BTC, ETH and PAXG Price Analysis for December 11, 2023
On the morning of December 11, Bitcoin experienced a significant correction, dipping to the $40,300 level. Here's an overview of the current market situation for Bitcoin (BTC), Ethereum (ETH), and Pax Gold (PAXG) as of December 11.
Bitcoin (BTC)
After hitting the yearly high at $44,712, Bitcoin experienced a brief pause in its upward trend, culminating in a correction. Within hours, the leading cryptocurrency fell by 8%, with a trading volume of 13,500 BTC on the hourly chart.
Although the overarching trend remains bullish, buyers need to consolidate above the $42,700-$43,300 seller zone to continue the uptrend, potentially retesting the $43,800 level and the yearly high. The local trend is currently downward, with the asset seemingly poised for further decline.
If Bitcoin's downward trajectory persists, the next targets for sellers could be a retest of the $40,300 level and a test of the psychological threshold of $40,000. Failure to hold this level could signal the onset of a global bearish trend.
BTC chart on the M5 timeframe
Ethereum (ETH)
ETH surged in recent days, reaching a yearly high of $2,402 on December 9. However, the ETH price also dropped by 8%, testing the low of $2,150, in response to Bitcoin's decline.
The current priority is the continuation of this local downward trend. Selling pressure is present within the broad resistance zone of $2,272-$2,315 and at the $2,350 level. If buyers can secure above these areas, ETH's local decline could be offset, leading back to an upward trajectory.
Otherwise, the correction could deepen significantly, with sellers potentially retesting the $2,150 level and then aiming for $2,100. Further declines will closely mirror BTC's movements.
ETH chart on the M5 timeframe
Pax Gold (PAXG)
Gold was unable to maintain stability above the crucial psychological mark of $2,000, leading to a gradual decline. If this trend continues, PAXG might soon test the buyer zone between $1,940-$1,960. Further support levels were outlined in our previous analysis.
To preserve its upward trend, PAXG needs to establish above the $2,050-$2,072 seller zone, the region of the yearly price peak. Securing above this range could pave the way for PAXG to reach the $2,100 level.
An inverse correlation between PAXG and BTC prices on higher timeframes persists. Given BTC's current correction, gold could accelerate its growth, a characteristic beneficial for hedging positions or diversifying investment portfolios.
PAXG chart on the H4 timeframe
This week's economic sector is marked by several key events: the US Consumer Price Index measuring the level of inflation (Tuesday, December 12), crude oil inventories and the Federal Reserve's interest rate decision (Wednesday, December 13), and the number of initial jobless claims in the US (Thursday, December 14).
These events could directly impact the cryptocurrency market in the upcoming months and trigger increased volatility during their release. Caution is advised when opening trades during these periods.
Check out GN Crypto for the latest cryptocurrency rates and chart analysis.
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) β a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) β the price movement between support and resistance levels, without going beyond the given range.
Π β simplified designation of one thousand dollars of the asset price (for example, 23.4K β $23,400).
Gray range on the chart β a support zone.
Red range on the chart β a resistance zone.
Correlation β the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
