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Bitcoin (Bitcoin) The continued decline in December indicates that traders may lock in gains before the end of the year. The lack of a Santa Claus rebound in the US stock market indicates that risk aversion is prevailing due to the uncertainty surrounding the spread of COVID-19 Omicron variants in many regions of the world.
Even after the sharp drop in the price of Bitcoin, the demand from institutional investors is still tepid. The data shows that the largest institutional Bitcoin product Grayscale Bitcoin Trust (GBTC) Deal with a discount of more than 20%.
Senior trader Peter Brandt said: “A lot of panic and surrender” usually heralds the bottom In Bitcoin, this has not happened during the current decline from all-time highs. This may imply that the “real” surrender has not yet occurred.
Can Bitcoin and most major altcoins continue to fall in the next few days, or will Santa’s rally come to the rescue? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin/USD
The bulls have been defending the 200-day simple moving average ($47,130) in the past few days, but they have failed to push the price above the 20-day exponential moving average ($49,622). This indicates that the higher-level needs are insufficient.
The shorts pulled the price below the 200-day moving average on December 20. If the price stays below this key level, the selling momentum may increase. The BTC/USDT currency pair is likely to touch a strong support zone of US$42,000 to US$39,600. The bulls may actively defend the area, but the recovery may face severe challenges at the 200-day moving average.
If the price recovers from the current level and rises above the 20-day moving average, this negative perception may be invalidated. Such a move would indicate that a break below the 200-day moving average may be a bear market trap. Then the currency pair may rise to 52,000 USD and then try to rebound to 60,000 USD.
Ethereum/USDT
Ether (Ethereum) It has been trading in a descending channel for the past few days. The rebound from the channel support line on December 13 failed to break through the 20-day moving average ($4,058), indicating that the bears are selling on rallies.
The downward sloping 20-day moving average and the relative strength index (RSI) below 43 indicate that the path of least resistance is to the downside. The ETH/USDT pair may fall to 3,643.73 USD and then to the support line of the channel.
The strong rebound of the support line may extend the stay in the channel for a few more days. Then the bulls will try again to push the price above the channel. If they succeed, it indicates that selling pressure may be easing.
Or, if the price breaks below the channel, the bears may challenge the 200-day moving average ($3,288). Breaking and closing below this level may exacerbate the selling.
BNB/USDT
Buyers have successfully defended the 100-day SMA ($509) in the past few days, but they were unable to promote Binance Coin (Bitcoin) Is above the 20-day moving average ($552). This shows that demand is drying up at a higher level.
The downward sloping 20-day EMA and negative zone RSI indicate that bears have the upper hand. If the price breaks and remains below the 100-day moving average, the BNB/USDT currency pair may fall to the 200-day moving average (436 USD).
Contrary to this assumption, if the price rebounds from the current level and rises above the 20-day moving average, it indicates that the bulls have absorbed the supply. This may start to rise to $617 and is near the upper resistance level of $669.30.
Sol/USDT
Solana (Sol) The decline from the 20-day moving average ($183) on December 19 indicates that the bears are vigorously defending this level. If the price drops and stays below US$167.88, it is possible to retest US$148.04.
This is an important support that needs attention, because a break below it may cause the SOL/USDT pair to fall to the 200-day moving average ($120). A downward sloping 20-day EMA and an RSI below 43 indicate that the bears are in control.
If the price rises from the current level and breaks the 20-day moving average, this negative perception will be invalidated. Such a move would indicate that selling pressure may be easing. Then, the currency pair may try to rebound to $200 and then rise to $240.
ADA/USDT
Cardano (have) Repeatedly rebounded from the strong support of $1.18 in the past few days, but the bulls failed to push the price above the 20-day moving average ($1.35). This indicates that the higher level of demand is insufficient.
The bears will now try to lower the price and maintain it below $1.18. If they manage to do this, the ADA/USDT pair may fall to the key support level of $1. The bulls may actively defend this level.
The first sign of strength will be a breakout and close above the 20-day moving average. Such a move would indicate that demand exceeds supply. The currency pair may first rise to $1.47, and then try to rebound to the upper resistance level of $1.87.
Ripple/USDT
Ripple The past few days have been trading between US$0.75 and US$0.85. The bulls pushed the price above $0.85 today, but the long wick on the candlestick indicates that the bears continue to sell on rallies.
The RSI rebounded strongly from oversold levels, indicating that the bearish momentum may be losing momentum. This may make the XRP/USDT pair stay in this range for a few more days.
A break and close above $0.85 would indicate that the bulls have overwhelmed the bears. This may push prices up to the psychological barrier of $1. Or, a break and close below US$0.75 may open the door to a possible drop to US$0.60.
Moon/USDT
Terra’s LUNA token surged to an all-time high today, but the long wick on the candlestick that day indicates that short-term traders may book profits at a higher level.
If the price stays below $78.29, the bears will try to pull the LUNA/USDT pair to the 20-day moving average ($64). This is an important support that deserves attention, because a strong rebound shows that market sentiment is still optimistic, and traders are buying on dips.
Then the bulls will try again to push the price to the upper zone of $78.29 to $81.87. If they do, the currency pair may start to rebound to the psychological level of $100.
Conversely, if the short position pulls the price below the 20-day moving average, it indicates that the trader is exiting the position. This may cause the currency pair to fall to $50.
related: 0.01% of Bitcoin holders control 27% of all circulating coins: research
AVAX / USDT
Avalanche (AVAX) Rebounded from the strong support of $75.50 on December 14 and broke the downtrend line on December 15. This shows that the bulls are trying to resume the uptrend.
However, the upward trend fell from the 61.8% Fibonacci retracement level to $119.69, indicating that the shorts are selling on rallies. The AVAX/USDT pair has reached critical support at the 20-day moving average ($99).
If the price rebounds from the current level, the buyer will try again to resume the rise. Breaking through and closing above US$119.69 may clear the way for a rebound to US$131.70 and then to an all-time high of US$147.
Conversely, if the price breaks and remains below the 20-day moving average, the currency pair may fall to the strong support level of $75.50.
DOT / USDT
polka dot(point) It has been below the 200-day moving average ($28.82) in the past few days. This shows that the bears are in a dominant position. Sellers are currently trying to push the price below the strong support area of ??$25 to $22.66.
If they manage to do this, the DOT/USDT currency pair may continue its downtrend to the next support level of 16.81 USD. The longer the price stays below the 200-day moving average, the more likely the downtrend will continue.
Contrary to this assumption, if the price rebounds from the current zone, the bulls will try again to push the currency pair above the 200-day moving average. If they succeed, it will indicate that the bears are losing control. Then the currency pair may rise to 39.35 USD.
Dogecoin/USDT
Dogecoin (dog) Rebounded from the strong support of $0.15 on December 14 and soared above the 20-day moving average ($0.18), but the long wick on the candlestick indicated that traders were selling at a higher level.
The bears pulled the price back below the 20-day moving average on December 15. This may trap aggressive bulls, who may be forced to liquidate their positions. This pulled the price to a strong support level of $0.15.
Breaking and closing below this level may pull the price down to the December 4 low of $0.13. If this support breaks, the DOGE/USDT currency pair may fall to the psychological level of $0.10. Conversely, if the price rebounds from the current level, the bulls will try again to clear the 20-day moving average and the upper barrier of $0.19.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and transaction involves risks. When making a decision, you should conduct your own research.
Market data by Bitcoin exchange.
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