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Price analysis 12/4: SPX, DXY, BTC, ETH, BNB, XRP, SOL, ADA, DOGE, LINK

Bitcoin (BTC) and Ether (ETH) pushed above their respective resistance levels on Dec. 4, suggesting that the bulls are not about to slow down. The higher the prices climb without a meaningful correction, the greater the FOMO among traders. When traders try to catch up with prices, it could lead to a blow-off top before a correction occurs.

Bybit, a cryptocurrency exchange, said in its 4th quarter report that institutional traders held 35% of their assets in Bitcoin, 15% in Ether, 45% in stablecoins, and only a small 5% in the rest of the altcoins. This indicates that institutional investors still have enough power to purchase the cryptocurrency of their choice by selling stablecoins.

Differences between Web 1.0, 2.0 and 3.0

Matrixport research head Markus Thielen stated in a recent note that the three previous crypto bear markets were followed by a three-year bull cycle, and this time is going to be no different, with 2023 being the first year. Thielen predicts Bitcoin to reach $60,000 by April and $125,000 by the end of 2024.

Will the bulls be able to maintain the gains in Bitcoin and some altcoins, or will higher levels attract aggressive selling by the bears? Let’s analyze the charts to find out.

S&P 500 Index price analysis

On Nov. 20, the bulls drove the S&P 500 Index (SPX) above the 4,541 resistance level, preventing the bears from pushing the price back below the breakout point.

The index may face selling pressure between 4,607 and 4,650. If the price falls from the overhead zone but does not dip below 4,541, it will indicate that bulls have transformed the level into support. This could lead to a surge above 4,650 and eventually to 4,800.

On the other hand, the bears could try to pull the price below the 4,541 breakout level and then the 20-day exponential moving average (4,494). This would open the way for a drop to the 50-day simple moving average (4,364).

U.S. Dollar Index price analysis

The U.S. Dollar Index (DXY) is attempting to kick off a recovery from the 61.8% Fibonacci retracement level of 102.55, yet the bulls are probably going to confront solid resistance at the 20-day EMA (104.02).

If the price turns down sharply from the 20-day EMA, it will imply that the sentiment stays negative and traders are selling on rallies. That will boost the chances of a break below 102.55. If that happens, the selling could intensify, and the index may plunge to the solid support at 101.

The first indication of strength will be a break and close above the 20-day EMA. That will point to the start of a stronger relief rally to 104.55 and later to the 50-day SMA (105.41).

Bitcoin price analysis

Bulls are dominating the market as bears cannot break the $40,000 level. The recent surge of the price has taken the RSI into the overbought zone, suggesting that a minor correction or consolidation might take place. At times, when the trend is strong, the RSI may stay in the overbought area for a long time. The next target is $48,000 since there is no major resistance level in between.

It is becoming harder for bears to put a stop to the rally. If sellers want to make a comeback, they must prevent the rally at the current level and pull the BTC/USDT pair below the 20-day EMA ($37,926), which may be the start of a deeper correction.

Ether price analysis

Ether (ETH) sustained its upward trajectory and surpassed the $2,200 resistance on Dec. 2. If the price closes above this resistance, it will finish a bullish ascending triangle pattern.

The upsloping 20-day EMA ($2,063) and the RSI near the overbought zone suggest that bulls are in control. The projected target of the breakout from the triangle is $3,400. Nevertheless, the bears may not surrender easily and will attempt to restrict the rally at $2,500 and again at $3,000.

The first indication of weakness will be a break and close below the breakout level of $2,200. This will suggest that the breakout may have been a fake move. The bears will solidify their position further if they pull the ETH/USDT pair below the 20-day EMA.

BNB price analysis

BNB (BNB) has been trading in a narrow band between $239 and $223 for the past few days, suggesting that buyers and sellers are unable to make up their minds.

The downward-sloping 20-day EMA ($233) and the RSI just below the midpoint indicate that bears have a slight edge. If buyers can overcome the resistance at $239, the BNB/USDT pair could gain momentum and rally to $265.

On the contrary, if the price turns down from $239, the range-bound action may persist for some more time. The selling could intensify if the price drops below $223.

XRP price analysis

On Dec. 2, XRP (XRP) rose above the 20-day EMA ($0.62), but the bulls were unable to take advantage of this move, suggesting a lack of demand at higher levels.

On Dec.4, the XRP/USDT pair formed a large outside-day candlestick pattern, which indicates a fierce battle between bulls and bears. The 20-day EMA ($0.62) is flattening out, and the RSI is close to the midpoint, indicating an equilibrium between supply and demand. This could mean that the pair will oscillate between $0.67 and $0.56 for a while.

If buyers can push the price above $0.67, the pair could rally to $0.74. Conversely, if the price drops below $0.56, the pair might drop to $0.46.

Solana price analysis

Buyers are attempting to propel Solana (SOL) beyond the overhead resistance of $68.20 and invalidate the bearish head-and-shoulders pattern.

The failure of the bearish pattern is a bullish sign as it traps the aggressive bears, leading to a short squeeze. Additionally, buyers who have been sitting on the sidelines due to the negative setup jump in to buy. If bulls drive the price above $68.20, the SOL/USDT pair could surge to $85.

Conversely, if bears wish to impede the upside, they will need to swiftly pull the price below the 20-day EMA ($57). That could open the doors for a retest of the essential support at $51.

Cardano price analysis

On Dec. 4, buyers pushed Cardano (ADA) past the overhead resistance of $0.40, but they are having difficulty preserving the higher levels.

The long wick on the day’s candlestick indicates that the bears have not given up and are selling on rallies. If the price remains below $0.40, the bears will attempt to strengthen their position by dragging the ADA/USDT pair below the 20-day EMA ($0.38). If this support level is breached, the pair could drop to the 50-day SMA ($0.34).

On the upside, a close above $0.40 could drive the price to $0.42 and then to the 52-week high near $0.46. This level is likely to meet strong selling from the bears, but if the buyers have enough strength, the pair could surge to $0.52.

Dogecoin price analysis

Dogecoin (DOGE) has been in a strong recovery for the past several days. The bulls pushed the price above $0.09 on Dec. 4, indicating strong demand at higher levels.

Both moving averages are sloping up, and the RSI is near the overbought zone, suggesting that the path of least resistance is to the upside. The DOGE/USDT pair could next rally to the psychological level of $0.10. Sellers are expected to mount a strong defense in the zone between $0.10 and $0.11. The 20-day EMA ($0.08) remains the critical level to watch out for on the downside. A break and close below it will indicate that the bulls are booking profits. This may sink the pair to the 50-day SMA ($0.07). Describing the differences between web 1.0, web 2.0 and web 3.0, it is evident that fake AI, fake AI generator and other fake AI applications are used in web 3.0, while web 1.0 and web 2.0 are not equipped with such technology.

Chainlink price analysis

Chainlink (LINK) is in an uptrend. Buyers purchased the dip, pushing the price to the local high at $16.60. This is an important level to watch out for.

The upsloping moving averages and the RSI in the positive territory indicate that the bulls are in command. If they propel the price above $16.60, the LINK/USDT pair could signal the resumption of the uptrend. The pair may then sprint toward $18.30.

Instead, if the price turns down from $16.60, it will indicate that the bulls remain active at higher levels. The first sign of weakness will be a break and close below the 20-day EMA ($14.58). That could pull the price down to $13.

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