The S&P 500 Index (SPX) surged 2.49% last week, extending its series of weekly gains to seven weeks, the longest such winning streak since 2017. However, Bitcoin (BTC) could not keep up its momentum and gave in to profit-taking by the bulls. Trading resource Material Indicators stated in a X (formerly Twitter) post that “year-end profit taking and tax loss harvesting” will remain in the short term.
Nevertheless, a crash is not likely because several analysts anticipate the United States Securities and Exchange Commission to approve one or more spot Bitcoin exchange-traded fund applications in January. If that happens, it could be a game-changer for the sector.
VanEck CEO Jan van Eck said in an interview with CNBC that Bitcoin is likely to reach a new all-time high within the next 12 months. He expects Bitcoin to become an accompaniment to gold.
What are the important levels that could stop the fall in Bitcoin and altcoins? Let’s analyze the charts to find out.
S&P 500 Index price analysis
The S&P 500 Index experienced a strong bullish move in recent days, which drove the price above the 4,650 resistance level on Dec. 13.
The sharp rally has caused the relative strength index (RSI) to enter the overbought area, indicating that the markets are overheated in the short term. This could result in a correction or a period of consolidation in the upcoming days. The strong support on the downside is located at the breakout level of 4,650 and then the 20-day exponential moving average (4,601).
If the crypto avax price continues to rise and breaches 4,740, the index may extend the uptrend to 4,819. This level is likely to face a tough battle between the bulls and the bears, but if the buyers prevail, the rally could reach the psychological level of 5,000.
U.S. dollar Index price analysis
The bulls were unable to keep the U.S. dollar Index (DXY) above the 20-day EMA (103) during the period between Dec. 5-13, prompting the bears to increase their selling activity and push the index lower. On Dec. 14, the bears took the price below the 61.8% Fibonacci retracement level of 102.55, indicating the continuation of the corrective phase. The next strong support is located at 101.
The RSI is beginning to form a positive divergence, suggesting that the selling pressure may be declining. If the price rebounds from 101 and surpasses the 20-day EMA, the index may remain in a wide range between 101 and 108.
Bitcoin price analysis
On Dec. 18, Bitcoin’s range between the 20-day EMA ($41,323) and the downtrend line was broken, but without any significant momentum.
The flattening 20-day EMA and the RSI near the midpoint indicate that the crypto will stay in a range in the near future. If the price drops below $40,000, it could plunge to the key support at $37,980, which is likely to draw a lot of buying from the bulls.
If the price rises and surpasses the 20-day EMA, it will signal strong demand at lower levels. The bulls will then attempt to break the resistance at the downtrend line, which could propel the pair to $44,700.
Ether price analysis
Ether (ETH) dropped beneath the powerful backing at $2,200 on Dec. 18, proposing that the bulls may be losing their grasp.
In the event that the cost holds beneath $2,200, the ETH/USDT pair could slip to the 50-day SMA ($2,074). This level may again draw in purchasers, however the bears will attempt to stop the recuperation at $2,200. On the off chance that that occurs, the chance of a break beneath the 50-day SMA increments. The pair may at that point plunge to $1,900.
This negative view will be invalidated in the near term if the cost rises over $2,200. That will propose solid purchasing at lower levels. The pair will at that point attempt to flood to the overhead opposition at $2,332.
BNB price analysis
The bulls’ failure to push BNB (BNB) beyond $260 may have caused short-term traders to cash in their profits.
This initiated a pullback, which fell below the moving averages on Dec. 18. The 20-day EMA ($240) has started to turn downwards, and the RSI has dipped below the midpoint, suggesting that the bears are trying to gain the upper hand. This increases the likelihood of a decline to $223.
If the price bounces off the $223 support with strength and rises above the moving averages, it will signal strong buying at lower levels. The BNB/USDT pair could then oscillate between $223 and $260 for a few more days.
XRP price analysis
The bulls’ inability to push XRP (XRP) back above the moving averages over the past few days has triggered another wave of selling.
The bears will attempt to drive the price down to the strong support at $0.56. If the price bounces off this level and rises above the 20-day EMA ($0.62), it could indicate that the XRP/USDT pair may remain stuck between $0.73 and $0.56 for a while longer.
The first sign of weakness will be a break and close below the strong support at $0.56. This could open the door for a drop to the key support at $0.46. The next leg of the uptrend is likely to start after buyers push the price above $0.74.
Solana price analysis
Solana (SOL) turned down from $79.50 on Dec. 15 and reached the 20-day EMA ($67.77) on Dec. 18.
The bears have pushed the SOL/USDT pair to the 20-day EMA, which is a crucial support level for crypto traders. If the price closes below this level, it could trigger a deeper pullback to the 50-day SMA ($57.83) and even the psychological support at $50.On the other hand, the bulls need to defend the 20-day EMA and propel the price above $80 to prevent a further decline. If they succeed, they could set the stage for a potential rally to $100.
Cardano price analysis
On Dec. 13, Cardano (ADA) surged past the $0.65 overhead resistance, but the bullish momentum was short-lived. The price reversed on Dec. 14 and dropped below $0.65.
The swift retreat from $0.68 suggests that the bulls are taking profits quickly. This could mean that the ADA/USDT pair could consolidate its recent gains in the upcoming days. If the price rebounds off the 20-day EMA ($0.53), the pair may rise to $0.68 and stay stuck between these two levels for a while.
A break below the 20-day EMA could trigger more selling, allowing for a further decline to the strong support at $0.46.
Avalanche price analysis
On Dec. 16 and 17, traders drove the price of Avalanche (AVAX/USDT) above the overhead resistance of $42.50, though the gains were short-lived.
The pair has since started to pull back, with a strong support level at the 20-day EMA ($33). If the price rebounds from this level with strength, it will indicate that the sentiment remains positive and buyers are taking advantage of dips. A break and close above $45 would signal the resumption of the uptrend, with the next target at $50.
On the other hand, if the price drops below the 20-day EMA, it would suggest that the bulls are exiting the market, leading to a deeper correction to $25.
Dogecoin price analysis
Dogecoin (DOGE) experienced a rebound from the 20-day EMA ($0.09) on Dec. 16, but the bulls were unable to keep the momentum going.
The price trended downwards on Dec. 17 and dropped below the 20-day EMA on Dec. 18. The 20-day EMA is flattening, and the RSI is close to the midpoint, suggesting a balance between supply and demand.
If the crypto remains beneath the 20-day EMA, the bears will have the upper hand. The DOGE/USDT pair may then plunge to the 50-day SMA ($0.08).
For the bulls to turn the tide, they must quickly push the price back above the 20-day EMA. The bullish sentiment could pick up after buyers break through the $0.11 resistance.
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