elcome to another crypto market outlook for the 11th of December!
In this edition, we'll go over major assets such as US500, DXY, Gold, Bitcoin, and Ethereum, highlighting crucial levels and potential trade setups.
From Bitcoin hovering around an overbought zone to ETH breaking above a yearly resistance, and the Fear & Greed Index signaling 'Greed' again, this article covers it all.
Are you ready? I am!
Market Heatmap and Fear and Greed Index
To initiate my research, I delved into the analysis by examining the market heatmap, which provided a comprehensive overview of the entire cryptocurrency market.
For the past month, the cryptocurrency market has exhibited a bullish trend, with BTC registering an 11.39% increase and ETH showing a 9.18% gain in the past week.
As a result, the heatmap indicates a prevailing bullish sentiment, influencing bullish movements across most altcoins.
Additionally, it is crucial to highlight that the Fear & Greed Index currently signals 'Greed.'
This indicates that traders maintain an optimistic outlook and are actively acquiring crypto assets, especially in anticipation of the upcoming ETF approval.
US500, DXY and Gold analysis
We consistently monitor the US500 index to assess the current market sentiment.
This practice is crucial because the cryptocurrency market often exhibits a significant correlation with the stock market, and this interconnection can impact its fluctuations.
In the second week, the US500 continues to hover around a robust resistance level.
For the bulls to maintain control and sustain upward momentum from a long-term perspective, a daily candle close above $4650.0 is imperative.
Conversely, the bears retain the potential to exert downward pressure on the price.
On the 4-hour timeframe, the US500 is currently confined within a range, forming a rising wedge as highlighted in red.
The bulls will retain control unless there is a break below the recent low at $4543.0.
We consistently monitor the DXY - USD Index as a standard part of our routine procedure.
This is crucial because the value of nearly all assets, including BTC/USD, is closely tied to the USD, which serves as the benchmark currency in the financial markets.
The DXY has rejected our orange support zone at $102.5 and is currently trading higher.
At present, we anticipate a bullish continuation, targeting the $105.0 resistance level.
For the bulls to take control, a break above the upper red trendline and surpassing the last major high marked in red at $104.2 is necessary.
Meanwhile, the DXY retains the potential to trade lower, possibly retesting the orange support once more. During this period, we will be actively seeking new short-term buy setups.
This week, Gold faced resistance at its all-time high of $2078.0 and experienced a subsequent decline.
Nevertheless, Gold maintains an overall bullish trajectory from a long-term perspective, trading within the confines of a rising channel highlighted in brown.
Currently, it is in the process of retesting a robust support level at the significant round number of $2000.0.
For the bulls to regain control in the short term, a crucial factor would be a break above the last major high highlighted in orange at $2025.0. Should this occur, an anticipated movement toward the all-time high of $2078.0 would be expected.
Conversely, there remains the possibility of Gold retracing within the support zone, potentially reaching the $1980.0 mark.
USDT.D, Bitcoin and Ethereum analysis
As a standard practice, I initiate my analysis with USDT.D as it serves as a key indicator of traders' sentiment.
USDT.D provides valuable insights into whether traders are optimistic, suggesting increased investment in cryptocurrencies, or pessimistic, indicating a shift towards stablecoins.
USDT.D has remained within a support zone throughout the entire week.
To sustain bearish control, a prerequisite would be a daily candle closing below 5.63%. In such a scenario, an anticipated movement towards the next support level at 5.2% would be expected.
In the 4-hour timeframe, to shift the momentum from bearish to bullish, a breakout above the last major high highlighted in red at 5.88% is imperative.
Meanwhile, USDT.D continues to exhibit a bearish trend and retains the potential to break the support level downward.
Similar to USDT.D, BTC is currently consolidating within a narrow range near the upper boundary of the red channel.
The dominance of bulls will persist unless there is a breach of the last low on the 4-hour timeframe.
On the 4-hour timeframe, for short-term bearish control, a drop below the recent minor low at $42,850 is essential.
Should this occur, there could be an anticipated move towards the lower red trendline around $40,000, presenting an opportunity to identify trend-following buy setups.
This week has been significant for ETH as it successfully breached the weekly resistance at $2250.0.
Consequently, we anticipate a bullish continuation towards the upper boundary of the orange wedge pattern and the $3000.0 level.
On the daily timeframe, bullish control will be sustained as long as the recent significant low identified in red at $2220.0 remains unbroken.
However, a breach of this level could signal a potential movement towards the last local support at $1900.0.
Quotes / Advices
Traders and accountants share fundamental financial expertise, emphasizing analytical skills and attention to detail.
Both professions require a profound understanding of financial markets, with traders executing strategic investments for returns, and accountants ensuring precise record-keeping and compliance.
Decision-making is integral to both roles, as traders optimize investments while accountants offer financial insights.
Risk management is paramount, with both professionals navigating uncertainties to protect organizational interests.
In summary, the cryptocurrency market has displayed a bullish trend in the past month, with notable gains in BTC and ETH.
The market heatmap reflects prevailing bullish sentiment, influenced by positive movements in most altcoins.
The Fear & Greed Index signals 'Greed,' indicating traders' optimistic outlook, especially in anticipation of ETF approval.
The US500 is near a robust resistance level, requiring a daily close above $4650.0 for sustained upward momentum.
The DXY (USD Index) is trading higher, with a bullish outlook aiming for the $105.0 resistance level.
Gold faces resistance at $2078.0 but maintains a long-term bullish trajectory, retesting support at $2000.0.
USDT.D serves as a key sentiment indicator, remaining within a support zone.
BTC consolidates near the upper boundary of a channel, with bullish dominance unless a breach occurs.
ETH breached weekly resistance at $2250.0, indicating a potential bullish continuation towards the upper boundary of an orange wedge pattern and $3000.0.