elcome to another crypto market outlook for the 14th of December!
In today's market analysis, we will delve into the current state of the crypto market. BTC has initiated a short-term correction phase, and USDT.D is still situated around a critical support level, prompting us to exercise caution.
Additionally, we will go over five altcoins (DOT, SOL, XVG, XRP, and NEAR), focusing on their key levels and potential trading setups.
Are you ready?
USDT.D and BTC analysis
As usual, I always start my analysis with USDT.D as it serves as an indicator of traders' sentiment. USDT.D reflects whether traders are optimistic (investing in cryptocurrencies) or pessimistic (shifting towards stablecoins).
This week, USDT.D rejected our 5.63% support and traded higher.
It is currently retesting that support zone, so we expect the bulls to take charge soon.
To keep the bears in control, a daily candle close below 5.63% is needed.
In the 4-hour timeframe, the bears took control by breaking below the 5.88%. For the bulls to regain control and initiate the bullish scenario, we need a break back above the 5.88% structure.
Meanwhile, USDT.D would remain bearish and might continue trading lower.
As per our previous analysis last week, BTC rejected the upper boundary of the red channel and traded lower.
Yesterday, BTC rejected the lower boundary of the channel and the $40,000 mark.
The bulls will continue to be in control unless a daily candle closes below $40,000.
In the 4-hour timeframe, exactly the opposite of USDT.D as usual. The bears took control by breaking below the last major low in red.
For the bulls to regain control, we need a break above the $43,150 structure. In this case, a movement towards the upper boundary of the red channel and $48,000 would be expected.
Meanwhile, until the bulls take over, BTC can still trade lower to test the lower red trendline again.
5 Altcoins Analysis
Let's start with DOT. As per our analysis last week, DOT broke above the $6.0 resistance and traded higher, reaching the $7.0 level as expected.
This week, DOT also broke above the $7.0 resistance, and now we anticipate bullish continuation towards the $8.0 mark.
The bulls will continue to be in control unless the $6.85 level is broken downward.
Shifting our attention to SOL, after breaking above the $50.0 resistance, SOL traded higher and reached the $80.0 resistance.
Currently, SOL is positioned around the resistance zone. Therefore, for the bulls to maintain control, a breakout above $80.0 is required.
In the 4-hour timeframe, the bulls will continue to be in control unless the last low in orange at $64.0 is broken downward.
In such a scenario, a movement towards $50.0 support would be anticipated, where we will be looking for new buy setups.
Examining XVG, it has been confined within a narrow range forming a flat channel in red.
For the bulls to assume control from a medium-term perspective, a breakout above the upper bound of the range at $0.0044 is necessary.
Meanwhile, as XVG approaches the lower bound of the channel and the $0.0028 demand zone, we will be looking for new short-term buy setups on lower timeframes.
After breaking above $0.55, the momentum on XRP has shifted from bearish to bullish, and we anticipate a continuation of the bullish trend towards the upper bound of the orange wedge pattern and the $1.0 round number.
In the daily timeframe, we are currently in a corrective phase, trading inside the falling red channel.
For the bulls to regain full control, a break above the last major high at $0.7 is necessary.
Meanwhile, XRP could still trade lower to test the lower bound of the red channel and the $0.55 support. In this scenario, we will be on the lookout for new short-term buy setups.
NEAR has been trading within a substantial range, fluctuating between our $1.0 support and $3.5 resistance.
This month, NEAR rejected the $1.0 level and traded higher.
For the bulls to establish control from a long-term perspective, a weekly candle close above $3.5 is required.
NEAR is expected to maintain an overall bullish stance as long as it operates within the confines of the rising broadening wedge pattern highlighted in orange. A potential upward movement towards $3.0 is anticipated.
To shift the momentum in favor of the bears and trigger a substantial correction phase, a decisive break below the last major low marked in orange at $2.1 is necessary.
Quotes / Advices
Backtesting is crucial in trading as it allows investors to assess the viability of a trading strategy using historical data.
By simulating trades against past market conditions, traders can evaluate the strategy's performance, identifying strengths and weaknesses.
This process helps refine and optimize strategies, ensuring they align with historical trends and demonstrating their effectiveness before risking real capital.
Backtesting provides insights into risk management, potential drawdowns, and overall profitability.
In summary, our focus remains on USDT.D, which serves as an indicator of traders' sentiments.
USDT.D is retesting a support zone, with a daily close below 5.63% needed for bearish control.
BTC's daily close below $40,000 could shift control to bears.
DOT is bullish, having broken above $7.0, with continued control expected unless $6.85 is breached.
SOL broke above $80.0, and for bulls to maintain control, a breakout above this level is crucial.
XVG is within a narrow range, needing a breakout above $0.0044 for bullish control.
XRP is bullish post $0.55 break, but a break above $0.7 is necessary for full control.
NEAR is bullish within a rising wedge, requiring a weekly close above $3.5 for sustained control.