Although cryptocurrency has been experiencing a lot of FUD in the last couple of weeks, the market is showing some signs of recovering in the past few days, with a fresh rally today after Federal Reserve head Jerome Powell implied a slowing down of the Fed’s rate hikes. Bitcoin and other major cryptocurrencies have been steadily increasing in price, drawing more investors back into the market. With bitcoin being down for most of the year, traders are hopeful that the bottom may be in and are looking for a strong finish to 2022.
Cryptocurrency Market Price Prediction: Macro Analysis
In the following section, we will analyze some the broader crypto market and USDT dominance to better understand what has happened in the market over the past few days and where it might be headed for the final month of the year.
Crypto Total Marketcap Technical Analysis and Price Prediction
The above chart displays the Crypto Total Market Cap, or the amount of money circulating in the cryptocurrency market. Last week, the total RSI displayed a potential bullish divergence. This could be a signal that the price is changing direction. However, this has not been confirmed yet as the price has been trading sideways since then.
A breakout above $825 billion with substantial volume and an RSI50 breakout could confirm the divergence, with daily EMA50 acting as the next immediate resistance at $850 billion. If the price fails to break out from this range, it’s possible that we could see a drop back to the $727 billion-$745 billion support range.
USDT.D Technical Analysis and Crypto Market Price Prediction
The USDT dominance (USDT.D) chart shows an inverse correlation with Crypto Total Market Cap and Bitcoin charts, which means that if the market is going up, this chart is going down. It represents the total USDT in circulation within the cryptocurrency market. This chart will basically tell us if most traders are holding cash or are in positions.
After falling for the past couple of days, USDT.D is now moving around the area of significant support at 7.85% and 8%. This indicates that traders should be cautious in entering a trade because if the support holds, more sideways action should be expected in the cryptocurrency market for the next couple of days.
Should the price break below this area, the next possible support is around 7%. Meanwhile, leading indicators like MACD and RSI are showing bearish signs. With the RSI potentially breaking down from RSI50 and support, it could be short-term bullish for the rest of the cryptocurrency market.
Powell Speech Causes Crypto Markets to Jump
Jerome Powell’s speech on the economy has been much-anticipated by many and is making its rounds on the internet now. As Wall Street awaited this vitally important information, the Dow Jones Industrial Average dropped by 253 points, or about 0.8% of its value, while the S&P 500 fell by 0.4%.
The Federal Reserve is likely to raise interest rates by just 50 basis points at its final meeting of 2022, Fed Chair Jerome Powell strongly implied on Wednesday. This is in contrast to the Fed’s previous four rate hikes of 75 basis points.
“It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,” Powell said during a Brookings Institute event in Washington D.C. “Time for moderating the pace of rate increases may come as soon as the December meeting.”
Bitcoin jumped above $17,000 on the news and as of now BTC and ETH are up 3.85% and 6.21% on the day, respectively.
Fed Powell just had a speech and here’s all that he said! pic.twitter.com/xASDebWUb2
— Danny Devan (@dannydevan) November 30, 2022
Cryptocurrency Fundamental Analysis: DeFi is the Future
Besides the above factors, in general, markets may simply be pumping because of the fundamental strength of cryptocurrency technology and decentralized finance (DeFi), as they continue to gain more and more attention from investors, businesses, and governments around the world. People are catching on to why central bank and government manipulation of markets can be detrimental to economies, leading to an increased interest in decentralized financial empowerment.
Many people are beginning to realize that this could very well be the dawn of a new financial era and cryptocurrency could become the foundation of our economy in the decades to come. A new financial system all starts with strong projects, however, and many of the projects that will be the basis of the future DeFi ecosystem are currently just getting off the ground. This means investors have massive opportunities to get in on the ground floor of these projects and benefit from their success.
Dash 2 Trade is one such project with strong fundamentals, a solid team, and impressive financial backing that could be worth considering as an investment opportunity.
Dash 2 Trade (D2T)
Dash 2 Trade is a trading insights platform for cryptocurrency traders of all levels – from novice to experienced. D2T offers services such as building and testing trading strategies, staying up-to-date with the latest crypto news, and blockchain analysis insights. The aim of D2T is simple: To arm its users with all the resources needed to trade cryptocurrencies confidently and discover highly promising projects.
Dash 2 Trade provides its users with an intuitive interface that allows them to easily navigate through different areas of the platform. A suite of powerful tools aid traders in analyzing the ever-changing crypto markets. Traders can monitor price movements and trends, pinpoint entry points into projects using technical indicators, track portfolios in real-time across multiple exchanges, and follow news related to specific coins.
Through Dash 2 Trade, traders will be able to access a variety of alpha opportunities from the DeFi markets by leveraging the power of the platform’s deep insights provided by both humans and AI.
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