We are in the last month of the year. This is not the best period for trading. During the last month of the old year and the first month of the new year, I would expect consolidation rather than trending. This makes trading tricky.
In this review, I will skim through various coins.
In the last review two weeks ago I have pointed to the $13 – $15k area as the level for BTC to consolidate before any further rally.
The last review may be found here: Nov 29, 2020: BTCUSD and Crypto Market Review
Two weeks have passed and BTC has still neither significantly broken the ATH nor consolidated in the area I have pointed to. The ATH is more tagged than broken. I still think the $13 – $15 area is more probable now than breaking to the upper levels.
This is presented in the chart below. Please refer to my last review for more details on the FIB.
Why would the retracement be healthy?
BTC has made a rally to the ATH leaving many altcoins behind. Even the recent ETH and XRP pumps have not brought the price anywhere near to their ATHs.
It was the case in the past that BTC retracing after the pump allowed for alts to reach the new levels. Starting from the major alts like XRP, BCH to the low cap coins.
This is a strange coin. It dropped out of nowhere and instantly became more valuable than Bitcoin. Nevertheless, the chart provides some information about the future price.
On the monthly chart, we may see that the price got rejected from the tail of the monthly candle.
This rejection was supported by the bearish Order Block on the weekly as per the chart below.
The weekly also shows the distance from the current level to ATH and there is room for another 66% in case of the price expansion. Personally, I think this month the price will not break through the bearish weekly Order Block and will consolidate.
I would bet this coin is being watched by everybody since the last pump to $0.8 two years ago.
I have posted an in-depth review on 22/11 on how the coin has reversed and what is the mechanics behind the current pump.
You can find the market insight here: Nov 22, 2020: XRP-USD Review
This text will be the extension to that review.
The week has not ended yet but it is most probable that the weekly chart will close below the previous week’s low. This is not good for the bulls.
The chart below presents the current price action with two levels which were defended and the third level which is the next logical resistance. For bullish continuation, I would like to see XRP NOT getting there. I would like to see XRP weeklies closing above $0.45.
XRP daily chart.
There are a couple of things pointed out on the Daily chart for XRP:
– “Equal lows”. When these form they are a #1 target for the price and the same happened this time. There are some exceptions during the bull run when they are ignored but not this time ???? Now the price will go lower next week and the next target is the wick low at $0.45600. You may also see the Equal Low example for the LINK further down this review.
– The “up arrow” points at the $0.45600 level. This is the next level to be broken now. If XRP is bullish then I would like to see the closes above this level for the future weekly candles.
– The “down arrow” points at the volume. There is a huge volume associated with the recent swing high. This is not good for the bulls. There needs to be a swing low formed now with a decent volume before any pump. The higher the swing low forms – the better for the continuation. This is why I would like the price NOT to reach “Level 3 to be defended”.
I have been posting charts for LINK on my channel on the HyperTrader Discord server.
Starting from the left you may see an Equal Lows example.
Moving on to the right of the chart you may see the daily bearish Order Block. This OB is confluent with the weekly bearish OB (not shown on the chart).
The price has rejected hard from there and found support on the $11.5000 level. The range has formed now (clearly seen on the weekly). There are BUY and SELL zones marked on the chart above the range high and below the range low respectively.