This is what we will be covering today.

1. Top Crypto Narratives: Examining the leading narratives in the crypto world, including animal racing on Solana, Theta ecosystem, and more, and their potential impact on an upcoming altcoin rally in December.

2. Market Analysis Highlights: A look at the current state of stablecoin dominance, its implications, and insights into the global crypto market trends, particularly focusing on BTC and ETH.

3. BTC and ETH Deep Dive: Detailed analysis of Bitcoin and Ethereum, including key resistance levels, trend predictions, and monthly return analysis to anticipate what December might hold for them.

Despite the bearish sentiment on Crypto, Twitter, BTC, and ETH are performing well. This rally is largely funded by accounts that are on the sidelines.

Before we continue with the market analysis, I think it would be interesting to look at what narratives are picking up, as I believe we will see an altcoin rally in December. It's not full-blown, but many tokens within trending narratives will perform exceptionally well.

The top narratives (categories) by 7-day growth % are:

• Animal racing ($CROWN on Solana, for example)

• Theta ecosystem ($TFUEL)

• Telegram Apps ($ASCN)

• Seigniorage ($FXS)

• Insurance (NXM)

It might be worth checking out coins with strong teams building useful apps or games. Let's continue with market analysis, starting with stablecoin dominance.

Stablecoin Dominance

Stablecoin dominance is still bearish, which is good for other volatile crypto assets. The next support is at $6%.

Global crypto market with BTC

The global crypto market is looking pretty good. October and November price action has been very good. The Global crypto market is moving towards the next resistance between $.135T and $1.5T.

I still think there’s some room for BTC and altcoins to move upward before we see some major distribution happening.

Altcoin market cap

The altcoin market is starting to wake up from the slumber of the bear market. Currently at $550B, the altcoin market is short of breaking above a 2-year resistance at $552B.

A new high in the altcoin market would mean a new higher high on the weekly timeframe, which is a bullish sign.

Overall, the VMC indicator doesn’t look oversold, and no bearish divergences are forming yet.

BTC Analysis

The weekly trend is neutral inside the Ichimoku cloud. A break above the red cloud would turn the weekly trend bullish.

The next resistance on the weekly chart is $42k.

The VMC indicator gave us a heads-up with a bullish buy flag at the beginning of October.

As I mentioned in the previous analysis, BTC had a strong rally in October and November, which surprised many traders. I believe many traders and long-term investors are still sidelined and are coping hard with the price of BTC.

If BTC continues to rise, it will be a very hated rally.

I believe BTC will follow a price action similar to what’s depicted in the chart below. A wave 3 move to around $42k - $45k with a subsequent correction to around $30k and then a move to around $50k with wave 5.

A move to $42k coincides with the upper edge of the red Ichimoku cloud on the weekly timeframe.

BTC Monthly Returns

As we close out November, it's time to examine the month's returns to see how favorable December might be.

December should be a pretty bullish month.

If we look at the trend continuation 8 times out of 10, the BTC trend in December continued the same as in November.

If November was green, there’s an 80% chance that December would also be green.

Luckily, November ended with BTC on a green note.

Here’s an interesting fact. It might only be a coincidence, but all of the monthly predictions I’ve made until now have been 100% accurate. I’ll continue doing them.

ETH Analysis

ETH entered the cloud a while ago and is on its way to making an edge-to-edge cloud move on a weekly timeframe. I do think BTC will finish its move first before ETH rallies.

The next target for ETH is $2.8k. That’s where ETH will face some serious resistance.

BTC is likely to be a better trade in the short term than ETH, but the risk-to-reward potential is higher with ETH.

Here are some of my best-performing threads from October.

Just in case you missed one of them.