We take a look at key support and resistance levels for the week of 12/23/2022. This crypto price weekly analysis focuses on Bitcoin, Ethereum, Binance Coin, and Cardano. Let’s jump into the technical analysis of some major cryptocurrencies & dissect the price action:
Bitcoin (BTC)
Weekly Open: $16,739.00
Weekly High: $17,061.27
Weekly Low: $16,256.30
Bitcoin (BTC) started the week below the $17,000 resistance zone and continues to trade below that level. However, Bitcoin (BTC) made one attempt to cross the $17,000 resistance zone on 21st December but failed to do so. This is an indication that we will see selling pressure and profit-taking once again when the bulls approach the $17,000 price level.
But if you look at the hourly technical chart of Bitcoin (BTC), an interesting development is on the horizon. On the upside, the zone around the $16900 – $17000 continues to put a cap on the Bitcoin (BTC) upside. On the downside, we have a bullish trendline slowly pushing Bitcoin (BTC) toward its nearest resistance.
So if Bitcoin (BTC) bulls cross the $17,000 and make a candle close on the hourly and 4-hr charts, then Bitcoin (BTC) could gain an additional 3.61%.
When we compare the bullish forecast of 3.61% with the holiday season, it makes sense for Bitcoin (BTC) to move up at least this bit!
Ethereum (ETH)
Weekly Open: $1183.06
Weekly High: $1237.99
Weekly Low: $1150.51
Ethereum (ETH) is also among those cryptocurrencies which have been up for the week. From its weekly open of $1183.06 to the current price levels, Ethereum (ETH) is trading with a 3% gain for the week.
In addition, Ethereum (ETH) is also showing a similar triangle pattern just like Bitcoin (BTC). In the case of Ethereum (ETH), the resistance zone is located between $1220 – $1230. On the downside, there’s also a support zone just below $1160. But to reach that, Ethereum (ETH) would first have to pierce its bullish trendline, which is pushing it higher toward the $1220 – $1230 resistance.
With the break of $1220 – $1230 resistance, the triangle pattern will become complete. When that happens, it would be wise to wait for a retest of the said resistance zone to confirm the bullish momentum. If the $1220 – $1230 resistance level turns into support, then Ethereum (ETH) could gain around 6% upside.
Binance Coin (BNB)
Weekly Open: $251.1
Weekly High: $253.9
Weekly Low: $236.8
Binance Coin’s (BNB) weekly open price was $251.1, and it is currently trading marginally below that… For now, the Binance Coin (BNB) appears to be forming a bottom after bouncing from its low of $220 last week.
There seems to be a double bottom formation in place as Binance Coin (BNB) has bounced off its support of $240 for two times. The neckline of the said double bottom formation is $252, which is also a major resistance zone. So even if we remove the double button from the equation, we can also say that Binance Coin (BNB) is stuck between a resistance ($252) and a support zone ($240).
So if we get a break of the $252 resistance (also the neckline), then Binance Coin (BNB) could gain a 5.89% upside. However, you can’t just trade Binance Coin (BNB) by looking at the technical analysis considering all the trouble the Binance exchange is going through lately.
So when you look at Binance Coin (BNB), also check any recent news regarding the said token and the parent exchange.
Cardano (ADA)
Weekly Open: $0.2660
Weekly High: $0.2694
Weekly Low: $0.2465
Cardano opened the 2nd last week of 2022 near the $0.2660 price level but is currently trading below it. During the week, the significant high was $0.2694, while the low was $0.2465.
For now, Cardano (ADA) seems to be forming a base around the $0.24 price level, which appears to be serving as a support zone. And on the upside, we have two resistance zones located around $0.2650 and $0.2700. If the $0.2650 resistance zone breaks, there’s a chance for Cardano (ADA) to gain an additional 6.96% of its value.
On the other hand, a break of $0.25 and the $0.24 support zones will open the doors to further downside in Cardano (ADA).
At one time, Cardano (ADA) was dubbed as the Ethereum (ETH) killer, but now it is sitting at #8th place among top cryptocurrencies. And if we look at Ethereum (ETH), it continues to enjoy the #2 spot with a market cap of $149.29 billion. On the contrary, the market cap of Cardano (ADA) is only $8.92 billion, which is far away from the tall claims it once made.
Conclusion
With only 1 week left in 2022, I don’t think any major moves will happen in the cryptocurrency market. If you look at the forecast for Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Cardano (ADA), the potential upside is still less than 7%.
This indicates that the volatility is low in the cryptocurrency market ahead of the holiday season. For a more volatile price action, the crypto traders will have to wait until we approach the mid of January 2023!
For now, the forecast for most of the top cryptocurrencies is bullish, which is a good sign. It also indicates that the market forces are attempting to close 2022 on a little positive note.
And for 2023, there are a lot of challenges facing the cryptocurrency markets… So a little bit of a relaxed holiday season will give a much-needed break to the crypto markets.
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