As in previous cycles, the last two weeks of December tend to be bearish, and this cycle appears to be no exception. However, the depth of this correction remains uncertain. Let’s explore the possibilities together.
7 Days Heatmap
Both BTC and ETH experienced significant dips this week, falling by 3.9% and 8.4% respectively, which pulled the entire market down. However, many altcoins are already nearing a strong support or demand zone, marking a critical break-or-make zone.
BTC Analysis
Even though it appears to be falling like a knife, it still resembles a correction for BTC.
As noted in our previous BTC update, as long as the $94,000 structure holds, BTC is likely to remain bullish in the long term.
If, and only if, the $94,000 zone marked in green is broken downward, a deeper correction toward the $90,000 round number can be anticipated.
ETH Analysis
In our last roundup article, we anticipated ETH to reject the $4,000 to $4,100 resistance zone.
However, the correction turned out to be larger than expected, with the $3,500 level being broken downward.
Currently, ETH is hovering around a strong demand zone marked in orange.
As long as it holds, the bulls still have an opportunity to kick in.
If the demand zone is broken downward, further bearish movement toward the $3,000 round number is expected.
Quote of the week
Trading is very competitive and you have to be able to handle getting your butt kicked.
~ Paul Tudor Jones
Closing Remarks
In summary, the last two weeks of December have followed the usual bearish trend, with BTC and ETH dipping by 3.9% and 8.4% respectively, dragging the broader market down.
BTC remains in a long-term bullish structure as long as the $94,000 level holds, but a break below this zone could signal a deeper correction toward $90,000.
Similarly, ETH has breached the $3,500 level but is currently hovering around a strong demand zone. If this zone holds, bulls may regain momentum; otherwise, further declines toward $3,000 are likely.
Enjoying these market roundups? Dive into our more detailed outlooks for in-depth analysis and trade setups.
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