The market is in a correction and volatility phase with some positive indicators, especially with the end of the Federal Reserve's tightening monetary policy, which is expected to inject new liquidity into the markets.
Short-term technical trend levels
Bitcoin (BTC) shows signs of a downward momentum decline, with improvements in the Relative Strength Index (RSI) and MACD. Strong support: $88,000 - $87,000. Resistance: $91,200 - $92,300.
Ethereum (ETH) is trying to regain control above $3,000, but it is still under pressure from moving averages. Next resistance: the 50-day moving average at $3,468.
Ripple (XRP) shows limited performance below $2.30, with a clear lack of momentum. Support: $2.07 - $2.00.
🔭 Next week's forecasts and influencing data
There are several fundamental and technical factors likely to shape market trends in the coming days:
· Fundamental factor: End of quantitative tightening (QT)
· What happened? The U.S. Federal Reserve officially ended its liquidity withdrawal policy from the financial system on December 1, 2025.
· Expected impact: Analysts indicate that this shift is similar to what happened in 2019, which led to a strong rise in cryptocurrency markets. This move is expected to inject new liquidity of up to $95 billion monthly, supporting risk assets like Bitcoin and Ethereum.
· Technical factor: Supply and demand zones
· Bitcoin: The area between $88,000 and $87,000 is considered a strong demand zone. Failure to maintain this support may open the way for a deeper decline. On the other hand, breaking the $91,200 level could signal the beginning of a new upward wave targeting $93,000 then $96,000.
· Economic data: Inflation data
· Investors will closely monitor any economic developments, especially inflation data (CPI and PPI), as they can affect market sentiment and monetary policy expectations.
💡 Practical tips for traders
Given these circumstances, here are some practical tips that may help in decision-making:
1. Focus on liquidity and fundamentals - 2025 is considered a strong year for cryptocurrencies, but it is wise to choose currencies that have a strong software and economic foundation, not just rely on media hype.
2. Plan for risk - There are no investments without risks. One of the golden rules is to only risk the amount you can afford to lose completely. Many experts believe that risking no more than 5% of capital in a single trade is a reasonable rate.
3. Use technical analysis to determine entry - for Bitcoin, the area around $90,300 - $90,500 is considered a potential entry point for bullish traders, with a relatively close stop loss placed below $89,700. Initial targets are at $91,600 and $92,300.
4. Don't neglect gold as a measurement tool - smart investors measure their investment performance against gold and not just the dollar, as it is the real money that retains value over the long term. It is recommended that the proportion of gold in the investment portfolio be between 30% to 50%.
⚠️ Important alert
All forecasts and analyses mentioned are for informational and educational purposes only and do not constitute financial advice or investment recommendations. Trading in cryptocurrencies involves high risks and may not be suitable for all investors.
