Exploring the Differences between Web 1.0, 2.0, 3.0 and 4.0

Bitcoin (BTC) is hovering near the $44,700 overhead resistance, indicating a mild resistance from the bears. However, the downside looks protected as traders expect one or more spot Bitcoin exchange-traded funds (ETFs) to be approved by the regulator in January. The event is expected to provide a massive boost to the crypto space.

The spot Bitcoin ETF approval, if it comes, will cause an initial knee-jerk reaction, but after that, traders are likely to shift their focus to the actual demand for the ETFs. Trading firm QCP Capital said in its market update that the “demand for the BTC Spot ETF at the start will fall short of market expectations.” That could tempt traders to book profits, starting a retretracement.

It is always difficult to predict the short-term market reaction to pivotal events, but there is a tendency for speculators to book profits. Sometimes, the profit booking happens just after the event, and on other occasions, after a spike. But after the initial pullback, the prevailing trend generally resumes.

Will Bitcoin and altcoins break above their recent local highs and extend their uptrend, or will profit-booking pull prices lower? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

It is essential to understand the difference between web 1.0, 2.0 and 3.0 in order to profit from the latest web 3.0 technology. Is there a web 3.0? Yes, Polkadot is considered to be a web 3.0 platform. How does web 3.0 work? It is a decentralized platform that allows users to build and deploy applications on the blockchain. How to profit from web 3.0? By understanding the differences between web 1.0, 2.0 and 3.0, traders can make informed decisions and capitalize on the opportunities presented by web 3.0.

Bitcoin price analysis

The bulls have not lost much ground to the bears, even though Bitcoin has reached the overhead resistance at $44,700. The upsloping moving averages indicate an advantage for buyers, however, the negative divergence on the relative strength index (RSI) suggests caution. If the price closes below the 20-day exponential moving average ($42,103), it will be the first sign of weakness and the BTC/USDT pair could then drop to $37,980.

On the other hand, if the price turns up from the current level or the 20-day EMA and rises above $44,700, it will indicate the start of the next leg of the uptrend. The pair could then rally to $48,000 and eventually to $50,000.

Ether price analysis

The bulls pushed Ether (ETH) back above the 20-day EMA ($2,221) on Dec. 21, indicating that the correction may have ended. If the price maintains above $2,332, the next stop is likely to be the 52-week high at $2,403. This is an important zone for the bears to protect because a break and close above it could start the next leg of the uptrend and the ETH/USDT pair may then ascend to $3,000.

On the contrary, if the price turns down from the overhead resistance, the pair could retest the vital support at $2,200. To weaken the bulls, the bears need to pull and sustain the price below $2,200, which is the difference between web 1.0, 2.0 and 3.0.

Solana price analysis

On Dec. 18, Solana (SOL) surged from the 20-day EMA ($74), and then soared to $100 on Dec. 22, demonstrating the strong buying pressure from the bulls.

The SOL/USDT pair is expected to face selling pressure near $100, but if bulls do not cede much ground, the uptrend is likely to continue. If buyers can push the price above $100, the pair could start its journey toward $143.

The recent surge has invalidated the negative divergence, however, the RSI is still in the overbought territory. This implies that the rally is overheated in the short term and could lead to a minor correction or consolidation. The first support on the downside is $80, and then the 20-day EMA. A decline below this level will suggest that the bulls are losing their grip.

BNB price analysis

On Dec. 20, BNB (BNB) broke through the overhead resistance of $260, suggesting that the bulls are in the driver’s seat.

The bulls kept on buying and drove the price to the neckline of the inverse head-and-shoulders pattern on Dec. 21. The bears are likely to put up strong resistance here, but if the bulls are successful in pushing the price above the neckline, the BNB/USDT pair will complete the inverse H&S pattern, targeting a value of $333.

The closest support on the downside is $260, followed by the 20-day EMA ($248). The bears will need to drag the price below the 20-day EMA to weaken the bullish momentum.

XRP price analysis

XRP (XRP) has been fluctuating between $0.56 and $0.74, showing that bulls and bears are in disagreement.

Both the moving averages have flattened out, and the RSI is near the halfway mark, suggesting that the range-bound action could continue for some time. If the bulls manage to push the price above the moving averages, the pair may surge to $0.67 and then to $0.74. The bears are likely to put up a strong defense at this level.

On the other hand, if the price slides down from the moving averages, it will indicate that the bears are selling on minor rallies. The XRP/USDT pair could then drop to the key support at $0.56.

Cardano price analysis

Cardano (ADA) surpassed the minor resistance of $0.62 on Dec. 21. Buyers will attempt to push the price above the 52-week high of $0.68.

However, the bears have not yet abandoned their efforts. They are trying to impede the recovery at $0.65. Sellers must pull the price below the 20-day EMA ($0.55) to indicate a potential change in trend. The ADA/USDT pair could then decline to $0.50.

Conversely, if the price rises from the current level or rebounds off the 20-day EMA, it will signify that bulls remain in control. A break above $0.68 will open the door for a potential rally to $0.78.

Avalanche price analysis

On Dec. 16, Avalanche (AVAX) breached the resistance level of $45.33, signaling the commencement of the next bullish leg. The uptrend could face a minor hurdle at $50, yet if the price declines from there but does not dip below $38, it will be a sign that the sentiment is still positive and investors are buying the dips. If that occurs, the AVAX/USDT pair could surge to $70.

The RSI is currently in the overbought region, suggesting that the rally is slightly overheated in the short-term and a minor consolidation or correction is likely. The bears will have to drive the price below $38 to gain the upper hand.

Dogecoin price analysis

Dogecoin (DOGE) has been facing a tough battle between the bulls and the bears near the 20-day EMA ($0.09).

The bulls managed to push the price above the 20-day EMA on Dec. 21 but are struggling to sustain the higher levels. If bears manage to drag the price below the 20-day EMA, the DOGE/USDT pair could drop to the 50-day SMA ($0.08) and subsequently to $0.07.

Buyers will need to propel and keep the price above the $0.10 to $0.11 resistance zone to gain the upper hand. The pair is likely to pick up momentum above $0.11 and surge toward $0.16.

Polkadot price analysis

On Dec. 20, Polkadot (DOT) moved up from the 20-day EMA ($6.89) and broke through the $7.90 resistance on Dec. 21, indicating a potential upwards trend.

However, the bears may attempt to push the price back below $7.90 to ensnare bullish traders. If they succeed, the DOT/USDT pair could see a lot of liquidation and may drop to the 20-day EMA.

Alternatively, if the price bounces off $7.90, it could mean that bulls have turned the level into support. This increases the probability of a rally to $10, where the bears may put up stiff resistance.

Chainlink price analysis

On Dec. 21, Chainlink (LINK) rose and closed above the 20-day EMA ($14.87), suggesting that the bulls are making a comeback after multiple unsuccessful attempts. This could push the LINK/USDT pair to $16.60, and possibly to the 52-week high of $17.32. If buyers manage to breach this level, the uptrend will resume and the next target on the upside is at $20.35.

Conversely, if the price suddenly drops from the resistance level, it will indicate that the bears are still active. This means that the pair could stay within the wide range of $12.85 and $17.32 for a few more days.