Bitcoin (BTC) price fell slightly this week, but the intraday rise to the $44,000 level indicates that bulls are in no hurry to liquidate their positions. Data from the popular HODL Waves indicator shows that investors who purchased Bitcoin between December 2020 and December 2021 are holding the coin.
Investors did not sell to show strength because they expected higher levels in the future. In its 2024 cryptocurrency forecast, asset manager VanEck said Bitcoin would hit record highs, driven by “political events and regulatory changes following the US presidential election.”
As Bitcoin has rallied over the past few days, investors have turned to altcoins such as Ethereum (ETH), Cardano (ADA), and Solana (SOL). Research firm Santiment remains positive about Bitcoin’s prospects. On December 7, it was stated that Bitcoin could surge to $50,000 if FUD increases.
Will Bitcoin find buyers at lower levels and resume its claim towards $48,000, or will the action shift towards altcoins? Let’s analyze the top 10 cryptocurrencies chart to find out.
Bitcoin Price Analysis
Bitcoin fell from $44,500 on December 5, indicating profit booking by short-term traders. Pullbacks are usually shallow in a strong uptrend and do not last long as bulls eagerly buy the dip.
If the price rises from current levels and passes $44,500, it would signal the start of the next journey towards $48,000. Sellers must defend this level with all their might.
If the price declines from $44,500, the first downward support is at the 38.2% Fibonacci retracement level at $41,862. If this level is broken, the BTC/USDT pair could plunge towards the 20-day exponential moving average ($39,868). Buyers will need to defend this level to keep the bullish momentum intact.
Ether Price Analysis
Bears tried to pull Ethereum (ETH) below the $2,200 breakout level on December 6, but bulls held on. This means buyers are trying to turn $2,200 into support.
The ETH/USDT pair broke above $2,200, completing a bullish ascending triangle pattern. The target price for this bullish setup is $3,400. But a straight dash won’t get you any higher. The seller will try to cut off the loan around $2,500 and again around $3,000.
An important support zone for the bears is between $2,200 and the 20-day EMA ($2,147). If the price slides below this area, several aggressive bulls may become trapped, leading to prolonged liquidation. This could start a steep correction towards $1,900.
BNB price analysis
BNB (BNB) remains in the $223-$239 range, indicating a balance in supply and demand.
Bulls have pushed the price above the 20-day EMA ($233) and will try to overcome the $239 barrier. If successful, the BNB/USDT pair is likely to gain momentum and leap towards the $265 hurdle. A breakout and close above this level completes a bullish inverse head and shoulders pattern.
This optimistic outlook will be invalidated in the near term if the price declines and falls below $223. This could lead to a fall to the important support level of $203.
XRP Price Analysis
XRP (XRP) rebounded from the 20-day EMA ($0.62) on December 6, indicating buying at lower levels. The bulls will next attempt to push the price above $0.67.
But sellers don’t seem to give up easily. They will attempt strong resistance at $0.67. If the price declines from current levels, the XRP/USDT pair is likely to find support at the 20-day EMA.
If the 20-day EMA bounces above the $0.67 barrier, the XRP/USDT pair is likely to reach $0.74. This level can be a difficult obstacle to overcome.
For the bears to regain control, they need to keep the price below the 50-day SMA ($0.61).
Solana Price Analysis
Solana emerged on December 7 and surpassed its 52-week high of $68.20. This marks the resumption of her upward trend.
The rally above $68.20 nullified the bearish H&S pattern, which was a positive sign. This induces buying from bulls who were on the sidelines and covering short by aggressive bears. There is a small hurdle at $78, but if scale increases, the SOL/USDT pair could surge to $100.
If bears want to get back in the game, they will need to get the price below the 20-day EMA ($60). The next stop on the downside is $51.
Cardano Price Analysis
Cardano has been on a roll since closing above $0.40 resistance on December 4th. Buyers pushed the price above $0.46 on December 7th, and again above $0.52 on December 8th.
On the upside, the next level to watch is $0.60, but the overbought level in RSI suggests that a minor correction or consolidation is possible in the near term. If the bulls don’t deviate significantly from current levels, the likelihood of a rally increases to $0.70.
Conversely, if the ADA/USDT pair declines from current levels, it is likely to find support at $0.52 and again at $0.46. A slip below this support would clear a possible downside path to the 20-day EMA ($0.41).
Dogecoin price analysis
Dogecoin (DOGE) surged near $0.11 on December 6, but the gains failed to sustain higher levels, as seen by the long wick of the candlestick.
A small advantage in favor of the bulls is that they do not allow the price to remain below $0.10. This means every little dip is being bought. The bulls will again try to push the price above the $0.11 resistance. If that happens, the DOGE/USDT pair could soar to $0.14 and later $0.16.
The first sign of weakness would be a decline below the 20-day EMA ($0.09). This means profit booking for short-term traders. The pair could then fall to $0.07.
Related: Bitcoin’s many deaths: Has the cryptocurrency market passed the ‘point of no return’?
Avalanche Price Analysis
Avalanche (AVAX) is facing resistance near $28, but the bulls are not giving ground to the bears. This means the bull is maintaining control.
The bulls will attempt to resume the uptrend and push the price up to the overhead resistance of $31. This level is likely to induce aggressive selling by bears. Overbought levels in RSI also indicate the risk of a near-term correction or sideways move.
The first support level below is $24.69. If this level is broken, the AVAX/USDT pair may fall towards the 20-day EMA ($22.37). The next support level is much lower at $18.90, so buyers are expected to defend this level fiercely.
Chainlink Price Analysis
Chainlink (LINK) found support at the 20-day EMA ($15.04) on December 7, indicating that sentiment remains positive and traders are buying on dips.
The bulls continued buying on December 8, with the price exceeding the indirect resistance level of $16.60. If buyers hold the breakout, it indicates a resumption of the uptrend. The LINK/USDT pair could rise to $18.30 and then rise to $19.50.
Conversely, if the price declines and closes below $16.60, the downtrend indicates continued activity at higher levels. This would increase the chances of a decline below the 20-day EMA. The pair could then fall to $13.
Polygon Price Analysis
Polygon (MATIC) has maintained a range between $0.89 and $0.49 over the past few days. Buying forces try to push the price above the overhead resistance line and start a new uptrend.
The 20-day EMA ($0.80) is starting to rise and the RSI is near the overbought zone, indicating that the path of least resistance is to the upside. If buyers push the price above $0.89, the MATIC/USDT pair could reach the psychological level of $1. This level could again provide strong resistance for the bulls.
If the price falls from $1 but bounces back from $0.89, it indicates that the bulls are still in control. This could increase the chances of a rally to $1.20. If there is a downtrend and the price stays below the 50-day SMA ($0.75), the bears will be back in the driver’s seat.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.