The crypto market looked relatively weak on Wednesday, at least compared to equities.
However, Bitcoin and Ethereum continue to offer really clean levels to trade.
Today’s updates include the SPX, BTC, ETH, and MATIC.
S&P 500 (SPX500)
Support: 3,720-3,750
Resistance: 3,910 and 4,040
Idea: SPX is approaching a huge test at 3,910. That’s been the pivot for the index for months, and a resistance level that won’t fall easily. A rejection from there could push SPX down to the March 2020 channel support near 3,720. Alternatively, a daily close back above 3,910 would be bullish toward 4,040.
Bitcoin (BTCUSDT)
Support: $16,500 and $16,200
Resistance: $16,900 and $17,300
Idea: BTC is sideways today as we head into Christmas weekend. I’m still eyeing a potential retest of $16,500 for a bounce. But so far, it’s unclear whether Bitcoin will test that area or simply break above $16,900. That said, the SPX trading just below 3,910 means that I’m not taking on any more long exposure for now. It’s simply too risky given the significance of 3,910 on the SPX.
Ethereum (ETHUSD)
Support: $1,180 and $1,150
Resistance: $1,220 and $1,300
Idea: ETH, like BTC, is sideways as we head into the holiday weekend. Ethereum is still trading just below the $1,220 resistance level, so a pullback is still a possibility. If ETH does pull back, I’ll be eyeing the $1,180 area, which is a confluence of support. Alternatively, a 4-hour and daily close above $1,220 would open the door to the $1,300 region.
Polygon (MATICUSDT)
Support: $0.70 and $0.62
Resistance: $0.80
Idea: MATIC has broken down from the trend line mentioned a few days ago. It also retested that level as new resistance yesterday and again today. As long as it remains below this trend line on a daily closing basis, MATIC looks vulnerable toward $0.70 and potentially lower.
