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Bitcoin and Ethereum – Weekly Technical Analysis – December 6th, 2021

By:
Bob Mason
Published: Dec 6, 2021, 01:17 UTC

Following a bearish week for the majors, a move through the week's pivot levels would be key to avoiding another week in the red.

Ethereum Crypto Currency Market

Bitcoin

Bitcoin, BTC to USD, slid by 13.70% in the week ending 5th December. Following a 2.29% loss in the week prior, Bitcoin ended the week at $49,474.

A mixed start to the week saw Bitcoin rise to Tuesday intraweek high $59,174 before hitting reverse. Falling well short of the first major resistance level at $60,023, Bitcoin tumbled to a Saturday intraweek low $41,634.

Bitcoin fell through the week’s major support levels. The extended sell-off also saw Bitcoin fall through the 23.6% FIB of $53,628 and the 38.2% FIB of $44,144.

Finding weekend support, however, Bitcoin broke back through the 38.2% FIB and the third major support level at $44,987 to end the week at $49,000 levels.

4-days in the red that included an 5.01% slide on Friday and an 8.27% tumble on Saturday delivered the downside.

At the time of writing, Bitcoin was down by 1.02% to $48,968. A mixed start to the week saw Bitcoin rise to an early Monday high $49,522 before falling to a low $48,472.

Bitcoin left the major support and resistance levels untested early on.

BTCUSD 061221 Daily Chart

For the week ahead

Bitcoin would need to move through the $50,094 pivot to bring the first major resistance level at $58,554 into play.

Support from the broader market would be needed for Bitcoin to break out from the 23.6% FIB of $53,628. Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a breakout, Bitcoin could test resistance at $60,000 before any pullback. The second major resistance level sits at $67,634.

Failure to move through the $50,094 pivot would bring the 38.2% FIB of $44,144 and the first major support level at $41,014 into play.

Barring another extended sell-off, Bitcoin should steer clear of sub-$40,000 levels. The second major support level sits at $32,554.

Ethereum

Ethereum fell by 2.21% in the week ending 5th December. Reversing a 0.83% gain from the previous week, Ethereum ended the week at $4,203.

A relatively bullish start to the week saw Ethereum rise to a Wednesday intraweek high $4,785 before hitting reverse.

Ethereum broke through the first major resistance level at $4,598 before sliding to a Saturday intraweek low $3,575. The extended sell-off saw Ethereum fall through the first major support level at $3,957 and the second major support level at $3,616.

Ethereum also fell through the 23.6% FIB of $3,738 before finding support. The partial recovery saw Ethereum move back through the 23.6% FIB and the major support levels to end the week at $4,200 levels.

4-days in the red that included a 6.59% sell-off on Friday delivered the downside in the week. 3 consecutive days in the green at the start of the week limited the damage, however.

At the time of writing, Ethereum was down by 1.33% to $4,147. A mixed start to the week saw Ethereum rise to an early Monday high $4,210 before falling to a low $4,108.

Ethereum left the major support and resistance levels untested early on.

ETHUSD 061221 Daily Chart

For the week ahead

Ethereum would need to move back through the $4,188 pivot level to support a run at the first major resistance level at $4,800.

Support from the broader market would be needed, however, for Ethereum to break out from $4,500 levels.

Barring an extended crypto rally, the first major resistance level and last week’s high $4,785 would likely cap any upside.

In the event of another extended breakout, Ethereum could test resistance at $5,000 before any pullback. The second major resistance level sits at $5,398. Ethereum would need plenty of support, however, to breakout from its ATH $4,867.81.

Failure to move back through the $4,188 pivot would bring the 23.6% FIB of $3,738 and the first major support level at $3,590 into play. Barring an extended sell-off, however, Ethereum should steer clear of the 38.2% FIB of $3,039. The second major support level sits at $2,978.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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