Plan for the first moves in 2023

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Bitcoin price stabilized in December with a 4% monthly loss in market value. Ethereum price could decline by 50% if the bulls lose the support of the $1,100 area. The price of XRP fell 10% on January 2, but the bulls quickly rebounded.

The crypto market produced unremarkable price action to close out 2022 as all three cryptocurrencies escaped the predicted Santa Rally. 2023 could be due to more downward price action if the lackluster bull effort continues.

Bitcoin price ends 2022 on a bearish note

Bitcoin price produced disappointing price action throughout December as investors anticipated a year-end Santa Rally that never happened. Like the last hours of 2022

slowed, the peer-to-peer digital currency remained submerged below the $17,000 barrier. Ultimately, BTC would settle the December auction with a 4% loss in market value since the start of the month.

Bitcoin price is currently selling at auction at $16,707. The countertrend bulls are still trying to produce a crypto 180. To do so, the November stabilization price at $17,163 will be a necessary area to conquer and return as support. The first evidence of the ongoing uptrend rally would be a breach of the 21-day simple moving average at $16,870. The indicator has rejected BTC bulls twice in the past month, and the third rejection could be the catalyst for a low sweeping event targeting the 2022 low at $15,476.

BTC/USDT 1-day chart

Ethereum Price Could Drop Hugely

Ethereum price closed in December with a 3% loss in market value. While the decentralized smart contract token is known to diverge from Bitcoin’s price action, the fourth quarter of 2022 witnessed a significant correlation between the two crypto giants.

Ethereum price is currently trading at $1,216. After finding support near the $1,100 area in mid-December, the bulls produced an ascending trendline. Consolidation hovering directly above the support barrier suggests trouble for the 2022 low at $880.

A daily closing candlestick below the trendline would be problematic. Investors could take a loss of up to 50% by targeting the $650 area. The target area is a 50% retracement level, taken from a Fibonacci retracement tool surrounding the 2020-2021 bull run from the $86 low to $4,850 high.

ETH/USDT 1-Day Chart

XRP price shows liquidation at the beginning of the month

XRP price showed much more bearish severity as the digital rebate token closed in December with a 16% loss in market value. On January 2, the bears attempted to breach the 2022 low at $0.287 but were unsuccessful. XRP fell 10%, producing a low of $0.30, but the price quickly rebounded to the $0.34 area.

Ripple price is now auctioned at $0.345. Although the recent selloff is an attractive bullish move, investors should consider staying away for several reasons. The 8-day exponential moving average and the 21-day simple moving average sit directly above the current trading range.

Additionally, the volume indicator shows the recent move as a relatively normal trading day, with only $480 million in trades made during the auction. The June 18 low at $0.287 produced almost twice as many trades at $866 million and was the catalyst for XRP’s 75% rally to the $0.56 level a few weeks later. As of this writing, bulls will need to produce more clues to envision a true market reversal underway.

XRP/USDT 1-Day Chart

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