How Long Will Crypto’s Bearish Nightmare Last?

The widespread downturn that began on December 3rd caused Bitcoin and the entire crypto market to collapse, with BTC / USD hitting a nearly three-month low of $ 42,874 on December 4th. So when will we stop having nightmares?

BTC / USD

The trading volume of Bitcoin yesterday morning was very low. The price fell below the psychological level of $ 50,000 and hit a daily low of $ 48,656.

This decline has sparked user demand and increased the volume of purchases to an average level. Accordingly, BTC price was able to rebound to the 2-hour EMA55 but failed to overcome the resistance of this moving average.

BTC / USD chart | Source: TradingView

As of this morning, the pair has been back below $ 50,000. During the day the price fell as low as $ 47,745. If the bears keep roaring, it is likely that BTC will drop to the USD 46,000 support level.

The negative scenario will be invalidated if the bulls push the price into the $ 49,500 area and attempt to break into above the moving averages.

A slightly positive factor for Bitcoin right now is that CPI data is in line with projections but still showing a big spike and CPI inflation is at its highest level in nearly 40 years.

US CPI data chart. Source: US Bureau of Labor Statistics

Bitcoin is trading at $ 49,597 at press time.

ETH / USD

Sellers tried to break through the 2-hour EMA55 support yesterday. During the day, ETH price broke this moving average and hit a daily low of $ 4,226.

ETH / USD chart | Source: TradingView

Yesterday the price rebounded above the $ 4,400 mark and buyers neared the $ 4,500 mark but were unable to test it.

After that, the ETH price fell back into the average price range. Today traders can hope for support from the 2-hour EMA55 again. If the bears fail to push below the EMA55, price has a chance to rebound above $ 4,500.

ETH is trading at $ 4,189 at press time.

XRP / USD

Buyers were unable to break resistance from the 2-hour EMA55 yesterday morning. In the afternoon their efforts were more successful. In the evening, the XRP price hit a local high of $ 0.885.

XRP / USD chart | Source: TradingView

If the pair consolidates above the EMA55, the rally may continue to $ 0.96 through the week.

XRP is trading at $ 0.865 at press time.

BNB / USD

The BNB price has remained almost unchanged since yesterday. The price has only fallen 0.4% in the last 24 hours.

BNB / USD chart | Source TradingView

Despite the price drop, BNB remains above the most liquid area around $ 580, away from the $ 540 support. Right now, neither the bulls nor the bears are in control of the market situation. This is also confirmed by the low trading volume. If sellers break through and freeze below the purple support line, the downward move may continue to drive price towards the critical $ 500 level.

BNB is trading at $ 592 at press time.

ADA / USD

ADA looks worse than BNB as the altcoin has fallen nearly 3% in the past 24 hours.

ADA / USD Chart | Source: TradingView

From a technical perspective, if ADA pegs below the nearest support at $ 1.28, the price could decline further. When that happens, a downward move can push ADA to the critical $ 1.07 level.

ADA is currently trading at $ 1.32 at press time.

You can see the coin prices here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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