Bitcoin (BTC) failed to rally sharply after its decline on December 11, suggesting selling pressure on the relief rally. Short-term holders (STHs), entities that hold Bitcoin for 155 days or less, sent $1.93 billion worth of Bitcoin to exchanges on December 11 and $2.08 billion on December 12, according to Glassnode data. Yes. The $2 billion mark was reached in June 2022. This shows that speculators are in a hurry to sell off their holdings.
But the low end is attracting buyers. Trading Resources Critical Indicators suggested we could see “institutional scale” bidding, but added it was unclear whether it was an accumulation or a short-term trading opportunity through a sharp buying and selling rally.
Cointelegraph contributor Marcel Pechman predicted Bitcoin would hit $50,000 despite the recent correction after analyzing derivatives data. He added that a “cascading liquidation” was unlikely as the correction appeared to be “primarily driven by the spot market.”
What is the critical support level that Bitcoin can sustain? Could altcoins also begin a rescue rally? Let’s analyze the top 10 cryptocurrencies chart to find out.
Bitcoin Price Analysis
Bitcoin remains above its 20-day exponential moving average ($40,870), but the bulls have failed to launch a strong relief rally. This means hesitating to buy at higher levels.
A negative divergence in the Relative Strength Index (RSI) suggests that positive momentum may be slowing. This risks breaking the 20-day EMA. If that happens, the BTC/USDT pair could plummet to the 50-day simple moving average ($37,707).
Meanwhile, the bulls likely have other plans. They will try to push the price up to the overhead resistance of $44,700. At this level, a fierce fight is expected between bulls and bears. If buyers win, the pair could soar to $48,000.
Ether Price Analysis
Ethereum (ETH)’s shallow bounce from its strong $2,200 support on December 12 suggests a lack of demand at lower levels.
The bears are trying to gain the upper hand by pushing the price below the 20-day EMA ($2,192). If it holds lower levels, the selling could accelerate and the ETH/USDT pair could fall towards the 50-day SMA ($2,029).
Conversely, if the price rises and rises above $2,250, it means that lower levels will continue to attract buyers. The pair will then retest its 52-week high of 2,403. A rally above this resistance could begin the next phase of the uptrend towards $3,000.
BNB price analysis
The price action of BNB (BNB) formed an inverted head and shoulders pattern, which was completed on the break and closed above the neckline near $275.
The 20-day EMA ($238) has started to rise and the RSI is in positive territory, indicating that the bulls have the upper hand. The price may reach the neckline where bears are likely to put up a strong defense. If the bulls overcome this barrier, the BNB/USDT pair could begin a new upward move towards the pattern target of $333.
A decline from the current level is likely to find support at the moving average. A drop below the moving average means the uptrend is losing steam. The pair could then fall to the important support level at $223.
XRP Price Analysis
Bulls attempted to stem the decline of XRP (XRP) from its 50-day SMA ($0.62) on December 11, but were unable to push the price above the 20-day EMA ($0.63).
Selling resumed on December 13, and the price fell below the 50-day SMA. Sellers will try to push the price towards the important support level of $0.56. This level is likely to witness solid buying by the bulls. The 20-day EMA has flattened and the RSI is just below the midpoint, indicating range-limiting action is possible in the near term.
Buyers will be back in the driver’s seat if you raise the price above $0.67. Afterwards, the XRP/USDT pair may rise to the overhead resistance of $0.74.
Solana Price Analysis
Solana (SOL) plummeted from the 20-day EMA ($64.46) on December 11, but the bulls failed to sustain the recovery.
The bears sold around $72 and pulled the price back to the 20-day EMA on December 13th. A negative divergence in RSI suggests that the bullish momentum is waning. Selling may accelerate if the price falls below the 20-day EMA and the SOL/USDT pair may fall towards the 50-day SMA ($53.73).
Alternatively, if the price rises from the current level, it indicates that the bulls continue to actively defend the 20-day EMA. The pair could then rise to $78.
Cardano Price Analysis
Cardano (ADA) is consolidating gains between $0.65 and the 50% Fibonacci retracement level of $0.51, indicating that the dip is being bought.
RSI with rising moving averages and overbought areas indicate that the path of least resistance is upward. The bulls will again try to push the price above $0.65. If that happens, the ADA/USDT pair could begin the next uptrend towards $0.70 and $0.78.
If bears want to stop the advance, they will need to take the price below $0.51 and hit the important support at the 20-day EMA ($0.47).
Dogecoin price analysis
Dogecoin (DOGE) was rejected at the overhead resistance of $0.11 on December 11 and fell to the 20-day EMA ($0.09) on December 13.
A strong bounce in the 20-day EMA means traders continue to buy on dips. The bulls will then make one more attempt to overcome the $0.11 hurdle. If successful, the DOGE/USDT pair could skyrocket to $0.14 and later $0.16.
If the price continues lower and falls below the 20-day EMA, this bullish outlook will be invalidated. If that happens, the pair could fall to its 50-day SMA ($0.08) and then towards $0.07.
Related: Why did Cardano price drop today?
Avalanche Price Analysis
Bulls pushed Avalanche (AVAX) above the overhead resistance of $38 on December 11th and 12th, but failed to sustain it higher.
The result was a decline on December 13th, but the positive sign is that bulls aggressively bought up to $34.36, which is the 38.2% Fibonacci retracement level. Buyers again drove the price above $38. If the bounce continues, the AVAX/USDT pair could retest the highs at $42.89.
Conversely, if the price does not hold above $38, it means that bears continue to see the rally as a selling opportunity. A decline below $34.36 could open a downside target for the 20-day EMA ($28.22).
Polkadot price analysis
Polkadot’s (DOT) rally stalled just below the indirect resistance level of $7.90 on December 9, indicating profit booking by short-term traders.
The price bounced off the 20-day EMA ($6.19) on December 11, but the bulls were unable to overcome the $7.36 barrier. This means the bears are operating at a higher level. Sellers will attempt to push the DOT/USDT pair towards the 20-day EMA. This remains a key level to keep an eye on.
A bounce in the 20-day EMA indicates that sentiment remains positive and traders are buying dips. The bulls will then make one more attempt to overcome the $7.90 hurdle. Conversely, a decline below the 20-day EMA could trigger a decline towards the 50-day SMA ($5.35).
Polygon Price Analysis
Polygon (MATIC)’s rise above $0.89 on December 8th was short-lived as bears pulled the price below the December 11th level.
Buyers attempted to push the price back above $0.89 on December 12th, but the decline held its ground. Sellers are trying to further strengthen their position by pushing the price below the 20-day EMA ($0.83). Doing so would signal the start of a deeper correction towards $0.70.
If the price rises sharply from current levels and rises above $0.89, this negative view will be invalidated in the near term. This would likely represent solid buying at lower levels. The pair could then rise to $0.95 and then to $1.
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.