Crypto Investing
20 Dec 2021

Week 51 Crypto Market Update: BTC, ETH, AVAX, XRP, and LUNA

Ananda Banerjee

The crypto market, replete with discussions concerning the Metaverse, NFTs, Bitcoin Mining limit, DeFi, and Elon Musk’s welcoming stance towards Dogecoin, didn’t show a lot of movement over the past week.

At the time of publishing, the market was down by almost 1%, courtesy of the global fear and mixed trading sentiments. 

Conversion Standard: 1$ = ₹75.92

Fear-Greed Index: Not so Positive

As we speak, the Crypto’ Fear & Greed’ index is firmly placed at 25, which is still 3 points below what it was a week earlier. The current index level shows that global investors are still fearful and not exactly willing to take new positions. HODLers might have a different take but the overall market breadth, for now, seems to be neutral and cautionary. 

Crypto-Index

Outlook-Bearish

A lot of credible indications reveal the bearish stance of the Crypto market. Firstly, the daily chart’s 20-EMA line (Black) has recently crossed below the 50-EMA line (Pink), hinting at a short-term downtrend. Also, the daily trading volumes are tepid and not as high as we would like.

crypto index daily chart
Source: Trading View

*EMA- Exponential Moving Average

Coming to the levels, the CIX is currently trading at $310706(₹2,35,88,799.5), which is still above the strong support line of $295511.80(₹2,24,35,255.9).

For movements higher than this, CIX will find resistance at $336868(₹2,55,75,018.6) and then at $355363(₹2,69,79,159), which coincide with 23.6% and 38.2% Fib retracement levels, respectively.

Disclaimer: Insights mentioned above are speculative—kindly DYOR for being safe.

Bitcoin (BTC)

Outlook-Bearish

If you look closely at the daily charts, there is some bearishness in the Bitcoin-USD counter. The daily trading volumes are quite low, showcasing trading skepticism. Also, the 20-EMA line has again crossed below the 50-EMA indicator, thereby marking a death crossover and some consolidation.

BTC daily chart

Source: Trading View

Note: We referred to daily charts instead of hourly charts as the market remained flat across hourly trading sessions. And the daily chart gives a better indication of the market outlook. 

Coming to the levels, the BTC-USD pair is trading at $46272(₹35,12,970.24) after breaching the immediate support level of $48626(₹36,91,685.92). However, for any movement lower than this, there is some support at $42333(₹32,13,921.36).

On the upside, which BTC might find hard to assume, there are multiple resistance levels to account for, with one at the previous support of $48626(₹36,91,685.92) followed by another one at $52520(₹39,87318.40). 

Disclaimer: Insights mentioned above are speculative—kindly DYOR for being safe.

Ethereum (ETH)

Outlook: Neutral

When it comes to the trading trends exhibited by top crypto players, ETH looks slightly more promising than BTC. On looking closely at the 4-hour ETH chart, which gives more credible indications than the hourly chart, ETH is trading at $3820(₹2,90.014.40), which is quite close to the nearest support zone of $3829(₹2,90,697.682), placed at the 61.8% Fib retracement level.

ETH 4 hour chart
Source: Trading View

If ETH moves lower from here, depending on market conditions, there might be some support at $3771(₹2,86,294.32) and then at $3699(₹2,80,828.08).

For an upside expectant, resistance levels might be at $3869(₹2,93,734.48) and then at $3909(₹2,96,771.28). Also, the ever-reliable RSI indicator has entered the oversold region, thereby hinting at the neutrality at the counter. 

Disclaimer: Insights mentioned above are speculative—kindly DYOR for being safe.

Avalanche (AVAX)

Outlook: Volatile

After moving up by close to 20% over the past week, AVAX seems to be shedding some gains for now. On the hourly chart, the 20-EMA line has recently crossed below the 50-EMA line, thereby signaling a correction of sorts. The RSI has bottomed out under 30 and seems to have flattened out for now, which further validates the consolidation. 

AVAX crypto market update
Source: Trading View

Coming to the trading levels, AVAX is currently placed at $104.72(₹7,950.34). And if it starts eroding gains further, the following support levels to look at might be at $100(₹7,592) and $92(₹6,984.64), respectively.

Also, if AVAX resumes the onward journey, it might find strong resistance at $106.82(₹8,109.77) and then at $109.32(₹8,299.57), which coincide with 0 and 23.6% Fib levels. 

Disclaimer: Insights mentioned above are speculative—kindly DYOR for being safe.

Ripple (XRP)

Outlook: Marginally Bullish

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XRP gained close to 5% over the past few trading sessions (at the time of publishing), is now consolidating. XRP is currently trading at $0.87(₹66.05), which is still above the ascending trendline, marked in black. As far as other indicators are concerned, the 20-EMA line is placed well above 50-EMA, signaling some bullishness at the counter. 

XRP week 51 market update
Source: Trading View

The RSI is hovering close to 60, which is termed as a demand zone. Also, if XRP corrects further, it might find multiple support zone at the EMA lines, trendline, and even the $0.77(₹58.45) support line. And if the up move continues, it might encounter resistance at $0.933(₹70.83).

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Disclaimer: Insights mentioned above are speculative—kindly DYOR for being safe.

Terra (LUNA)

Outlook: Bullish

After realizing gains of almost 26% over the past week, especially when the broader crypto market was trading in a range, LUNA seems to be cooling off a bit. As per the hourly chart, the trading pattern somewhat resembles an ascending channel. At present, LUNA is priced at $75.45(₹5,728.16) and quite close to the lower band of the ascending channel.

LUNA gains

Source: CoinSwitch

LUNA hourly chart
Source: Trading View

If it chooses to move down, the 50-EMA line might act as immediate support, followed by the $72.30(₹5,489) level. For any speculative move on the upside, there might be some immediate resistance at the 20-EMA line followed by one at $77.41(₹5,876.97).

Disclaimer: Insights mentioned above are speculative—kindly DYOR for being safe.

Caution: As per the chart, LUNA did give some false breakouts on the upside and, therefore, must be looked at with caution. 

Well, that’s a wrap for now. Also, if any of the mentioned patterns or insights have convinced you enough to take a look at the market, download the CoinSwitch app right away to get started.

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

writer

Ananda Banerjee

Content Writer

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