Excitement is brewing in the crypto sphere as December approaches! Leading crypto analyst Justin Bennett is making waves with his bullish predictions for the digital asset market, especially for two popular cryptocurrencies: Ethereum (ETH) and Dogecoin (DOGE). Could we be on the verge of a year-end crypto surge? Let’s dive into Bennett’s analysis and see what’s fueling this optimistic outlook.
Why December Could Be a Game Changer for Crypto?
Bennett points to a key indicator: the Dollar Index (DXY). For those unfamiliar, the DXY measures the dollar’s strength against a basket of other major currencies. Interestingly, a weaker dollar can often be a tailwind for riskier assets like cryptocurrencies. Here’s what Bennett highlighted regarding the DXY:
“DXY looks good for a crypto rally heading into December. Friday’s close back inside this channel indicates weakness. Now for a close below 95.80. Let’s see.”
In simpler terms, Bennett suggests the DXY is showing signs of weakness, which historically has paved the way for crypto market rallies. Think of it like this: when the dollar weakens, investors might look to diversify into other assets, and cryptocurrencies can become an attractive option.
Crypto Total Market Cap: Ready for a Rebound?
Beyond the DXY, Bennett is also keeping a close eye on the total market capitalization of the cryptocurrency market (TOTAL). He notes a potentially bullish pattern forming:
“TOTAL falling wedge and bullish divergence developing on the intraday charts. Something to keep an eye on.”
Let’s break down what this means:
- Falling Wedge: This is a chart pattern that slopes downwards but is typically considered bullish. It suggests that while the price has been declining, the selling pressure is weakening, and a potential breakout to the upside is likely.
- Bullish Divergence: This occurs when the price of an asset is moving downwards or sideways, but a technical indicator like the Relative Strength Index (RSI) is moving upwards. This divergence can signal that the downward momentum is losing steam and a potential price reversal upwards is on the horizon.
Essentially, Bennett sees these technical indicators aligning, suggesting that the overall crypto market might be poised for a significant upward move.
Ethereum (ETH): Primed for a Pump?
Now, let’s zoom in on Ethereum. Bennett specifically calls out ETH as being in a prime position for a December rally. He points to an approaching breakout level, emphasizing the need for one crucial ingredient:
“ETH approaching a breakout level. Just add volume.”
Volume is the lifeblood of any price movement in trading. For Ethereum to truly break out and experience a significant rally, increased trading volume is essential. More buyers stepping in will be needed to push ETH past resistance levels and propel it upwards. Keep an eye on trading volumes for ETH in December – a surge could signal the start of the predicted pump.
Dogecoin (DOGE): Breaking Out of the Doghouse?
Last but not least, Dogecoin, the meme-coin that captured the hearts (and wallets) of many, also gets a mention from Bennett. He believes DOGE is currently in the midst of a breakout:
“DOGE is breaking out.”
Bennett outlines key resistance levels for Dogecoin to overcome:
- First Key Resistance: $0.25. Breaking above this level would be a significant bullish signal for DOGE.
- Final Resistance: All-Time Highs (above $0.75). Reaching and surpassing its all-time highs would be a monumental achievement for Dogecoin, potentially triggering another wave of excitement and investment.
While Dogecoin is known for its volatility and meme-driven pumps, Bennett’s analysis suggests there might be more than just hype fueling its current momentum. Keep an eye on whether DOGE can successfully breach that $0.25 resistance level – it could be the start of a significant run.
Is December the Month for Your Crypto Portfolio?
Justin Bennett’s analysis paints an optimistic picture for the crypto market in December, with Ethereum and Dogecoin highlighted as potential frontrunners in a predicted rally. While market predictions are never guaranteed, Bennett’s insights into DXY, overall market cap patterns, and specific cryptocurrency analysis offer valuable perspectives.
Key Takeaways:
- DXY Weakness: A potentially weakening dollar could create a favorable environment for crypto assets.
- Bullish Market Signals: Technical analysis of the total crypto market cap suggests a possible upward trend.
- Ethereum Breakout Potential: ETH is approaching a key level, requiring increased volume for a significant move.
- Dogecoin Breakout in Progress: DOGE is showing signs of breaking out, with key resistance levels to watch.
As always, remember that the cryptocurrency market is inherently volatile. Do your own research, understand the risks involved, and never invest more than you can afford to lose. However, if Bennett’s predictions hold true, December could indeed be an exciting month for crypto enthusiasts!
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