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Bitcoin (Bitcoin) Is trying to expand its recovery by rising to the psychological barrier of $50,000, but several popular analysts believe BTC may remain range-bound Weeks or even months.
On-chain analytics company CryptoQuant stated that Bitcoin “The whale is still depositing BTC on the exchange. “This just shows that the whale is responding in a short time according to the path chosen by the price.
The sharp pullback in the past few days has pulled the cryptocurrency fear and greed index to 16, which shows The emotion of “extreme fear”. “Some believe that the current decline looks similar to the March 2020 crash.
However, CoinCorner CEO Dennis Scott stated that Bitcoin’s decline was due to gamblers closing positions, not emotions. According to him, this sentiment is “still very optimistic.”
After the most severe shock, can Bitcoin start a strong recovery and lead the crypto market higher? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin/USD
Bitcoin fell below the upward trend line and the psychological support of $50,000, which may lead to panic selling by traders. Although the bulls are actively buying on dips, they find it difficult to push the price above $50,000.
The downward sloping 20-day exponential moving average ($55,551) and the relative strength index (RSI) near the oversold zone indicate that bears are in a dominant position. Sellers will try to turn the upward trend line into resistance. If this happens, the bears will try again to push the BTC/USDT currency pair down to the strong support area of 42,000 USD to 39,600 USD.
Or, if the bulls push the price above the uptrend line, the currency pair may rebound to the 20-day moving average. This is an important level to pay attention to, because a breakthrough and closing above this level will be the first sign that bears may lose control. The currency pair may then rebound to the upper resistance level of $61,000.
Ethereum/USDT
Ether (Ethereum) Fell below the 100-day simple moving average ($3,873) on December 4, but the bears were unable to maintain a low level. This shows that traders are accumulating on dips.
The recovery attempt faced strong resistance near 4,250 USD. The bears tried again today to pull the price below the $3,900 support level, but the long tail on the candlestick shows that the bulls are defending this level.
If buyers push the price higher and stay above the 20-day moving average ($4,315), the ETH/USDT pair may rise to the upper resistance level of $4,868. A break and close above this resistance level will indicate the resumption of the uptrend.
Conversely, if the price falls from the 20-day moving average, the bears will try again to sink the currency pair and maintain it below the 100-day moving average. If they succeed, the currency pair may fall to $3,400.
BNB/USDT
Binance Coin (Bitcoin) Broke below on December 3 and closed below the 20-day moving average ($592). Then there was a sharp sell-off on December 4, pulling the price to the 100-day moving average ($496).
As can be seen from the long tail of the candlestick of the day, buyers are actively defending the 100-day moving average. The recovery may hit the 20-day moving average, where bears may form strong resistance.
If the price drops from the above resistance, the BNB/USDT currency pair may remain between the moving averages.
Breaking and closing above the 20-day moving average may clear the way for the upward resistance zone of US$669.30 to US$691.80. If it breaks below the 100-day moving average, this positive view will be denied. The currency pair may fall to 435.30 US dollars.
Sol/USDT
Solana (Sol) Fell back and re-entered the triangle on December 3. This may trap the aggressive bulls who bought the triangle breakout on December 1 and 2.
After the SOL/USDT currency pair broke through and closed below the 20-day moving average (209 US dollars), the selling momentum strengthened. On December 4, the bears pulled the price below the triangular support line and the 100-day moving average ($181).
Although the bulls bought on the dips on December 5 and defended the 100-day moving average again, they were unable to build on the recovery.
The bears have seized this opportunity and are currently trying to push the price below the 100-day moving average. If they manage to do this, the currency pair may fall to the strong support zone of $120 to $140.
ADA/USDT
Cardano (Have) The decline from the 20-day moving average ($1.63) on December 3 indicates that market sentiment is still negative and traders are selling on rallies.
The selling intensified on December 4, and the ADA/USDT currency pair plummeted to 1.18 US dollars. Although the bulls bought the decline, they were unable to sustain the recovery. This shows that demand is drying up at a higher level.
