in

Bullish or Bearish: What Will It Be For Bitcoin And Ethereum This Month?

Bullish or Bearish: What Will It Be For Bitcoin And Ethereum This Month?


Following last month’s events, traders are more reserved and rather silent as to the predictions for December. November had many jumping for joy as they renamed the last thirty days Moonvember. Unfortunately, the moonvember vibe only lasted through the first ten days.

During the first ten days of the past month, we note that both Bitcoin and Ethereum saw tremendous increases in trading activities that resulted in all-time highs for them. Unfortunately, the market was plagued by multiple FUDs that caused it to conclude in losses for the largest crypto assets.

One notable event that preceded the dip is China’s issuance of stern warnings to its state-owned enterprises (SOEs) against involvement in cryptocurrency mining activities. Other personalities like former presidential aspirant to the United States Hillary Clinton voiced negative concerns about cryptocurrencies.

These were some of the stories that started the cryppto-wide corrections. Conditions in the industry are still not as thrilling as they were at the start of the past month and the sentiments are divided as seen in the chart below.

Source: Coin360

The global cryptocurrency market cap is 5% lower than when it started in November. Will this month be different? Judging by the Fear and Greed index, it may be hard to conclude that December will be different as the metric opened the month at 34 and is currently at 32.

Bitcoin Could See More Stability This Month

Unlike Uptober and Moonvember, there is no fittingly bullish or bearish name for December. Nonetheless, we can project the actions of the apex coin by turning to its records. Generally, this month is one of the many with price hikes as Bitcoin gains 10% on average since 2010.

The image below shows that since 2010, only four of the eleven Decembers have ended negatively for BTC. Although the four losses have nothing in common, a pattern is created when we split these months in two.

The most recent consecutive negative months were preceded by corrections in November. Considering this pattern, it is important to note that the top coin closed the past month in losses of more than 7%.

Another notable thing about the period under consideration is that the last month of the year seems to have a cushioning effect from the eleventh. For example, in 2018, bitcoin lost 32% in November and 9% in the next month. The same was seen in 2019.

Based on these observations, we may conclude that the current month will either offer stability with respect to price or little price hikes. What do the charts say? We recall that bitcoin is considered a bearish asset as suggested by the Pivot Point Standard.

The above statement is seen on the 1-day chart as it does not affect other timeframes like the 1-week. However, we note that the Moving Average Convergence Divergence (MACD) on the weekly chart is about to give off a bearish signal. It is almost impossible not to see both lines about intercepting in the chart above.

MACD on the daily chart paints a different picture as we’re about to see a bullish interception. What do these two opposing readings mean? Bitcoin may experience little surges but the uptrend will not last as long as many will anticipate. We deduce that both the market trends during December and the charts interpretation are in harmony.

Ethereum Still Enroute To $5,000

$5,000 is one of the most talked about levels when projecting Ether’s future. Last month, traders were hopeful that the second largest asset will hit this level but failed after surging to an all-time high above $4,800. Will we see this dream become reality in the concluding days of the year?

Judging by previous market actions during the last two months of the year, there could be a possibility of Ethereum hitting $5k. The image below suggests that overall, December is one of the bullish months for the asset under consideration.

We also observe that most times, the last 30 days of the year are more profitable for the second largest crypto asset compared to the previous. If this pattern continues, it safe to conclude that ETH may flip $5k.

The largest altcoin closed the preceding month at a 7% increase. Looking forward to a better performance in the next 30 days, we may expect a 10% increase as per the above observation. What do the charts say?

Ether evaded another MACD cross on the weekly chart and maintained its bullish strength. On the daily chart, the coin recovered from bearish dominance a few days ago and is on the rise. With both the charts and trends in accordance, Ether is en route to $5,000

Conclusion

The above predictions took into consideration past market actions and current chart readings to draw conclusions. Both factors are subjected to change and the predictions coming true depend heavily on market conditions remaining the same.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

What do you think?

$ADA: An Overview of the Five Most Highly Anticipated Cardano-Powered DEX Projects

$ADA: An Overview of the Five Most Highly Anticipated Cardano-Powered DEX Projects

U.S.-based asset manager company WisdomTree is listing its crypto basket exchange-traded product (ETP) on Euronext.

US-based crypto firm WisdomTree lists crypto ETP on Euronext.