elcome to another crypto market outlook for the 2nd of January!
In today's outlook, we will delve into the current state of the crypto market.

BTC has successfully breached the confines of its weekly range, and USDT.D has broken below a crucial support zone. These developments suggest a potential surge in bullish sentiment within the crypto market.

Additionally, we will cover five altcoins (ARB, XEC, HBAR, DUSK, and XLM), emphasizing their key levels and potential trading setups.

Are you ready?

Today, we will cover the following topics:

1- USDT.D and BTC Analysis
2- 5 Altcoins Analysis
3- Quotes / Advices
4- Closing Remarks

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).

USDT dominance daily chart showing that it is currently bearish pushing towards the next support zone
USDT.D Chart - Daily Timeframe

After breaching the 5.63% support, bears have taken control, and we anticipate additional downward movement towards the 5.2% support.

Bearish dominance will persist as long as the 5.63% resistance holds.

USDT dominance is bearish trading inside a falling channel.
USDT.D Chart - 4H Timeframe

In the 4-hour timeframe, bears will maintain control as long as trading occurs within the bearish channel outlined in red.

For a shift in momentum from bearish to bullish, bulls need to secure a breakout above the last major high marked in red at 5.77%.

Bitcoin daily chart showing the overall bullish direction inside the rising wedge pattern.
BTC Chart - Daily Timeframe

After surpassing the $40,000 resistance, BTC has displayed bullish behavior, now approaching the upper boundary of the orange wedge pattern.

As it nears the $48,000 resistance zone, we anticipate the possibility of bears initiating a correction.

Bitcoin 4h chart showing that it recently broke above the $44,500 structure.
BTC Chart - 4H Timeframe

In line with my previous market outlook, we've been monitoring potential buy setups around the lower boundary of the red symmetrical triangle.

BTC has rejected the lower red trendline and experienced upward movement. This week, BTC successfully breached the $44,500 previous major high. Consequently, as long as this support remains intact, we anticipate a movement towards the $48,000 resistance.

5 Altcoins Analysis

Let's start with ARB. After successfully breaking above the $1.35 resistance zone, ARB experienced upward movement in a parabolic fashion.

However, today ARB encountered resistance at a significant high marked in gray at $1.8.

To sustain bullish momentum, a daily candle closing above $1.8 is required. Conversely, if the $1.8 level holds, there is potential for a significant correction back to the $1.35 support, initiated by the bears.

ARB daily chart rejecting a resistance zone $1.8
ARB Chart - Daily Timeframe

Turning our focus to XEC, this particular altcoin has been in a consolidation phase, confined within a narrow range bordered by our $0.000032 support and $0.000042 resistance.

To sustain bullish control and potentially initiate a macro bullish trend, a weekly candle closure above $0.000032 is imperative for the bulls. This level acts as a pivotal threshold for long-term momentum.

XEC weekly chart trading inside a narrow range.
XEC Chart - Weekly Timeframe

On the daily timeframe, XEC has maintained an overall bullish stance, operating within the confines of the ascending broadening wedge pattern outlined in red.

To shift the momentum and provide an opportunity for the bears to take control, a decisive breach below the last significant low marked in orange at $0.0000365 is imperative.

Should this occur, it would anticipate a subsequent movement toward the $0.000032 support level.

XEC daily chart sitting around a strong resistance zone and upper bound of a wedge pattern.
XEC Chart - Daily Timeframe

In line with our prior analysis, HBAR successfully surpassed the $0.07 resistance, resulting in an upward price trajectory.

At present, HBAR finds itself positioned near a formidable resistance level at the key round number of $0.1. To affirm and sustain bullish momentum, a prerequisite is a daily candle close above $0.1.

Conversely, should HBAR experience a decline below the recent low identified in red at $0.0835, this would signify a shift in momentum from bullish to bearish, potentially prompting a downward movement toward the $0.07 support. 

HBAR daily chart trading inside a rising channel and currently retesting a strong round number $0.1.
HBAR Chart - Daily Timeframe

Analyzing DUSK, the altcoin has exhibited a consolidation pattern within the boundaries of our identified range, fluctuating between $0.1 and $0.25.

Presently, DUSK is positioned in proximity to a resistance zone. To assert control and establish a bullish trend from a broader perspective, a pivotal requirement is a weekly candle closure surpassing the $0.25 mark. This would signify a potential shift in market dynamics favoring the bulls.

DUSK weekly chart rejecting a strong resistance zone at $0.25.
DUSK Chart - Weekly Timeframe

Examining the daily timeframe for DUSK, it's apparent that the bullish momentum prevails, with control retained by the bulls as long as the recent low in red at $0.18 remains unbreached.

A potential scenario would involve a move towards the $0.15 support if the mentioned level is broken downward.

DUSK daily chart showing that it is currently bullish as long as the last major low holds.
DUSK Chart - Daily Timeframe

XLM is currently experiencing a consolidative phase within a tight range, particularly around the resistance level at $0.138.

The bullish scenario for XLM involves a prerequisite daily candle close above $0.138, which, if achieved, could pave the way for a potential upward movement towards the $0.18 mark.

XLM daily chart hovering inside a narrow range.
XLM Chart - Daily Timeframe

Conversely, in the event of bearish momentum taking control, a decisive break below the recent significant low marked in orange at $0.12 is required.

Such a scenario could signify the initiation of a substantial correction phase, potentially leading to a downward movement towards the previous low at $0.118.

XLM 4h chart forming a classic head and shoulders pattern around a resistance zone.
XLM Chart - 4H Timeframe

Quotes / Advices

Trading and wave surfing share similarities in navigating unpredictable environments.

Both require skill, timing, and adaptability to changing conditions. Traders, like surfers, analyze market patterns and trends, aiming to catch profitable waves or market movements.

Both activities demand a balance of patience and decisiveness, as mistimed actions can lead to losses or wipeouts.

Successful participants in trading and surfing harness experience to read signals, manage risks, and ride the highs while navigating the lows.

Closing Remarks

In summary, the sentiment in the cryptocurrency market is being gauged through the examination of USDT.D and BTC.

For USDT.D, the breach of the 5.63% support has resulted in bearish control, with an anticipated further decline towards the 5.2% support.

Turning to BTC, the cryptocurrency has displayed bullish behavior after surpassing the $40,000 resistance, nearing the upper boundary of an orange wedge pattern.

Shifting focus to specific altcoins, ARB has seen upward movement but encountered resistance at $1.8. Sustaining bullish momentum requires a daily close above $1.8.

XEC is in a consolidation phase within a narrow range, necessitating a weekly close above $0.000032 for bullish control.

HBAR has surpassed the $0.07 resistance but faces a critical level at $0.1. Bullish momentum hinges on a daily close above $0.1.

DUSK is consolidating between $0.1 and $0.25, with a bullish trend requiring a weekly close above $0.25.

Finally, XLM is consolidating around the $0.138 resistance. A daily close above $0.138 could pave the way for an upward movement towards $0.18.

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