W

elcome to another crypto market outlook for the 3rd of December!

In this edition, we'll analyze major assets such as US500, DXY, Gold, Bitcoin, and Ethereum, highlighting crucial levels and potential trade setups.

From Bitcoin approaching the $40,000 mark to ETH hovering inside a weekly resistance, and the Fear & Greed Index signaling 'Greed' for 5 consecutive weeks, 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 another week in a row, the crypto market has shown a bullish trend with BTC up by 5% and ETH by 3.5%.

Consequently, the heatmap reflects a slight bullish sentiment, contributing to upward price movements for most altcoins.

Coin 360 website showing market sentiment of Bitcoin and other cryptos
Market Heatmap

Additionally, it is important to highlight that the Fear & Greed Index is currently indicating 'Greed.'

This suggests that traders maintain an optimistic outlook and are actively purchasing crypto assets, particularly in anticipation of the upcoming ETF approval.

A website showing fear and greed index of the market.
Fear & Greed Index

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 demonstrates a significant correlation with the stock market, and this interconnection can influence its fluctuations.

Technical Analysis of US500
US500 Chart - Daily Timeframe

The overall trend for US500 remains bullish as the bulls have sustained control for another week. However, it is approaching a significant weekly resistance.

To maintain long-term bullish momentum, it is crucial for the bulls to achieve a breakthrough above $4650.0.

Chart of US500 in 1 hour time frame.
US500 Chart - 1H Timeframe

As anticipated last week, the overall bias of US500 remained bullish, and we are currently trading inside the weekly resistance.

To shift the momentum in favor of the bears, a break below the lower red trendline and the last low at $4535.0 is required.

We regularly monitor the DXY - USD Index as a standard part of our routine procedure. This is critical because the value of nearly all assets, including BTC/USD, is closely linked to the USD, which serves as the benchmark currency in the financial markets.

Chart of DXY in Daily Timeframe
DXY Chart - Daily Timeframe

DXY rejected our orange support zone at $102.5 and is currently trading higher.

Thus, we will be looking for buy setups on lower timeframes, knowing that DXY can still trade lower inside the support zone before going up.

DXY Chart - 4H Timeframe
DXY Chart - 4H Timeframe

For the bulls to take over, a break above the upper red trendline and the last major high in red at $103.9 is necessary.

Meanwhile, DXY would remain bearish as long as it is trading inside the falling red channel, and a movement inside the orange daily support is expected.

GOLD Chart - Daily Timeframe
GOLD Chart - Daily Timeframe

After breaking above the $2000.0 round number, Gold has been trading higher in a parabolic manner.

Currently, it is approaching its all-time-high at $2078.0. If broken upward, expect more upside for Gold.

Remember, Gold rises in times of uncertainty and especially war. Actually, it is not the Gold price that is going up; it is everything else going down in relevance to gold.

GOLD Chart - 1H Timeframe
GOLD Chart - 1H Timeframe

The bulls will remain in control as long as Gold is trading within the rising channel in blue.

As long as the $2078.0 all-time-high holds, the bears can still initiate one more correction, potentially pushing the price towards the lower blue trendline.

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 Chart - Daily Timeframe
USDT.D Chart - Daily Timeframe

This week, USDT.D rejected the 6.5% resistance zone and traded lower. Thus, the overall bias for USDT.D is now bearish, which reflects a bullish sentiment for the crypto market.

USDT.D Chart - 4H Timeframe
USDT.D Chart - 4H Timeframe

In the 4-hour timeframe, considering the medium-term outlook, USDT.D has fallen below the lower limit of the 6.2% range, establishing a bearish trend within the descending red channel.

To shift the momentum from bearish to bullish, a breakout above the upper red trendline is required.

In the meantime, USDT.D remains bearish, and a potential movement towards the 5.83% support is anticipated.

BTC Chart in Daily Timeframe
BTC Chart - Daily Timeframe

BTC is still overall bullish from both long-term and short-term perspectives. However, it is nearing a robust resistance and round number at $40,000.

For the bulls to remain in control, a break above $40,000 is needed. Meanwhile, the bears can still exert influence and reject the resistance zone.

BTC Chart - 4H Timeframe
BTC Chart - 4H Timeframe

In the 4-hour timeframe, for the bears to take over in the short term, a break below the last minor low at $39,250 is needed. In this case, a movement towards $38,000 would be expected.

Subsequently, for the bears to take over in the medium term, we need a break below the lower red trendline.

Meanwhile, BTC would be bullish and can still trade higher.

ETH Chart in Weekly Timeframe
ETH Chart - Weekly Timeframe

ETH continues to hover within the $2000 - $2250 resistance zone and along the upper black trendline.

To validate a robust bullish trend, a weekly candle closing above $2250.0 is essential. Such a development could potentially lead to an upward movement towards the $3000.0 red resistance zone.

Conversely, there is still the possibility of bears triggering another bearish correction.

ETH Chart - Daily Timeframe
ETH Chart - Daily Timeframe

On the daily timeframe, the bulls will maintain control as long as the recent significant low marked in red at $2083.0 remains unbroken.

However, if this level is breached downward, we might anticipate a movement towards the last local support at $1900.0.

Quotes / Advices

Traders and photographers share a nuanced relationship despite apparent differences.

Both require a keen eye for detail, timing, and the ability to interpret patterns.

While a trader navigates financial landscapes, a photographer navigates visual landscapes, seeking composition and narrative.

Both professions also require a balance of technical skill and intuition, whether mastering market analysis tools or understanding camera settings.

Closing Remarks

In summary, in the cryptocurrency market, a bullish trend persists, with Bitcoin (BTC) up by 5% and Ethereum (ETH) by 3.5%.

The market heatmap indicates a slight bullish sentiment, contributing to upward movements in most altcoins.

Analyzing traditional markets, the US500 index maintains a bullish trend but approaches significant weekly resistance at $4650.

The DXY (USD Index) rejected support at $102.5, aiming for higher levels, and Gold is trading parabolically, nearing its all-time high at $2078.

Turning to cryptocurrencies, USDT.D is bearish, reflecting a bullish sentiment in the crypto market.

BTC remains overall bullish but faces resistance at $40,000, while ETH hovers within the $2000-$2250 resistance zone.

A break above $2250 for ETH could lead to an upward movement towards the $3000 red resistance zone.

Traders should watch key support and resistance levels for potential shifts in market dynamics.


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