Crypto Market Analytics – December 17^th, 2021

 

Stagnating Market and Overwhelming BTC: Results of The Trading Week and Expert Forecasts

It seems that even the most optimistic market analysts do not insist that Bitcoin will miraculously burst to $100,000 by the end of the year. After a week of unsuccessful attempts to push BTC through the key resistance at $49,000, many traders decided to sell the asset, which led to a drop in its value to $47,150. The situation is similar in the altcoin market. All coins in the TOP-10 in terms of capitalization are now red. Only Avalanche (AVAX), which soared by a suspicious 21.75%, and USD Coin (USDC) stablecoin, distinguished themselves. And now for the details.

Bitcoin Has Become Even More Firmly Rooted in The Classical Economy and Dependent on Key Global Factors

First, concerns about the new Omicron COVID strain, and then disappointing reports of record inflation levels in the world's leading economies (the United States and the United Kingdom), influenced the value of BTC in the most predictable way. Crypto gold has fallen in price by more than $20,000 and, apparently, this is not the limit. At the moment, the Crypto Fear & Greed Index hovers at around 29, which literally means panic concern of investors and traders about the safety of their digital assets.

And according to analyst firm Delphi Digital, there are indeed reasons for concern. The current technical situation with BTC is "poor", especially after the price fell below the 200-day exponential moving average and is in the process of testing its 200-day simple moving average. Crypto analysts from Jarvis Labs recommend that traders prepare for the volatile crypto market in the first quarter of 2022. The fact is that, for example, Bitcoin's reaction to serious market cataclysms is a little lagging. If we recall the major market pullback in May 2021, then after it BTC was looking for its local bottom for another 2 months. Summarizing the analysts' data, we can say that the local bottom for BTC at the moment is the $42,000. However, the warriors from the bullish side should now think about returning the position to $ 53,000.

Protracted Ethereum Correction: Where To Look For A Breakout And When It Happens

Over the course of the week, Ethereum slowly but surely overcame resistance at $3850 and $4000, reaching a good position above the $4050 level. But the conversations did not reach the air for $4200. The coin grew to $4121, after which the trend reversed. But not everything is so sad, because now analysts claim that there are quite definite levels of resistance, overcoming which will significantly increase the chances of further growth for ETH. We are talking about the positions of $4040 and $4080, on which the main bearish forces are now concentrated.

But it still need to grow up for this levels, since Ethereum is now trading at $3833, which is below the 50% Fibonacci retracement level, built on the basis of the last rally range with a low at $3650 and a high at $4121. If crypto-silver does not roll back to $3,650 over the weekend, the new week will begin with attempts to break through the resistances at the $4040, $4080 and $4121 levels, which bring the bulls close to the current target of $ 4250.

Heroes of the week

Small cap coins have been in the spotlight this week as the impact of market disasters on their price has not been so damaging. Terra (LUNA) and Avalanche (AVAX), already known to crypto amateurs, have shown good potential. The first of these is pegged to stablecoins based on major fiat money, which is likely to have allowed the coin to remain trending amid a downhill market. By the way, the same can be seen in the behavior of other stablecoins pegged to USD. As for AVAX, its "finest hour" came on December 15, when the asset broke from the $ 78 mark to the $ 104 level. At the same time, by the end of the week it had grown to almost $ 110 per coin with a capitalization of $ 26 billion. Thus, AVAX became the fastest growing coin of the week and once again showed the weaknesses of large market assets in comparison with rapidly growing newcomers.