Bitcoin (BTC) has been able to maintain its yearly gains, but is finding it difficult to break above its 17-month highs of $44,700 set earlier this month. This indicates that the market players are not actively buying prior to the decision on the spot Bitcoin exchange-traded funds (ETFs) applications in January.
It is difficult to predict the reaction of the traders even if one or more spot Bitcoin ETFs are approved. If there is not enough demand for the ETFs post approval, it may turn into a “sell the news” event, while a strong influx into the ETFs in the first few days could lead to a spike in Bitcoin’s price.
The lack of clarity about Bitcoin’s short-term price action has increased the buying interest in altcoins. That is one of the reasons for the decrease in Bitcoin’s dominance from about 55% to 51% in the past few days.
Will Bitcoin resume its uptrend or succumb to profit booking? Could altcoins keep up their outperformance? Let’s analyze the charts of the top-10 crypto such as Crypto Polkadot, Crypto Telegram Channel, Crypto YouTube Channel, Crypto Dot and Crypto Avax to find out.
Bitcoin price analysis
On Dec. 29, Bitcoin fell below the 20-day exponential moving average ($42,597) but was still trading within the boundaries of an ascending triangle pattern.
The relative strength index (RSI) has dropped close to the midpoint, suggesting that the bullish momentum is waning. In order to take back control, buyers must push the price above $44,700 and complete the triangle, which would result in a potential rise to the pattern target of $49,178.
On the other hand, if the triangle is broken down, the bullish outlook will become invalid. This could lead to increased selling pressure, dragging the BTC/USDT pair down to the 50-day simple moving average ($40,295). The bulls may attempt to stop the decline at this level, but if unsuccessful, the next support level should be $37,980.
Ether price analysis
On Dec. 27, Ether (ETH) closed above the descending triangle pattern and attempted to initiate the next uptrend on Dec. 28. But the bears did not want to give up, selling at $2,445 and pushing the price back below $2,403. The price dropped to the breakout level from the channel, where buyers stepped in, indicating that the bulls are attempting to turn the level into support.
If they succeed, the ETH/USDT pair will try to resume the uptrend towards the target objective of $3,000. On the other hand, the bears may attempt to drag the price below the 20-day EMA ($2,269) and initiate a decline to the channel’s support line near $2,000.
BNB price analysis
BNB (BNB) attempted to breach its pattern target of $333 on Dec. 28, however, it failed to stay above that level, suggesting traders taking profits.
Currently, the BNB/USDT pair could pull back to the 50% Fibonacci retracement level of $300, which is likely to act as a strong support. If the price rebounds from $300, bulls will again try to push the price towards the significant resistance at $350.
Alternatively, if the $300 support is broken, the correction may extend to the 61.8% Fibonacci retracement level of $291 and then to the neckline. The bulls are expected to defend the neckline with vigor.
Solana price analysis
Solana (SOL) surged from the 50% Fibonacci retracement level of $96 on Dec. 29, indicating that traders are still optimistic and buying the dips.
The two moving averages are moving upwards, and the RSI is in the bullish zone, meaning that bulls are in control. The SOL/USDT pair could reach the recent high of $126, where the bears are likely to put up strong resistance. If the bulls manage to break through this barrier, the pair may surge to $156.
The bears need to drive the price below the 20-day EMA ($92) to indicate a possible trend reversal in the short term. The pair could then plunge to the 50-day SMA ($71).
XRP price analysis
XRP (XRP) attempted a rally on Dec. 28, but the bulls could not clear the hurdle at the downtrend line.
The crypto price has been trading near the moving averages for the past few days, indicating indecision between the bulls and the bears. The flattish moving averages and the RSI near the midpoint suggest that the XRP/USDT pair may extend its stay inside the $0.56 to $0.67 range for some more time.
Buyers will have to drive the price above $0.67 to seize control. The pair could then rise to $0.74, which is likely to act as a strong resistance. The short-term trend will turn bearish if the price plummets below $0.56.
Cardano price analysis
The bulls attempted to push Cardano (ADA) over the symmetrical triangle pattern on Dec. 28, but the long wick on the day’s candlestick shows that their efforts were not successful.
The bulls have managed to keep the price from dropping below the 20-day EMA, which is a minor advantage. If they can move the ADA/USDT pair above the triangle, the uptrend may resume and the price could reach $0.80. The triangle’s support line is the key level that the bulls must defend, as a break below it could lead to a decline to $0.50 and then to $0.46.
Avalanche price analysis
The AVAX/USDT pair has reached a strong support at $38, an important level for the crypto AVAX to watch. Bulls are attempting to defend the $38 support and initiate a recovery. If successful, the pair could be range-bound between $38 and $50 for some time, as indicated by the flat 20-day EMA ($40) and the RSI above 57.
However, if the price drops below $38, it could attract further selling pressure, causing the pair to slide to $34 and eventually to $31.
Dogecoin price analysis
Dogecoin (DOGE) has been trading close to the 20-day EMA ($0.09), suggesting an equilibrium between buyers and sellers.
The flat 20-day EMA and the RSI near the midpoint do not give any party a clear advantage. In the short-term, the crypto dot may remain between the 50-day SMA ($0.09) and the $0.10 resistance.
The bulls will take control if the price breaks above $0.10, potentially driving the DOGE/USDT pair towards $0.16. On the other hand, if the bears push the crypto avax below the 50-day SMA, it could drop to $0.07.
Polkadot price analysis
The price of Polkadot (DOT) is close to the resistance level of $7.90, which is an important point to watch in the near future.
The upward-sloping moving averages suggest that buyers have an advantage, but the negative divergence on the RSI shows that the bullish momentum may be weakening. The $7.90 level could be the site of a fierce battle between bulls and bears.
If the price bounces off $7.90, the DOT/USDT pair could attempt to reach $10, where sellers are expected to put up a strong defense. On the other hand, if the price falls below the 20-day EMA ($7.78), the correction could extend to the 50-day SMA ($6.41).
Polygon price analysis
MATIC/USDT pair experienced a decline from $1.09 on Dec. 27 and went below the breakout level of $1 on Dec. 29, likely due to profit taking by the bulls.
However, the bulls demonstrated strong buying at lower levels. If the price holds above $1, it could retest $1.09. The rising 20-day EMA ($0.89) and the RSI in the positive zone indicate that the bulls are in control. If the $1.09 resistance is broken, the MATIC/USDT pair could rally to $1.20 and then to $1.50.
Conversely, if the price dips and stays below $1, the pair could drop to the 20-day EMA. The bears would have to push the price below this support to suggest a range-bound action between $0.70 and $1.
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