After an interesting year in which some high-profile crypto currency companies went bankrupt, the bulls expect 2022 to end on a strong note, while the bears may try to protect their strongholds and prolong the decline next year. So, what is the path of least resistance in Bitcoin (BTC) and Ethereum (ETH)? Let’s study the graphs of cryptocurrencies to find out!
Trying to make an impact on Bitcoin, the bulls successfully held on to the $16,787 support on December 7, and in this case it may be a sign that there is strong demand at lower levels. On December 8, buyers pushed Bitcoin above the 20-day exponential moving average level of $17,004. The 20-day EMA and the relative strength index (RSI) near the midpoint can be considered an indicator that a sharp move is unlikely in the near term. December expansion may be followed by a December expansion, which usually leads to a trend in price movement that continues within a narrow range.
However, if the price of the cryptocurrency Decays above the resistance zone between $17,622 and the 50-day simple moving average of $18,046, the BTC/USDT pair could signal a trend change. The pair can then make an attempt to raise to $ 20,000 and then to $ 21,500. On the contrary, if the price falls below $ 16,787, the bears may try to pull the pair to the main support located at $ 15,476.
Ethereum fell below the 20-day EMA level of $1,254 on December 7. But the bears lost the fight to protect the lower levels. The bulls bought ETH from lower price levels and pushed the price above the 20-day EMA on December 8. In addition, buyers may once again try to push the price above the general resistance of $ 1,331, which is located at the 50-day SMA. If they can achieve this, the ETH/USDT pair may rise towards the resistance line of the descending channel. Contrary to the assumption, if the Ethereum price declines from the 50-day SMA, the pair may trade within the December for a few more days. It is noted that the RSI just above the midpoint also indicates a consolidation in the short term.
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