Anticipate bear market target zones

• The Bitcoin price lost 16% of its market value in November and has since gained 9%.
• The Ethereum price is showing a bit more strength in the market compared to Bitcoin.
• XRP price has potential for a 14% rally if the recently broken resistance zone maintains support.

The crypto market produced a shallow pullback in countertrend after November’s bearish stronghold. Now the technical is showing waning momentum during the uptrend’s hike. Another sell-off in the market could bring bad news for the start of 2023.

Bitcoin price is unconvincing

Bitcoin price loses momentum as a countertrend rally stalls near the $17,000 barrier. During November, the bears produced a 16% market decline, establishing a new yearly low of $15,546. Now the 9% trend is showing signs that give cause for concern.

Bitcoin price is currently auctioned at $16,984. Since breaking the new annual low, the biggest candlestick and volume inflow belongs to the bears. A Fibonacci retracement tool around November’s decline shows the ongoing overload zone just below the 38.2% retracement level. The bull’s failure to mark the level can be seen as a demonstration of how strong the bearish force is.

BTC/USDT 1-Day Chart

If market conditions persist, the new annual low could be due for a retest. A second target will be the $14,900 liquidity zone that has been unauthorized since 2020. The bulls need to prevent the 38.25% Fib level to invalidate the bearish outlook and justify targeting higher targets.

The Ethereum price has potential

Ethereum price rose 20% after enduring November’s 36% decline. A Fibonacci retracement tool around November’s downtrend shows the bullish retracement as stronger than Bitcoin’s. The bulls were able to prevent the 38.2% fib level and although the first attempt did not lead to another rally, it is a fight close to a previously broken support zone at $1250.

The Ethereum price is currently auctioned at $1,248. The volume indicator is showing a tapering effect, selling has fewer transactions than the November 30 candle that broke through the support zone and the Fib level.

If the bulls can maintain support above the recaptured support zone, targeting the 50% and 61.% Fib levels will be a sound trade. The bullish scenario would create the potential for an increase of up to 13% from ETH’s current market value.

ETH/USDT 1-Day Chart

A break below the November 30 bullish engulfing candle that pierced the $1,212 support zone would invalidate the bullish potential. If the candle’s low is broken, the bears could redirect south and target the November low at $1,075. Such a move would result in a 14% decline from today’s Ethereum price.

The XRP price maintains a bullish stance

XRP price is consolidating after breaking the market structure to the upside during the last week of November. On December 6, the digital remittance token continues to hover above a broken trendline that served as resistance throughout November when XRP traded between $0.33 and $0.38.

The XRP price is currently auctioned at $0.39. The Volume Profile indicator shows that the bullish strength is waning despite the increase in market cap. The bulls are testing the 21-day simple moving average as support after losing support from the 8-day exponential moving average on December 1.

At this point, calling for a bearish entry would be premature and ill-advised. Bulls still have potential to rally 13% higher into October’s broken support zone at $0.44. The earliest evidence to remove the bullish potential would be a daily candlestick near November’s range.

XRP/USDT 1-Day Chart

A candlestick near $0.375 or lower would create a scenario to target the other side of the November trading range at $0.33. The XRP price would drop by $15% if said price action were to happen.