Crypto outlook | Markets to face a correction?

Fundamental data

Stock markets have continued their way to higher levels even during the Christmas period. With the holiday season ending only slight correction has been found. Yet, markets might face further setbacks in the coming weeks. Stock markets remain slightly shaky and especially tax burdens in the US might be a reason that traders sell some tokens. In order to pay for potentially accumulated debt, the upside in the crypto space might be limited. Profitable positions might be reduced causing markets to fall from high levels.

Technical analysis:

– BTC: Bitcoin is trading at USD 94,530. Bitcoin has been able to run to higher levels and might remain capped near the USD 100,000 area. In December the token had not been able to stabilize above the psychological price tag and keeps fading to the downside. After a bullish month of November, initiated by the US election, the price could now be ready to fall.

In this case, downside momentum might be established if the current bearish pinbar candlestick- pattern based on the monthly chart will be fully printed. The price could then be ready to fall towards the USD 70,000 zone, which marks a previous resistance area.

– ETH: Ethereum is trading at USD 3,345.00. Also, Ether keeps following the bearish market sentiment as the weekly chart confirms. Profit taking just before the Christmas holidays caused the positive market sentiment to fade.

The big bearish red candle might indicate that the price will fall from current levels, potentially opening way for a further slide. A break of the 50- moving average zone in blue color might pave the way for further bearish momentum towards the USD 2,500.00 price level.

– XRP: Ripple is trading at USD 2.1626. Based on the previously discussed monthly chart it looks like the positive sentiment of this token will fade further. The market is seemingly also about to print a strong bearish pinbar candlestick pattern.

Should the current candlestick for the month of December end this way, the downside might be open for a bigger slide. After a strong upside move the market has always seen a bigger correction in the end, which might be same now.

– SOL: Solana is trading at USD 186.20. Based on short- term market analysis the price might also be ready to fall to lower levels. The daily chart shows, that the market has been fading below the 50- moving average, which potentially indicates another slide to the downside.

Furthermore, the market has been capped below the rising trendline, which can be found in blue color above. The current price zone of USD 185.00 is now important. If it falls, then a further slide should be expected. Strong upside momentum might only develop above the USD 210.00 area.

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