. But looking at that bearish cross, the most probable case will be a move down to test the support located at $1160 – $1150.
Weekly Open: $284.5
Weekly High: $285.6
Weekly Low: $240.6
After the fall of FTX, things have become very heated for Binance, which is the #1 exchange in the world. For starters, Binance released a report related to its proof of reserves, but the market is not happy with it at all. According to the market perception, the report lacks key information, which has raised fears in the market.
In addition, around $8 billion worth of withdrawals were made at over the last few days. This is a sign that markets are operating under the perception of fear and not in the mood to trust any exchange.
As a result, Binance Coin (BNB) has been trading in a bearish trend since the start of December 2022. A closer look at the Binance Coin (BNB) hourly chart tells us that it is trading below its 50 SMA and the 200 SMA. So Binance Coin (BNB) is bearish for the short, medium, and even the long term.
For now, investors can only hope that Binance Coin (BNB) will stop at one of the support levels located at $220, $200, and $180.
Weekly Open: $0.09266
Weekly High: $0.09555
Weekly Low: $0.07965
Right now, there is a big difference between the 50 SMA and the 200 SMA on the Dogecoin (DOGE) hourly chart. Considering there is a bearish cross, it seems that even the Dogecoin (DOGE) is at the mercy of sellers.
The bearish trend in Dogecoin (DOGE) started on 7th December, according to the moving average analysis. But if we look at the daily chart, we actually had a bullish cross on 11th November. Considering that MAs are lagging indicators, we will have to stick with the hourly chart for now.
For now, the next important support zones for Dogecoin (DOGE) are located at $0.075, $0.07, and $0.06. And just like the rest of its peers, Dogecoin (DOGE) is under the spell of bears for now.
Looking ahead, there’s a chance that the crypto markets might turn a little bullish once we enter the 2023 (next year). However, that’s still around 2 weeks ahead, and the macroeconomic situation is looking very dim. So it seems that the only fair play is to be safe and to pay close attention to the support/resistance levels.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the cryptocurrency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal, or accounting advice.