Weekly Analysis of BTC, ETH, and the Stock Market (Dec 16, 2024)
An overview of BTC, ETH, XAUT, and S&P500 charts, and the current cryptocurrency market dynamics.
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Bitcoin (BTC)
Bitcoin has set another all-time high, climbing to $106,630. If the flagship cryptocurrency maintains its growth, it could gradually drive up the value of alternative coins as well.
In case the market undergoes a local correction, BTC could briefly dip to the support ranges of $97,500–$99,500 or $94,100. Buyers are expected to take advantage of such conditions to strengthen their long positions.
Predicting Bitcoin’s next target is challenging, as prices have entered uncharted territory. The $110,000 mark, often referred to as a “psychological level,” is likely to become the next focal point, with a high concentration of profit-taking limit orders.
BTC/USDT H4 Chart. Source: WhiteBIT
Ethereum (ETH)
Ethereum remains firmly in an uptrend, nearing a challenge of its yearly peak above $4,093.
Given the ongoing positive market sentiment, $4,300 could be the next milestone for buyers. The broader objective of surpassing the all-time high of $4,878 appears achievable over the coming months.
The extent of any potential short-term pullback is likely to be shaped by the support zones at $3,650–$3,820 and $3,515.
ETH/USDT H4 Chart. Source: WhiteBIT
S&P 500 (SPX)
The S&P 500 stock index remained relatively stable last week, with no notable activity. The asset continues to move within a long-term upward channel, showing no major corrections, which suggests that this trend is likely to continue.
Support levels at $5,600–$5,900 provide a plausible range for a technical retracement. If long positions continue to grow from this range, the goal for the week ahead could be a fresh record high above $6,099.
SPX W1 Chart. Source: TradingView
Tether Gold (XAUT)
The $2,685–$2,747 resistance zone proved challenging for buyers once again, leading to a minor pullback in XAUT to $2,670. A second retest of this level will play a pivotal role in deciding whether the growth trend continues and new highs are reached.
Should the third attempt also fall short, XAUT's price may drop further to the support levels of $2,510–$2,560, $2,462, and $2,402.
XAUT/USDT D1 Chart. Source: WhiteBIT
BTC Dominance, Altcoin Season Index, and Fear and Greed Index
Due to last week’s decline in altcoins, Bitcoin’s dominance has risen again, reaching 57.58%. The future trajectory of altcoins depends on where BTC’s upward momentum eventually pauses, as Bitcoin continues to dominate the market.
BTC Dominance Index. Source: tradingview.com
The Altcoin Season Index dropped to 63, indicating that altcoins have temporarily fallen out of favor among investors, with Bitcoin drawing more attention.
Altcoin Season Index. Source: blockchaincenter.net
At the same time, the Fear and Greed Index remains elevated at 83, categorized as “Extreme Greed.” This demonstrates that investors are currently more motivated by market opportunities than by caution, reflecting a strong appetite for risk.
Fear and Greed Index. Source: alternative.me
Economic News
This week in the macroeconomic calendar includes the following events:
- U.S. Manufacturing and Services PMI (Monday, December 16);
- Core Retail Sales and Total Retail Sales (Tuesday, December 17);
- Crude Oil Inventories and the Federal Reserve’s Interest Rate Announcement (Wednesday, December 18);
- U.S. Q3 GDP, Initial Jobless Claims, and Existing Home Sales (Thursday, December 19);
- Core Personal Consumption Expenditures (PCE) Price Index (Friday, December 20).
The Fed’s interest rate decision on Wednesday is likely to have the strongest influence on cryptocurrency markets. Significant volatility is expected, so traders are advised to minimize risks or refrain from active trading on that day.
Check out GNcrypto for the latest cryptocurrency rates and chart analysis.
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNcrypto:
- TOP 5 Useful Chart Analysis Tools on TradingView
- How Are Trading Volumes Useful in Cryptocurrency Analysis?
- Candlestick Patterns: Types and How They Work in Trading
- The Most Popular Chart Patterns for Crypto Trading
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