If the bears push the price below $1.18, the currency pair may fall to a strong support level of $1, and buyers are expected to do their best to defend this level. A break and close above the 20-day moving average will be the first sign that bears may lose control.
Ripple/USDT
Ripple On December 4, it broke through the strong support of US$0.85 and fell to an intraday low of US$0.60. As can be seen from the long tail of the candlesticks of the day, aggressive buying at lower levels helped to achieve a strong recovery.
Buyers tried to push the price above $0.85 on December 5, but failed. This indicates that the level has turned into resistance. The bears will now try to resume the downtrend again and drop the XRP/USDT currency pair to 0.60 USD.
The RSI has fallen into the oversold zone, indicating that the currency pair may consolidate or rebound in the next few days.
If the bulls push the price above US$0.85, the currency pair may rebound to the 20-day moving average (US$0.97), and the shorts may once again pose a serious challenge. Breaking and closing above this level will indicate that sellers may lose control.
DOT / USDT
polka dot(point) Fell below the strong support of US$32.21 on December 4 and fell to the next key level of US$25. Although the bulls defended this support, the weak rebound indicated a lack of active buying at higher levels.
The price fell back on December 5, and the bears once again tried to pull the DOT/USDT pair below the strong support of $25. If they succeed, the currency pair may fall to 22.50 USD and then to 20 USD.
On the other hand, if the price rebounds from the current level, it indicates that the buyer is fully defending the level. Then the currency pair may rise to the 20-day moving average (36 USD).
If the price drops from this level, it indicates that market sentiment is still negative and traders sell on rallies. The bulls will have to push the price higher and maintain it above the 20-day moving average to indicate that the trend may change.
related: Grayscale found that more than 25% of surveyed U.S. households currently own Bitcoin
Dogecoin/USDT
Dogecoin (dog) It broke the key support level of $0.15 on December 4, but it can be seen from the long tail on the candlestick that the bulls bought the decline. Buyers failed to push the price to the upper resistance level of $0.19, indicating insufficient demand for higher levels.
Today the bears are trying to bring the price back below $0.15. If this support level is broken, the selling may intensify, and the DOGE/USDT pair may fall to $0.13 and then to the psychological support level of $0.10.
Conversely, if the price rebounds from current levels, it indicates that the bulls are actively defending the $0.15 support level. The currency pair may then rise to the upper resistance level of $0.19. A breakout and close at this level and the 20-day moving average ($0.20) will indicate a possible change in the trend.
Moon/USDT
Terra’s LUNA token fluctuated wildly on December 4, but the strong closing of the day indicated that the bulls had the upper hand. However, buyers failed to keep up, leading to a profit settlement on December 5.
Today the bears are trying to pull the price back into the ascending channel, but the bulls may fully defend this level. The upward sloping 20-day EMA (55 USD) and the positive zone RSI indicate that it is beneficial to buyers.
If the price rebounds from the current level, the bulls will try to push the price above the all-time high of $78.29 and resume the upward trend. The LUNA/USDT currency pair may rebound to 90 US dollars.
If the bears pull the price below the 20-day moving average, this positive view will be invalidated. This may open the door to a possible fall to the channel support line.
AVAX / USDT
Avalanche (AVAX) fell sharply on December 4 and fell to a strong support level of $81. The bulls are buying on dips, but the weak rebound indicates a lack of demand at higher levels.
The bears tried again today to lower the price and maintain strong support below the $81 and 100-day moving average ($73), but the rebound shows that the bulls are accumulating on dips.
AVAX/USDT may rise to the 20-day moving average (104 USD), and shorts are expected to form strong resistance. A break and close above the 20-day moving average and downtrend line will indicate that the trend may change.
Conversely, if the price falls from the current level or the 20-day EMA, it indicates that the bears continue to sell rallies. This may pull the currency pair to the 100-day moving average.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and transaction involves risks. When making a decision, you should conduct your own research.
Market data by Bitcoin exchange.
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