Crypto Investing
13 Dec 2021

Week 50 Crypto Market Update: BTC, ETH, DOT, MATIC, and AVAX

Ananda Banerjee

Yes, the crypto market has been trading in red for quite some time now. But should you be worried? Well, yes and no. While the global sentiments do not look convincing in the short-term, the long-term visual still look promising, courtesy of the Metaverse, NFT, and DeFi-linked crypto players seeing an increase in overall trading volume. 

But that’s a discussion for another day. For now, let’s look at how the Crypto Index might fare over the next few days.

Conversion Standard: 1$ = ₹75.80

Crypto Index: Languid yet Optimistic

Over the past few trading sessions, the global crypto market has been trading in a range. And it even knocked off close to 1% in terms of market cap. However, if you look at the hourly chart, there are a lot of perspectives to be gathered.

For starters, the 20-EMA line (in black) has quite easily crossed under the 50-EMA (in pink), forming a death crossover. Therefore, unless the 20-EMA line starts converging with the 50-EMA line, you might see the index going down in the near term. 

Crypto Index
Source: Trading View

*EMA- Exponential Moving Average

Short-Term View

The short-term view looks bearish unless the 20-EMA line stops diverging. However, the RSI has bounced from the 40-levels, which indicates some buying strength. And we presume that use-case-specific Altcoins are driving the buying spurts for now. 

*RSI-Relative Strength Index

For now, the key levels to consider are placed at $318005(₹2,41,04,779), which is quite a strong support zone for the crypto index, followed by one at $316867.95(₹2,40,18,590.6). If the crypto index breaks the lower support zone, there might be more selling.

If the index, currently trading at $320524.43(₹2,42,95,751.80), starts moving up, there is some immediate resistance at $320757(₹2,43,13,380.6), which also coincides with the 23.6% Fib retracement level. 

Crypto Fear & Greed Index

At present, the sentiments relevant to the crypto space are still fear-aligned. But then, as compared to the extreme fear rating of 16 witnessed last week, the ‘Fear & Greed’ index has moved up to 28. 

Well, that’s how the broader market looks for now. Let us shift our attention to the key crypto players:

Bitcoin (BTC)

Unlike the global crypto market, BTC is still trying to show signs of recovery on the hourly chart. If you look closely, the 20-EMA line is still above the 50-EMA line, and if the parallel movement persists, you might see BTC trading in a range for now.

BTC Week 50 market update
Source: Trading View

Short-Term View

At present, BTC’s short-term fate hinges on how it breaks out of the pennant, created by the ascending and the descending trendline. Currently trading at $49039.31(₹37,17,179.7), there might be a slight up move if it breaks the descending trendline. However, BTC might experience resistance at $49367(₹37,42,018.6), which coincides with the 38.2% Fib retracement level.

If it breaks the ascending trendline, which it breached momentarily and bounced back, it will experience some support at $48464(₹36,73,571.2). 

Where is BTC Headed?

The RSI seems to be moving up for now against the generic price action, thereby creating some sort of RSI divergence. If the movement holds, there might be a trend reversal on the cards, pushing BTC prices higher before the year ends. However, in that case, the key resistance levels to watch out for are placed at $49925(₹37,84,315) and $50322(₹38,14,407.6). 

Ethereum (ETH)

ETH dropped as low as $3834(₹2,90,617.2) on the 11th of December, but the Bulls quickly brought the price up to $4185(₹3,17,223) a few trading sessions back. For now, ETH is trading at $4000.38(₹3,03,228.804) and has the 20-EMA line moving under the 50-EMA line.

ETH Hourly Chart
Source: Trading View

Short-Term View

If the 20-EMA line moves lower than it is, you might see ETH shedding some more gains. However, it has two immediate support lines at $3975(₹3,01,305) and $3934(₹2,98,197.20). But then, considering the market sentiments and volatility, value buying isn’t recommended unless a specific direction is confirmed. 

Where is ETH Headed?

The three ticks hint at three consecutive lower-high formations, which might lead to a short-term downtrend. However, if ETH manages to make a high, higher than the last, it might move up to $4099(₹3,10,704.20), without any significant pullback. 

Polkadot (DOT)

Currently trading at $28.05(₹2,126.19), DOT hasn’t had all that bad a run over the past week. If you head over to the CoinSwitch trading platform, you would know that DOT moved up quite a bit over the past week, i.e., more than 8%, to be exact.

Polkadot Market Update
Source: Trading View

Short-Term View

The 20-EMA (Black) line is still above the 50-EMA (Pink) line, which means DOT hasn’t assumed a downtrend of sorts, at least not yet. While it is still consolidating, any move above the $28.35(₹2,148.93) resistance level might take DOT to $29(₹2,198.20), without significant pullbacks. 

Where is DOT Headed?

The MACD indicator shows positivity for both the MA-line and the histogram, which means DOT might move up once it’s done consolidating. And if it sheds some more gains, $27.33(₹2,071.61) might be a good value buying zone, as it coincides with the 61.8% Fib retracement line. On the upside, DOT might go up to $30(₹2,274) in the near term if it can cross the strong resistance at $29(₹2,198.20).

*MACD- Moving Average Convergence Divergence

Polygon (MATIC)

The current price movement of MATIC resembles a descending channel pattern, and we wouldn’t recommend any buying or selling positions unless it gives a clear indication of a breakout.

MATIC Week 50 Crypto Market Update

Source: Trading View

Short-Term View

Currently trading at $1.95(₹147.81), MATIC’s descending channel pattern needs a clear breakout indication. If it breaks the lower trendline, there might be a free fall up to $1.775(₹134.545) unless Bulls initiate fresh buys. However, if the upper trendline is breached, you can expect MATIC to move right up to the $2.24(₹169.79) mark. 

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Where is MATIC Headed?

MATIC looks poised for an upward move in the short to mid-term despite the consolidating price action. However, new calls can be taken only if it sustains the $2.24(₹169.79) resistance level, and only then can you expect an up move towards $2.5(₹189.50) and beyond.

Caution: MATIC has nearly completed three lower-low, lower-high formations, which might signify a short-term downtrend. Therefore, it is advisable to avoid any short-term calls unless there are any positive signs on offer.

Avalanche (AVAX)

AVAX, a token from the much-anticipated DeFi bucket, has also been consolidating. However, the 20-EMA line is still trading above the 50-EMA zone, thereby signifying solidarity in the price action.

AVAX hourly chart
Source: Trading View

Short-Term View

Currently trading at $84.97(₹6,440.726), AVAX is looking range-bound for now. However, the trend might soon get confirmed depending on how it breaks out of this short pennant pattern. Also, if it breaches the lower trend line, there is strong support for AVAX at $82.59(₹6,260.322). 

Where is AVAX Headed?

The mid-term sentiment concerning AVAX continues to be positive. Also, if it can breach the descending trendline, you can expect a fresh up-move with immediate resistance at $86.37(₹6,546.85) and $87.26(₹6,614.30) and then at $88.37(₹6,698.45). 

And that’s a wrap for today. While some players are showing signs of recovery, the overall market breadth is still range-bound, and therefore, it is not advisable to take any fresh calls. 

But if you still want to check how crypto trading works, download the CoinSwitch App and experience the same, hands-on. 

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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