Over the past week, the cryptocurrency market fell by more than 11%. The capitalization of digital assets tested an important support level at $3.05 trillion. This level is the maximum of the previous cycle (recorded in November 2021). The fall was accompanied by abundant liquidations, which will reflect well on the bullish macro trend in the future. The negativity appeared after the Fed meeting. The regulator made it clear that a pause in interest rate cuts was expected. At the same time, fears of a second wave of inflation in the US (similar to the 1970s) increased. Judging by the current volumes, a local rebound to $3.33 trillion is expected.
🔴 Bitcoin (BTC)
The fears of the previous week were justified and the asset went into correction. It turned out to be deeper than expected. The key support level is at $92,000. If the asset breaks it, we should expect an acceleration to $87,000. In the next couple of days, the price will calm down, as the weekend trading volumes are noticeably falling, which will give the coin a “rest”. At the moment, the price went below the Bollinger Band, which is a signal for a local upward bounce. Short-term traders can try to catch a rebound to ~$99,000.
🔴 Ethereum (ETH)
The coin failed to gain a foothold above $4000. Following BTC, the asset flew into correction. The key level is at $3000 – it is both the psychological support level and the level of 200 MA. Large purchases are already noticeable, so the target for the next few days for short-term traders is $3500 – $3550. For medium-term traders, the optimal zone for position completion is $2800 – $3000.
🔴 Aptos (APT)
After testing the psychological level of $10, a rebound to the zone of $11.50 – $12 is expected. The stock has gone beyond the lower Bollinger Band, which gives a signal to short-term traders to buy/fix short positions. To open a position, it is worth waiting for the formation of the Morning Star candlestick pattern on the daily chart, and there should be increased volume on the Doji candlestick.
🔴 S&P 500
After the hawkish Fed, the index fell into a deep correction of 3.3%. SPX tried to close the price Gap, which was formed in early November this year.
It is this level that will be the key level for next week – 5782 points. There is a high probability of next week’s candlestick with a “doji” pattern.
🔴 Nasdaq
Like the S&P 500, the Nasdaq index fell 3.6%. There are no important economic dates expected before the end of the year that could significantly affect the price. However, Congress must pass a budget to avoid a government shutdown. And the chances of that are getting slimmer as Trump is pushing to repeal the national debt ceiling by January 30, 2027. Republicans are in favor, and Democrats are against. The key level for the index is 20,675 points.
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