BTC and several altcoins are dusting off after Federal Reserve Chairman Jerome Powell discussed the possibility of a small rate hike in 2023, but is the momentum sustainable?
The recovery looks set to begin on November 30, barring weakness in US equity markets. Buyers looking to achieve monthly closings in excess of $17,000. This suggests that the increased selling due to the FTX crisis is likely to decrease.
Normally, retail investors panic and divest their holdings in a bear market, but it was the opposite for Bitcoin investors. According to Glassnode data released on November 27, after the FTX crash, investors who held less than one bitcoin, also called shrimp, bought 96,200 bitcoins.
On a similar note, investors holding 1 to 10 bitcoins classified as crabs bought 191,600 bitcoins in the last 30 days. This shows that investors are accumulating at low levels.
Daily cryptocurrency market performance. Source: Coin360
However, a sharp recovery in Bitcoin’s price is unlikely for some time. Trading firm QCP Capital believes the Dec. 13 US consumer price data and the Dec. 14 US Fed decision will act as risk factors as many investors are “forced to repeatedly sell assets to boost liquidity.” . QCP expects the situation to change only in the second or third quarter of next year after the Fed turns around and releases liquidity into the system.
Can Bitcoin Uplift the Cryptocurrency Market? Let’s study the charts of the top 10 cryptocurrencies to find out.
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BTC / USDT
Bitcoin rallied from $15,995 on November 28 and broke the $16,910 (EMA) above the developing descending triangle on November 30.
BTC/USDT Daily Chart. Source: TradingView
A close above the 20-day EMA would be the first sign that the bears are losing their grip. BTC/Teter
The pair could then touch $17,622 and then the 50-day moving average (SMA) at $18,434. Traders are expected to defend the sector strongly.
If the price breaks from the overhead zone but bounces off the 20-day EMA, it would indicate that bulls are buying the dips. That would increase the possibility of a rally to $20,000 and then to $21,500.
Another possibility is to lower the price from $17,622. If that happens, it would suggest that the pair could consolidate between $15,476 and $17,622 for some time.
It declined from the 20-day EMA of $1,234 on November 26, but bulls ended the decline to $1,151 on November 28. This indicates an increase in demand and an indication that sentiment may be positive.
ETH/USDT Daily Chart. Source: TradingView
Buyers will push the price above the 20-day EMA and next look to break above the 50-day SMA at $1,335. If they succeed, the ETH/USDT pair may rally to the resistance line of the descending channel. This level can attract strong selling by bears, as a break above the channel may indicate a trend reversal.
To reverse this bullish stance, the bears need to defend the 50-day SMA and push the price below $1,051. The pair may then fall to the support line of the channel.
Bounced off the November 29 moving average, but bulls are struggling to break the move. This suggests that bears are likely to mount a strong challenge between $300 and $318.
BNB/USDT Daily Chart. Source: TradingView
The 20-day EMA at $292 is flattening and the RSI is just above the midpoint, indicating a balance between supply and demand. A price above $318 could turn favorable for buyers. That could pave the way for a rally to $338, where the bears could once again establish a strong barrier.
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This positive outlook may reverse in the near future if the price declines and falls below the moving average. The pair may then reject support at $258.
Bulls successfully resisted a retest of the breakout from the symmetrical triangle on November 28. This is a good sign as it shows that traders are buying dips in XRP.
XRP/USDT Daily Chart. Source: TradingView
Bounce overhead resistance was reached at $0.41 and should be noted