Cryptocurrencies weekly technical outlook - December 17.

The overall cryptocurrency market kept falling last week, however, the selling pressure eased and bearish momentum slowed down. The most popular coins were declining with a much steeper pace compared to the previous week’s crash. A surprising shift in the market cap and trading volume has been noticed, signalling that long-term crypto investors started to reshuffle their p[ortfolios. That might indicate a new bullish wave to come across the cryptocurrencies market in the nearest future. Some of the coins had completed the bullish reversal technical pattern on shorter timeframes which is also positive for the upcoming week. Important technical levels are in focus of the market players with further appreciation more likely than a downside continuation.

BTC/USD: Bearish.

Bitcoin charted new local lows last week, declining as low as $3215.2, according to Bitfinex crypto exchange. BTC/USD had two failed attempts to recover last week, testing the exponential moving average with the period of 55 bars on the H4 chart below. That period is ruffly correlates with EMA21 ion the daily timeframe, that we indicated in our previous technical outlook. In addition, the bullish weakness and inability to recover towards crucial technical resistance forced us to adjust the median trendline, connecting latest lows before the market crash (October 12) with highest rates during the recent bullish retracement (November 18 and December 1). As a result, we’ve got another descending resistance which represents the second barrier for the bulls before pointing to a reversal formation. As long as both resistance stand, the sell-highs trading strategy should be the most lucrative for BTC?USD speculators. Aggressive traders should consider shorting the most popular cryptocurrency right from the current levels as there’s an interesting picture in two oscillators - Relative Strength Index and Williams Range Price. The first one is hovering below the 50% mark, pointing to further slide, while the second one had almost reached the overbought levels, showing that the bullish momentum is exhausted and the bears should take the market under control with heavy selling pressure to persist in the upcoming days. Conservative traders should wait for Bitcoin to retrace deeper before assessing the long-term technical outlook. Anyway, selling-high would be also preferable strategy, the only question is in depth of a potential bullish correction.

Cryptocurrencies weekly technical outlook - December 17.


ETH/USD: Neutral.

The similar situation was noticed for the third largest cryptocurrency, taking into account the trading volume. Etherium is also bearish from the technical point of view in the H4 chart (below)m however, there are some preliminary signs that bears started losing the momentum to push ETH/USD further South. First, MACD has a serial bullish divergence with its lines pointing to higher lows while the price charted lower lows. Second, the ADX indicator shows a certain slowdown of the bearish strength with the main line staying well below 20 thresholds. Three events should happen before traders should start buying ETH/USD: the price has to cross EMA55 resistance (91.6999 currently), MACD lines should cross zero level, and ADX -DI line (red) has to cross +DI line (blue), signalling the change in the trend. Wait-and-see trading approach is more likely so far.

Cryptocurrencies weekly technical outlook - December 17.


USDT/USD: Bullish.

Tether took the leadership of the trading volume after Bitcoin during the last weekend. A huge part of 22.17% of the total trading volume was given exactly for Tether while the coin managed to hold the fifth position in the market cap rating among major cryptocurrencies. The daily chart below shows a huge triangle which is a bullish continuation pattern. The nearest target for the bulls is placed around $1.0500 which is more than 5% to go for the nearest future. Such a lucrative momentum could be played out with the only condition to be performed by the price: it has to break through the horizontal static resistance (blue line on the chart) which is placed around 0.9961 currently. The likelihood of such scenario is rather large as the price does not retrace far from the resistance, hovering around that level recently. That bullish breakthrough is just a matter of time, and some additional fundamental triggers should work out in order to push Tether price for a bullish surge. The buy-and-hold strategy applies.

Cryptocurrencies weekly technical outlook - December 17.


XRP/USD: Bullish.

Ripple has already reversed the technical outlook into bullish on shorter timeframes. The H1 chart below shows clear signs of XRP/USD being supported recently. The first sign came from the Bollinger Bands indicator with an enlarged period of 55 hours when the price failed to break its lower line on Friday, December 15. The second factor was that the price breached BB middle line, which divides the uptrend from downtrend perspective. Although the bulls did have a failed test of the upper BB range, testing $0.3050 highs on Saturday, we still suggest the coin to appreciate further this week. Several bearish whipsaws might be in place, however, they should be used by active traders to buy dips, as the overall technical outlook turned bullish for Ripple, at least in the short-term perspective.

Cryptocurrencies weekly technical outlook - December 17.


EOS/USD: Bullish.

EOS had completed the reversal bullish pattern as the one-hour chart turned positive. An uptrend will be still on the table as long as the ascending trendline stands as the defensive support levels for the bulls. An additional level to monitor is the exponential moving average with the period of 55 hours. The fact that the price is well above this blue curve shows the market intention to continue the upside momentum. Both supports have to be used by traders to enter the market with long positions. Although the Relative Strength index went off its overbought levels, the bullish scenario is more likely because the oscillator still holds above its 50% level, which has to be monitored for entry levels as well. The nearest targets are $2.0961 (December 12 high) and $2.1733 in extension (December 9 top).

Cryptocurrencies weekly technical outlook - December 17.


LTC/USD: Bullish.

Despite the lack of growth in the market cap compared to other cryptocurrencies, Litecoin managed to perform the lowest weekly decline among all major coins. Moreover, the second largest 24-hours change was noticed exactly for LTC/USD, losing the leading position to Bitcoin Cash. The technical outlook turned bullish even on the H4 chart, in contrast to other cryptocurrencies which performed positively only on H1 timeframe so far. Parabolic SAR, as well as the ADX indicator, showed a strong buy signal recently. The first technical tool is confirming the bullish continuation as its dots jumped below the price as early as on Friday. The ADX shows a more powerful uptrend to come shortly as all of its lines are placed in the correct order for the bulls and main black line indicates strong momentum, crossing the 20 thresholds. The nearest target of $27.858 looks like an easy nut to crack, while the rest of the upper range is free of any significant technical resistance until $35.877, the highest close rate since November 28. Therefore, we would not be surprised if Litecoin will take the lead in an upcoming bullish rally in the cryptocurrency market.

Cryptocurrencies weekly technical outlook - December 17.

See also:
Weekly Forex technical forecast January 14 - 18.
Weekly Forex technical forecast January 14 - 18.
14.01.2019
Technical analysis