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The trading price of the S&P 500 index is close to historical highs, but Bitcoin (Bitcoin) Has plummeted by about 30% from its all-time high of $69,000. Even after the sharp drop, Bitcoin is still up 63% so far this year, outperforming the S&P 500 Index, which rose by about 30% in 2021.
Gold, which is popular as an inflation hedge, has fallen by about 7% this year.Arcane Research says in its report Bitcoin’s outstanding performance in a high inflation environment It shows that “Bitcoin has proven itself to be an excellent inflation hedging tool.”
Real Vision CEO Raoul Pal said in an interview with Stakeborg Talks’ Vlad that the recent sell-off of Bitcoin may be due to Profit recorded by institutional investors But he believes that the sell-off may be coming to an end.
However, veteran trader Peter Brandt believes Panic selling has not happened yet, This is the bottom of the known signal.
Can Bitcoin continue its decline or rebound strongly above $50,000 in the next few days? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin/USD
Bitcoin broke through the upper resistance level of 51,936.33 on December 27, but the long wick on the candlestick shows that traders are actively selling this increase. Selling continued on December 28, and the price fell below the 20-day exponential moving average (EMA) ($49,558).
The price fell below the 200-day simple moving average (SMA) ($47,755) on December 29, but the long tail on the candlestick indicates that the bulls are trying to stop the decline. If the price rises and stays above the 200-day moving average, the bulls will try again to push the BTC/USDT pair to the upper resistance level of 51,936.33 USD.
On the contrary, if the price stays below the 200-day moving average, the selling may intensify. The 20-day moving average began to fall, and the relative strength index (RSI) was below 42, indicating that the bears are under control. If the support level of $45,456 breaks, the currency pair may fall to a strong support zone of $42,000 to $40,000.
Ethereum/USDT
Ether (Ethereum) Failure to maintain above the 20-day moving average (4,011 USD) may attract short-term traders to sell. The price fell sharply on December 28 and has fallen to close to the strong support level of $3,643.73.
If the price rebounds from the support level, the bulls will try again to push the ETH/USDT pair above the 20-day moving average. A break and close above $4,200 may indicate that the correction phase may be over. The currency pair may first rebound to US$4,488 and then challenge the all-time high of US$4,868.
However, the downward sloping 20-day EMA and negative zone RSI indicate that the path of least resistance is to the downside. If the support level of $3,643.73 breaks, the currency pair may fall to the 200-day moving average ($3,353). This level may be a strong support, but if it breaks, the currency pair may plummet to $2,800.
BNB/USDT
Binance Coin (Bitcoin) Surged above the 20-day moving average ($546) on December 27, but the bulls were unable to maintain a high level. The price turned down on December 28 and broke below the 20-day moving average.
The bears will now try to push the price below the strong support of $500. If they succeed, it may begin to fall to the 200-day moving average ($444), which the bulls may actively defend.
Contrary to this assumption, if the price recovers from the current level or the strong support of $500, it indicates that the bulls continue to buy on dips. A break and close above $575 will indicate that the correction may be over. The currency pair may first rebound to US$617, and then rise to the upper resistance zone of 669.30 to US$691.80.
Sol/USDT
Solana (Sol) The recovery stalled at US$204.75 on December 27, and the price fell below the 20-day moving average (US$185) on December 28. This shows that the bears continue to sell on rallies.
The bears will now try to take advantage of their advantage and pull the price below $167.88. If this support breaks, the SOL/USDT currency pair may fall to US$148.04. The 20-day moving average was flat, but the RSI fell below 44, indicating that the bears are trying to gain the upper hand.
If the price recovers from the current level and rises above US$204.75, this negative perception will become invalid in the short term. This will clear the way for a possible rebound to the descending wedge resistance line. The wedge break will indicate that the bulls are back in the driver’s seat.
ADA/USDT
Cardano (have) After falling back from $1.59 on December 27, the price has fallen to the 20-day moving average ($1.39). If the price rebounds from the current level, the bulls will try to push the price to the resistance line of the descending channel.
