The biggest December crypto predictions deal with Ethereum (ETH), the Bitcoin Dominance Rate (BTCD), and Synthetix (SNX).
November was a decisively bullish month for the cryptocurrency market, and December has brought more of the same. BeInCrypto looks at the top crypto predictions for December.
Ethereum Will Finally Increase Parabolically
The Ethereum price has increased considerably since October. Despite the upward movement, the rate of increase lagged behind that of Bitcoin and numerous other altcoins.
Nevertheless, the ETH price finally broke out from the $2,000 resistance area last month, validating it as support. The ongoing increase suggests that the breakout is not a deviation like that in April (red circle). The weekly Relative Strength Index (RSI) gives an interesting reading. When evaluating market conditions, traders use the RSI as a momentum indicator to determine whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The RSI is increasing and is above 50. More importantly, it just moved into overbought territory (green icon). In the previous cycle, the movement into overbought territory (green vertical trend line) preceded the entire increase to the all-time high.
The closest resistance is currently at $3,000, 40% above the current price. If the current cycle is similar to the last one, the ETH price will reach it this month.
Despite this bullish ETH price prediction, a weekly close below the $2,000 area will invalidate this trend. The ETH price will likely fall 30% to the next closest support at $1,600.
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The Bitcoin Dominance (BTCD) Rally Will Cool Down
The BTCD has increased since September 2022. In June 2023, it broke out from the 48% resistance area, which had been in place for two years. It has increased significantly since.
However, BTCD is approaching a critical resistance area between the 0.5-0.618 Fib retracement resistance levels at 56%-60%. The resistance is likely to act as a local top.
Additionally, the weekly RSI has been in overbought territory for 266 days. Previously, the longest it had been overbought was 133 days (highlighted). This led to the local top and preceded a significant decrease.
As a result, if the BTCD gets rejected inside the 0.5-0.618 level, it can fall by 12% and drop to the 48% area once more.
Despite this bearish BTCD price prediction, a close above the 0.5-0.618 Fib region can lead to a 30% increase to the next resistance at 72%.
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Synthetix (SNX) Could See Large Upside Move in Price
SNX is a lesser-known altcoin that has the potential to become one of the biggest gainers in December. This is due to the breakout from long-term horizontal and diagonal resistance levels.
The SNX price broke out from a descending resistance trend line in June and then from a 550-day horizontal resistance area in November.
Additionally, the weekly RSI has nearly crossed into overbought territory. Previously, this movement led to a parabolic increase and an all-time high price. The next closest resistance is $7.30, 90% above the current price.
Despite this bullish SNX price prediction, a close below the $3.20 horizontal area will invalidate the breakout. The SNX price can fall by 50% to the closest support area at $1.90 in that case.
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Disclaimer
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