A closer look at Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) reveals that it was basically an unproductive week for cryptocurrencies. The current prices of the cryptocurrencies are very close to their weekly opening price, which shows the consolidation we experienced.
This raises the question of why the crypto markets remained range bound during the week. Part of that could be that we are approaching the holiday season as traders and big sharks will be taking a break. Another reason is that the end of 2022 is almost here & traders are hesitant to take any long-term positions.
As for the economic front, almost all the experts agree that a recession is imminent in the USA and the rest of the world. By looking at history, a recession also brings with it decreased economic output, lower consumer spending, and high unemployment. In addition, experts are forecasting that cryptocurrencies could lose a big chunk of their value if the recession happens in 2023.
Now, let’s head into our charts and figure out what actually happened in the crypto markets and what could happen next:
Bitcoin (BTC)
Weekly Open: $17,106.65
Weekly High: $17,424.25
Weekly Low: $16,678.83
The first cryptocurrency we are going to discuss is Bitcoin which continues to dominate the #1 spot with a market cap of $330.48 billion.
On 5th December (the start of the week), Bitcoin’s (BTC) opening price was $17,106.65, from where it attempted to touch $17,424.25. However, there was a lot of selling pressure above $17,360, which ended up pushing Bitcoin (BTC) down to $16,678.83.
So from its high of $17,424.25 to its weekly low located at $16,678.83, Bitcoin (BTC) lost 4.27% of its value. Considering we are comparing the highest and lowest points in the week, it becomes clear that there were no big moves in Bitcoin (BTC) during the week. It would be more suitable to say that Bitcoin (BTC) remained rangebound during this week.
If you look at the chart of Bitcoin (BTC) above, the important resistance zone is located between $17,360 – $17,400. On the downside, the nearest and most important support zone is located near $16,800 – $16,700.
If the price continues to bounce between these levels, it would mean range-bound price movement. But if we do get a break from any of these levels, the next direction of Bitcoin (BTC) will become clear!
Ethereum (ETH)
Weekly Open: $1279.40
Weekly High: $1305.11
Weekly Low: $1218.01
The price action of Ethereum (ETH) starting from 5th December was similar to that of Bitcoin (BTC). During the Monday session, Ethereum (ETH) bulls made an attempt to cross above the $1300 level and actually made a weekly high of $1305. However, it was short-lived as the bears pushed the Ethereum (ETH) back down to its weekly low of $1218.
For now, Ethereum has recovered a little bit, but its current price levels are still below its weekly open of $1279.40. If we calculate the price movement of Ethereum (ETH) from its weekly high to low, it turns out to be 6.61% only. For a cryptocurrency such as Ethereum (ETH), these levels of volatility are very low!
Anyway, there seems to be an interesting pattern forming in Ethereum (ETH). On the upper side, we have a resistance zone located near the $1300 – $1305. And if you look below, it seems that there is a trendline from where the price continues to bounce back and target the resistance ahead.
In patterns like these, it is usually the horizontal resistance at the top which breaks rather than the trendline which is supporting the price. So based on that, there’s a chance that Ethereum could break its resistance of $1305 and add around 8% to its value.
But if the trendline from where Ethereum (ETH) is bouncing higher ends up being pierced, the next support level will be $1200.
Binance Coin (BNB)
Weekly Open: $291.8
Weekly High: $297.2
Weekly Low: $281.1
Binance Coin (BNB) opened its week at $291.8 and is currently trading below the $290 price level. Just like Bitcoin (BTC) and Ethereum (ETH), Binance Coin (BNB) also failed to form any clear during the week.
If you look at Binance Coin (BNB) hourly chart, it appears that a bearish trendline has been pushing it lower since it was trading above $300. So far, there have 8 attempts by Binance Coin (BNB) to break that trendline, only to fail every single time!
This tells us that the bearish trendline is indeed strong and will take a lot of bullish momentum to finally break it. So, for now, we wait until Binance Coin (BNB) breaks its bearish resistance and show some bullish momentum. If this happens, the next profit-taking levels will be $292, $296, $300, and $305.
Ripple (XRP)
Weekly Open: $0.3895
Weekly High: $0.3962
Weekly Low: $0.3733
The technical chart of Ripple (XRP) looks a little complex as there are two trendlines and a horizontal resistance zone as well. So let’s start by looking at each component in detail:
On the top side, we have a bearish trendline that started on the 25th of November, and till today, bulls failed to break it. Considering the length of this bearish trendline, it is indeed the dominant trendline that continues to suppress the Ripple (XRP) price.
On the bottom, we have an angled trendline which is surprisingly supporting Ripple (XRP), but its slope is towards the downside. And last but not least, we also have a horizontal resistance zone located around the $0.3950 – $0.3965.
All of these things tell us that there is a high chance we might see a break in the resistance zone (red color). After that, Ripple (XRP) also needs to break its dominant trendline, which is currently above $0.40.
If all of these conditions turn true, there’s a chance that Ripple (XRP) could add around 5% to its value and maybe, even more, depending on the market’s sentiment.
For now, investors need to keep a close eye on what’s happening with Bitcoin (BTC) as well as Ethereum (ETH). Any signs of a bullish momentum will most definitely transfer to other tokens such as Ripple (XRP) as well.
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