We’re seeing several altcoins strengthen today, which is why I’m discussing everything from ETH to LINK to VET in today’s issue.
I’ll also share what Bitcoin needs to do to keep its recent bullish momentum intact. And that’s important because, as we all know, altcoins love to follow BTC.
So, watch the video and check the charts below for updates on DXY, BTC, ETH, LINK, MATIC, DOT, and VET.
Let’s get it!
US Dollar Index (DXY)
The US dollar is rotating lower today, hence why we’re seeing cryptos gain some strength.
We need to see the USD continue to come off of recent highs for Bitcoin and others to continue their recent bullish momentum.
More specifically, we want to see the DXY close below 96 support. It doesn’t have to happen today, but sometime this month would be nice.
Until then, expect a ranging market with resistance just below 97.
Bitcoin is hanging onto yesterday’s gains, at least so far. However, the real test for buyers is the $50,000 region, which is the descending trend line from the all-time high.
Above $50,000 is an even bigger test for bulls around $53,000 to $54,000.
If BTC can get above that $53,000 to $54,000 area on a daily closing basis, we could see a move back to $60,000 and potentially higher.
That said, we don’t have a confirmed breakout just yet. And as long as Bitcoin is below $50,000 and $54,000, I’m going to continue to eye the $42,000 region just in case.
ETH is testing the descending trend line from the December 1st high. That level comes in right around $4,050.
A close above that could extend prices toward $4,200. However, I’d like to see ETHUSDT get back above $4,500 to confirm the first higher high since November.
Until that time, there’s a chance we get another rotation into the $3,500 to $3,700 support area.
LINK is also testing a resistance level today. In this case, it’s the $20.40 area that buyers need to clear on a daily closing basis to expose $23. Above $23 is $26.50.
On the other hand, if we were to see the crypto market take another hit in the coming days, I’d keep a close eye on the $17 support region for Chainlink.
With all of that said, I did think there was a good chance we’d see LINK test the multi-year channel support between $14 and $15.
And while that may still happen, a close above $20.40 and especially $23 would make it less likely.
However, like everything, I think it’s important to have a plan for every scenario just in case. And like it or not, BTC isn’t out of the woods just yet, which means any altcoin gains have to be taken with a grain of salt.
I talked about MATIC a few hours ago on YouTube, stating that the market needs to close above $2.70 on a daily closing basis to confirm the breakout.
And I stand by that. Until we get a daily close above $2.70, that area is resistance.
A close above that area would flip it to support and could extend prices into the $4 to $4.70 range over the coming weeks.
Immediate support for MATIC comes in between $2 and $2.20, and $1.70 is the must hold level to keep the rally intact.
DOT is seeing a nice bounce today but is currently testing a trend line off of the November 8th high.
It’s going to take a close above that trend line near $28.50 to expose higher levels. That said, we need to see DOTUSDT carve some higher highs and lows before we can confirm a reversal.
As of now, the market is still in a downtrend, and the only thing to reverse the bearish momentum is higher highs and lows.
VET is experiencing a nice move higher today as well and is currently testing the $0.088 key level that I mentioned recently.
A close above that area would flip it to support and also expose $0.103. Above that area is the infamous $0.123 region that we’ve discussed for weeks.
Alternatively, a rotation lower would likely find support in the $0.07 area, followed by $0.06.