Crypto Monthly Technical Analysis Report | 30th-December-2022

The global crypto market took a tumble this Friday , with almost all major cryptocurrencies trading lower, including Bitcoin, Ethereum, and Dogecoin. The overall market cap for cryptocurrencies fell 2.97% to $823.29 billion. Bitcoin and Ethereum, which account for more than 50% of traded cryptocurrencies, have significantly affected the total market cap with their negative movements. The market is still suffering from the collapse of the FTX empire and falling demand for digital assets due to difficult market conditions.

Bitcoin, the top crypto, has lost 60% of its value this year while the broader crypto market plummeted due to the collapse of Sam Bankman-Fried’s Celsius FTX empire $1.4 trillion, and stablecoins Terra USD and Luna. Solana, a crypto token praised by FTX founder Bankman-Fried, fell 10.36% on Thursday and is down 94.2% for the year. The collapse of FTX has impacted the liquidity of companies with ties to the once-great crypto exchange, including Solana. Although the token has a limited association with FTX, it has been negatively impacted by its association with Bankman-Fried.

Bitcoin staged a modest rebound on December 29 as US stock markets rose at the same pace. Bitcoin’s sharp fall in price has hurt both short- and long-term investors equally. According to Glassnode data, on Dec. 26, 1,889,585 Bitcoin held by short-term holders lost while long-term holders lost 6,057,858 Bitcoin. BTC/USD rallied above $16,600 on Wall Street after falling below $16,500 for a second day. The pair remained unattractive to traders, many of whom feared that a deeper pullback could still occur around the new year. The bearish move was supported by derivatives markets on December 29th, with funding rates positive while price action failed to recover. Short-term BTC price action received a boost from US stocks, with the S&P 500 up 1.4% in the first hour of trading and the Nasdaq Composite Index up 2.1%. The US dollar continued its broader consolidation after the US Dollar Index (DXY) posted two straight days of gains. With just two days left until the weekly, monthly, quarterly and yearly closes, BTC/USD is down about 60% year-to-date, down 3% in December and down 14.2% in the fourth quarter data confirmed.

The failure of the bulls to push Ether above the 20-day EMA ($1,223) suggests that the bears are vigorously defending the level. This may have caused the bulls to give up and close their positions. The pair could now drop to $1,182. If this support fails, the ETH/USDT pair can drop to the solid $1,150 support. If the price bounces sharply from this level, it suggests the pair could consolidate between $1,150 and $1,352 for a few days. In 2023, Ethereum holders will likely see the arrival of the Shanghai update, which in short will allow Ethereum holders to take ETH out of the staking contract and use it however they wish . It is believed this could be a good catalyst for crypto as it could encourage other people to bet on Ethereum by seeing billions of dollars unlocked. However, analysts chose not to provide a price prediction for the altcoin.

Gold has been an outperformer in 2022 in comparison to the USA equities markets and Bitcoin The yellow steel is sort of flat for the year at the same time as the S&P 500 is down extra than 19% and Bitcoin has plunged kind of 64%.  Despite gold’s strong performance and bitcoin’s dismal performance in 2022, billionaire investor Mark Cuban still prefers bitcoin over gold. The price of Bitcoin appears poised to drop nearly 70% by the end of 2022, its worst year since the crypto crisis of 2018.

Meanwhile, the US benchmark S&P 500 Index is down almost 20% year-to-date to 3,813 points in December. 28. That marks the index’s biggest annual decline since the 2008 economic crisis. The carnage has proved worse for the tech-heavy Nasdaq Composite, which is down 35% year-to-date. , whose shares have fallen by almost 72.75% and 65%, respectively. Tech stocks and Bitcoin appear to have suffered similar losses in 2022. As with Bitcoin, Fed rate hikes remain the most critical factor behind the US stock market’s underperformance, but monetary policy tightening It remains to be seen whether politics will trigger an economic downturn in 2023.

This uncertainty has driven capital into the US dollar for safety reasons, with the US Dollar Index (DXY), a barometer of the dollar’s health against major foreign currencies, falling nearly 8.5% YTD.  Bitcoin had rallied 1,650 % and bottomed below $4,000 in March 2020, driven by the Fed’s quantitative easing policy. Even as of December 28, investors who bought Bitcoin in March 2020 are making a 332% gain. Compared to the stock market and gold rally during the pandemic period it has been minor.

Technical Outlook


Bitcoin Chart | 30th December 2022
Bitcoin (BTC) Chart

BTC continues to trade sideways in a narrow range from $16,500 to $17,000 over the past ten days and is making a series of small candles with low volumes. On a broader scale, BTC is forming a rectangular pattern and consolidating between $15,500 and $18,000. Once the prices break and close above $18k then we may expect the prices to go up to $22,500 whereas a break below $15k will lead to further downfall.


Ethereum Chart | 30th December 2022
Ethereum (ETH) Chart

ETH after resisting at $1,350 witnessed a profit booking and the prices dropped to $1,151. The asset consolidated at these levels and showed some momentum and went up to $1,240 but with low volumes. Post this move, ETH has been trading in a narrow range from $1,190 to $1,240 forming a series of small doji candles indicating more sideways movement. $1,150 and $1,000 will act as a strong support whereas $1,350 – $1,400 will act as a strong resistance and breakouts on either side of these levels with good volumes will further decide the trend for the asset.


BNB Chart | 30th December 2022
BNB Chart

BNB after taking multiple support at $255 it went up to $317.8. Post this move, the asset started trading in a ‘Descending Channel’ pattern. Last week, BNB gave a breakout below the pattern and broke the long held support of $255 and made the low of $220. Post this move,  the asset is consolidating between $255 and $235. To witness a rally, BNB needs to close and sustain above the key level of $255.

Monthly Snapshot:

NovemberDecemberCurrent MonthCurrent Month
CloseClose% ChangeHighLowHighLow
crypto1m – % Vol. Change (Global)
BitCoin (BTC)-55.34%
Ethereum (ETH)-100.00%
Binance Coin (BNB)-49.40%
Resistance 2$22,500$1,750$1.20$300
Resistance 1$18,000$1,400$1.00$255
Support 1$15,500$1,000$0.75$215
Support 2$12,000$880$0.63$183

Market Updates:

  • Xiao Yi, Communist Party secretary of the City of Fuzhou, financially aided Bitcoin miners between 2017 and 2021.
  • The developers of Dogecoin have denied rumors that the network is immediately switching to proof-of-stake (PoS), saying that they are merely planning to release a proposal on the topic.
  • The Central Bank of the Republic of Turkey (CBRT) has completed the first trial of its central bank digital currency (CBDC), the Digital Turkish Lira, and has signaled plans to continue testing throughout 2023.
  • US-based crypto exchange Kraken said on Wednesday that it would cease its operations in Japan next month, citing the current market conditions in the country and a weak crypto market globally.

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