As we get ready to celebrate a new year, crypto remains an area of focus for me. While I still believe Bitcoin, Ether, and crypto on the whole will eventually see higher prices, we are clearly in a basing period at the time of this writing. If you are someone who intends to hold your crypto for many years, you are probably content to sit through these type of fluctuations. For someone who prefers to trade, like I do, it is important to know key areas of support and resistance.
Bitcoin is currently basing between the $46,000 range and the $68,000 range. This type of action is akin to no man's land. I actually would like to see Bitcoin undercut some major lows in the coming weeks. This is my ideal scenario since it would bring fear to the market and flush out weak holders. Then, I would look to buy above the $52,000 level as Bitcoin began to rally. From there, I would look to add to my position as another buy point develops.
Ether is still holding above its' 200-day line. I'd like to see it either move sideways to meet this key moving average or fall and find support off it on volume. The $4,600 price level is key resistance. It would be extremely bullish to see Ether trade above that level. For now, it is a wait and see game.
Solana is still above its' 40-week line which is constructive. I'd like to see it retake its' 10-week moving average and then breakout on volume. For now, I'm content to monitor it until a trend develops.
Mana is also a token that I'm also watching closely. As the metaverse may become a major theme in 2022, I'm making a note of which stocks and cryptocurrencies are likely to benefit from this new emerging frontier. I'd love to see Mana undercut the $3 support level. This would flush out weak hands and prepare the way for a move higher. After this, I would look to buy it above $4 and later add to it at another pivot point.
It is very well possible that crypto may need to base for a few months to digest the large gains from 2020 and early 2021. However, this is not a time to completely tune out this space. You want to be ready once the next trend develops.
Risk right. Sit tight.
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