**For now, Altcoin Season Is Over. As Bitcoin Holds, DOGE Retaliates, Wiping Out $1.7B in Leverage** **steemit** #steemcommunity
The cryptocurrency market continues to put traders' patience to the test. Ethereum and other cryptocurrencies face their own set of difficulties, as Bitcoin struggles to hold onto crucial support levels. In addition to being sharply rejected at $4,000 against the USD, $ETH has also been rejected at 0.04 in the ETH/BTC pair (including the flash drop to $3500 on Monday). To make matters worse, the 2021 bull market top, a crucial historical milestone that is currently serving as resistance, had a clear rejection on the TOTAL2 (altcoin market cap) chart.
The statistics show that cryptocurrency season is over, which is disappointing for those who were thinking it would save the day.
The Drama of the US Dollar (DXY)
Risk-on assets like cryptocurrency are kept under pressure as the U.S. Dollar Index remains close to multi-decade resistance (above 106, once more). Further pain for $BTC and altcoins could result from a breach higher.
The CPI Data for Wednesday—The Wildcard
Trends in inflation are determined by the Consumer Price Index (CPI). The Federal Reserve may postpone rate reduction if the figure is greater than anticipated, which would keep liquidity tight and pressure on cryptocurrency prices. For those who are unfamiliar: Higher rates are detrimental to cryptocurrency.
The Blues of the Stock Market
Risk-off sentiment spilled into cryptocurrency on Monday as the SP500, Nasdaq, and … Nvidia (-2.55%!) all bled. The flash drop of Bitcoin on Monday night was a component of a broader sell-off in the market.
Greed Index Indicates It's Time for a Correction
For weeks, the Fear and Greed Index has hovered in the realm of severe greed. Markets have historically punished greed with steep corrections.
Source coinmarketcap.com
Technical Analysis
Bitcoin keeps alternating between short-term misery and longer-term bullishness. How much lower it can dip before the next step up is still the key question. Important Levels
Bullish Pennant Target: $107.5K
As long as Bitcoin recovers important resistance levels, the bullish pennant breakthrough from November still indicates a price of $107.5K.
$90-91K: Support for Make-or-Break
The structural support area for Bitcoin, which has withstood each correction to date. Its loss can lead to a series of sell-offs.
The Golden Pocket, or the Retail Annihilation Zone, is $79.5K.
Institutional purchasing zones are in line with this 0.618 Fibonacci retracement. For the next bull run, sentiment might be reset by a dip here.
Indicators and Momentum
RSI and Volume
The 4H chart's RSI is getting close to oversold area, but there isn't yet any positive divergence. The volume is still lackluster, indicating hesitancy.
Moving Averages
Near $98K, the 50 and 100 MAs serve as dynamic supports. A breakdown makes going back to $90K more likely.
Flash Crash Insight
Significant buy-the-dip activity occurred during Monday's dip to $94K, indicating that the $90K–$94K range is a short-term accumulation zone.
Bullish Case
A road to $107.5K is confirmed by a $99K volume recapture. $103K is the interim resistance; several 4-hour candle closures above it are required, along with volume.
A bearish scenario
$79.5K, a crucial institutional buy zone, becomes accessible with a persistent collapse below $90K (The Golden Pocket from 83k).
The Neutral Situation
A difficult but tradeable range is produced by sideways consolidation between $91K and $99K.
End Thoughts
Corrections and bull markets are two sides of the same coin. Although the road to success is rarely a straight line, Bitcoin and Dogecoin are nonetheless optimistic on longer timeframes. It's part of the game, so be ready for volatility, control your risk, and enjoy the mayhem. And what about Solana and Ethereum? Come discover how these contestants have fared at the beginning of December by joining us tomorrow for a rigorous health check. After their latest rejections, let's see if they are still standing tall or hobbling.