Following the Dec. 11 fall, Bitcoin (BTC) has failed to rebound significantly, indicating that there is selling pressure on relief rallies. According to Glassnode data, entities which have held BTC for less than 155 days sent $1.93 billion and $2.08 billion worth of Bitcoin to exchanges on Dec. 11 and Dec. 12 respectively. This is the highest single-day selling since June 2022. Speculators seem to be in a rush to dump their holdings.
However, lower prices have attracted buyers. Material Indicators pointed out that “institutional sized” bids could be seen, but it is uncertain if it is accumulation or a short-term trading opportunity with dips being bought and rallies being sold.
Cointelegraph contributor Marcel Pechman analyzed derivatives data and concluded that Bitcoin is on track to reach $50,000 despite the recent correction. He further added that the chances of “cascading liquidations” were low, as the correction seems to have been “primarily driven by the spot crypto market”.
What are the important support levels on Bitcoin that are likely to hold? Could altcoins also start a relief crypto rally? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin is trading above the 20-day exponential moving average ($40,870), but the bulls have been unable to launch a strong recovery rally. This indicates that investors are hesitant to buy at higher levels.
The negative divergence on the relative strength index (RSI) suggests that the positive momentum could be weakening. This puts the 20-day EMA at risk of breaking down. If that happens, the BTC/USDT pair could fall to the 50-day simple moving average ($37,707).
On the other hand, the bulls are likely to have other plans. They will attempt to push the price to the overhead resistance at $44,700. This level is expected to witness a fierce battle between the bulls and the bears. If the buyers prevail, the pair could rise to $48,000.
Ether price analysis
The feeble bounce of Ether (ETH) from the strong support of $2,200 on Dec. 12 reveals a lack of demand at lower levels.
The bears are attempting to take advantage of the situation by pushing the price below the 20-day EMA ($2,192). If they can maintain the lower levels, the selling could intensify, and the ETH/USDT pair could plunge to the 50-day SMA ($2,029).
Conversely, if the crypto polkadot price rises above $2,250, it will indicate that buyers are still present at lower levels. The pair will then try to retest the 52-week high at 2,403. A surge above this resistance could trigger the next leg of the uptrend to $3,000.
BNB price analysis
The BNB/USDT pair appears to be forming an inverse head-and-shoulders pattern, which may be completed if bulls manage to break and close above the neckline near $275. The 20-day EMA ($238) is rising, and the RSI is in the bullish zone, indicating that bulls have the upper hand. A break above the neckline could result in a new uptrend toward the pattern target of $333.
In case of a pullback, the crypto polkadot and crypto avax may find support near the moving averages. On the other hand, a break below the moving averages could mean that bulls are losing control, and the crypto what to buy could then drop to the critical support at $223.
XRP price analysis
The bulls tried to hold back XRP’s (XRP) fall at the 50-day SMA ($0.62) on Dec. 11, but failed to move the price above the 20-day EMA ($0.63).
The selling resumed on Dec. 13, and the price dropped below the 50-day SMA. Sellers will attempt to push the price towards the critical support at $0.56. This level is likely to attract strong buying from the bulls. The 20-day EMA has flattened, and the RSI is just under the midpoint, indicating a potential range-bound action in the near future.
Buyers will regain control after they drive the price above $0.67. The XRP/USDT pair could then ascend to the overhead resistance at $0.74.
Solana price analysis
Solana (SOL) saw a rebound from the 20-day EMA ($64.46) on Dec. 11, but the bulls were unable to keep the recovery going.
The bears sold near $72 and the price was pulled back to the 20-day EMA on Dec. 13. The negative divergence on the RSI indicates that the bullish momentum is weakening. If the price falls below the 20-day EMA, the selling could intensify, and the SOL/USDT pair may drop to the 50-day SMA ($53.73).
Alternatively, if the price rises from the current level, it indicates that the bulls are still defending the 20-day EMA with determination. The pair could then move up to $78.
Cardano price analysis
Cardano (ADA) is trading in a range between $0.65 and the 50% Fibonacci retracement level of $0.51, suggesting that investors are buying dips.
The uptrend is supported by the rising moving averages and the RSI in the overbought zone, indicating that the path of least resistance is to the upside. The bulls will try to push the price above $0.65. If successful, the ADA/USDT pair could rally to $0.70 and then $0.78.
The bears will have to sink the price below the 20-day EMA ($0.47) and the critical support at $0.51 to invalidate the bullish crypto breaking today.
Dogecoin price analysis
Dogecoin (DOGE) moved lower from the resistance level of $0.11 on Dec. 11 and slipped to the 20-day EMA ($0.09) on Dec. 13.
A strong rebound from the 20-day EMA will indicate that investors keep on purchasing on dips. The bulls will then attempt to break through the limitation at $0.11 again. If they succeed, the DOGE/USDT pair could surge to $0.14 and later to $0.16.
This optimistic view will be invalidated if the price continues to fall and penetrates below the 20-day EMA. If that happens, the pair could plunge to the 50-day SMA ($0.08) and eventually to $0.07.
Avalanche price analysis
The bulls drove the price of Avalanche (AVAX) beyond the resistance of $38 on Dec. 11 and 12, but couldn’t maintain the uptrend. This resulted in a pullback on Dec. 13, but buyers aggressively purchased the dip to the 38.2% Fibonacci retracement level of $34.36, suggesting the AVAX/USDT pair could retest the high at $42.89.
Conversely, if the price fails to stay above $38, it will show that bears still view the rallies as a selling opportunity. A drop below $34.36 may indicate a downside target to the 20-day EMA ($28.22).
Polkadot price analysis
Polkadot (DOT) saw its rally pause just beneath the resistance at $7.90 on Dec. 9, likely due to traders taking profits.
The crypto rebounded off the 20-day EMA ($6.19) on Dec. 11, but bulls couldn’t push it past $7.36, suggesting bears are active. Sellers could try to bring the DOT/USDT pair back to the 20-day EMA, which is the key level to watch.
A recovery from the 20-day EMA suggests the sentiment remains positive and traders are buying on dips. The bulls will then attempt to clear the $7.90 barrier one more time. On the contrary, a break below the 20-day EMA could cause the pair to slide to the 50-day SMA ($5.35).
Polygon price analysis
MATIC’s surge above $0.89 on Dec. 8 was short-lived as the bears pushed the price back below the level on Dec. 11.
Buyers tried to lift the price back above $0.89 on Dec. 12, but the bears defended their stance. Sellers are attempting to further strengthen their position by dragging the price beneath the 20-day EMA ($0.83). If they succeed, it could suggest the start of a deeper correction towards $0.70.
This pessimistic outlook will be invalidated in the short-term if the price abruptly turns around from its current position and crosses over $0.89. This will indicate strong buying at lower prices. The pair may then rally to $0.95 and later to $1.
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