The flat 20-day EMA and RSI near the midpoint indicate that supply and demand are in balance. A break and close above the channel will indicate that the downtrend may end. The bulls will then try to push the price towards the strong overhead resistance at $2.47.
On the other hand, if the price stays below the 20-day moving average, it indicates that the shorts continue to sell on rallies. The ADA/USDT currency pair may fall to the strong support area of $1.18. If the support breaks, the currency pair may fall to $1.
Ripple/USDT
The bulls failed to push Ripple (RippleThe return to above the 50-day moving average ($0.94) on December 27th may have attracted short-term traders to sell. This pulled the price below the 20-day moving average ($0.89) and the support of $0.85.
The 20-day EMA has turned lower and the RSI has fallen into the negative zone, indicating that the bears are in a secondary advantage. If the price stays below US$0.85, the XRP/USDT pair may fall to strong support of US$0.74.
Conversely, if the price rises from the current level and breaks the moving average, it indicates that the lower level is attracting strong buying from the bulls. The currency pair may rise to 1 U.S. dollar. Breaking and closing above this level can complete a reverse head and shoulders pattern with a target of $1.25.
Moon/USDT
Terra’s Luna The token dropped from $103.60 on December 27, and the price fell to the 38.2% Fibonacci retracement level of $83.83. The bulls may try to correct in the area between $83.83 and the 20-day moving average ($80).
A strong rebound in this area will indicate that market sentiment is still bullish and traders will not wait for a deep pullback to buy.
The bulls will then try to push the price up to $103.60. A break and close above this resistance level may indicate the resumption of the uptrend. The first target on the upside is $135.26, and then $150.
If the price falls and breaks below the 20-day moving average, this positive view will be rejected in the short term. This may pull the price down to the 61.8% Fibonacci retracement level of $71.61.
related: Fair comparison? Ethereum grows more than Bitcoin in 2021
AVAX / USDT
AvalancheAVAX) Rebounded from the 20-day moving average ($108) on December 26 and fell to $120.96 on December 27. This shows that the shorts continue to sell at higher levels.
On December 28, the AVAX/USDT currency pair fell and broke below the 20-day moving average. If the bears maintain the price below this level, the next stop may be $98. Breaking and closing below this support level may open the door and may fall to $75.50.
Conversely, if the bulls push the price back above the 20-day moving average, the currency pair may rebound to the downtrend line. A break and close above this resistance level will indicate that the correction may have ended. The currency pair may first rise to $130 and then retest the all-time high of $147.
DOT / USDT
The bulls pushed Polkadot (point) Is higher than the upper resistance level of 31.49 USD on December 27, but the long wick on the candlestick indicates selling at a higher level.
A failed breakthrough can be like a bull trap, catching aggressive buyers off guard. This may cause long positions to close out and pull the price below the moving average.
Both moving averages are flat, and the RSI is slightly below the midpoint, indicating that supply and demand are balanced.
If the bulls push the price back above the moving average, the currency pair may rebound to $31.49. Breaking and closing above this level may signal an advantage for buyers. The currency pair may then rebound to 39.35 USD and then rise to 43.56 USD.
On the other hand, a break and close below the USD 25 to USD 22.66 support zone would indicate that the bears are in a dominant position.
Dogecoin/USDT
Dogecoin (dog) Fell back from the upper resistance at $0.19 and fell below the 20-day moving average ($0.18) on December 28. This shows that the bears continue to defend the upper resistance level.
The DOGE/USDT currency pair may now fall to $0.15, which is a key level for bulls’ defense. If the price rebounds from this support level, the currency pair may remain between US$0.15 and US$0.19 in the next few days.
The bulls will have to push the price higher and maintain it above $0.19 to indicate the beginning of a strong rebound.
Conversely, if the bears fall and maintain the price below $0.15, it indicates that the downtrend has resumed. The currency pair may then fall to $0.13, and then to the psychological support level of $0.10.
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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