As mentioned in last week’s market breakdown, three weeks after the FTX collapse, it is still taking center stage on crypto news, but this didn’t stop the bulls last week. Even though the week had a slow start, by the weekend, the majority of the top cryptocurrencies by market cap were green for the week.
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Despite the two biggest cryptocurrencies, Bitcoin (BTC-USD) and Ethereum (ETH-USD), remaining mostly unchanged for the week, more of the other top 10 cryptocurrencies stole the show, such as Elon Musk’s favorite, Dogecoin (DOGE-USD), which is up 21.6% in the last seven days and Binance BNB (BNB-USD) token, which is up 11.4%,
As a follow-up to last week’s article, this piece will go over the cryptocurrencies to watch this week: Bitcoin, Ethereum, Ripple (XRP-USD), and Litecoin (LTC-USD).
Bitcoin (BTC-USD)
Bitcoin continued trading within a tight range from the $17,000 resistance to the $15,500 floor for the second week. As the price has been almost unchanged in the past seven days (down 0.7%), the analysis from last week remains intact:
If the bullish momentum continues this week, with a break above the resistance at $17,000, the next resistance level to watch for is $20,000. However, if the negative sentiment caused by the FTX scandal continues to spread fear across the market, the next support for Bitcoin will be at around $11,800.
Ethereum (ETH-USD)
In a similar fashion to Bitcoin, Ethereum is also trading within a tight range. Looking at the pattern on the daily chart, it can be clearly seen that the current resistance is near $1,300, while the support is at $1,000.
As stated in last week’s article, the $1,000 support level is extremely important for Ethereum. It is a strong support area and a number that has a strong psychological effect on traders.
As of now, Ethereum is trading at $1,170. If there is a continuation higher, with a potential break over $1,300, the next resistance level will be at $1400. However, if sellers regain control and drop the price below the $1,000 support, the next major support to watch for is $700.
Ripple (XRP-USD)
Ripple’s XRP token was slightly stronger than Bitcoin, as its price increased by 5.7% over the past seven days. XRP maintained its seventh position by market cap, with DOGE trying to close the gap.
As can be seen on the chart, last week, the sellers once again showed their dominance at the $0.40 resistance level, where time and time again, they managed to pull the price lower.
XRP is currently trading within a range between the support at $0.36 and the resistance at $0.40. Traders should wait for a break above or below that consolidation area for any clues as to where the price might be heading next.
In the event of a break above that area, the next resistance should be around $0.45. However, if this consolidation phase ends up breaking lower, the next support to watch will be at $0.34.
Litecoin (LTC-USD)
Litecoin continued its bullish momentum in the last seven days, with its price rallying by an impressive 15%. Litecoin is now in 15th place by market cap.
The resistance level mentioned here last week at $72 broke to the upside. However, the price couldn’t keep the bullish momentum upward and is currently trading just below it at $71.70.
If the price can’t break above $72 again and continue to increase, the next support level could be waiting at $65.
Conclusion: Take Some Profits
Despite the past week being a bullish one, traders are to remember that we are still in “Crypto Winter,” and the main trend is still bearish as we get closer to the end of the year.
Within these market conditions, I believe traders need to take some profits when these rallies occur. This way, if the market does come down, traders will have more buying power to buy at better prices. Conversely, if the market continues higher, some of the position is still running.
