This week, the price of bitcoin (btc) saw a shallow pullback, but the intraday rally to the $44,000 level is an indication that the bulls are not rushing to close their positions. Data from the popular HODL Waves metric shows that investors who bought bitcoin between December 2020 and December 2021 have been sitting on their coins.
Investors have not been selling hard because they anticipate higher levels in the future. Asset manager VanEck said in his 2024 crypto predictions that bitcoin would hit a new all-time high, driven by “political developments and regulatory changes following the US presidential election.”
bitcoin's rally in recent days has also attracted investors to select altcoins, such as Ether (eth), Cardano (ADA), and Solana (SOL). Research firm Santiment remains optimistic about bitcoin's prospects. On December 7, he said that if FUD increases, bitcoin could rise to $50,000.
Will bitcoin find buyers at lower levels and resume its charge to $48,000, or will the action shift to altcoins? Let's analyze the charts of the top 10 cryptocurrencies to find out.
bitcoin price analysis
bitcoin fell from $44,500 on December 5, indicating that short-term traders booked profits. Pullbacks are usually shallow in strong uptrends and do not last long because bulls eagerly buy dips.
If the price rises from the current level and surpasses $44,500, it will signal the beginning of the next leg of the journey towards $48,000. Sellers are expected to defend this level with all their might.
If the price turns down from $44,500, the first downside support is at the 38.2% Fibonacci retracement level of $41,862. If this level is broken, the btc/USDT pair may fall to the 20-day exponential moving average ($39,868). Buyers will have to defend this level if they want to keep the bullish momentum intact.
Ether Price Analysis
The bears attempted to push Ether (eth) below the $2,200 breakout level on December 6, but the bulls held firm. This suggests that buyers are attempting to convert $2,200 into support.
The eth/USDT pair completed a bullish ascending triangle pattern as it broke $2,200. This bullish setup has a target of $3,400. However, a direct rise is unlikely. Sellers will try to stop the advance near $2,500 and again at $3,000.
The critical support zone for the downside is between $2,200 and the 20-day EMA ($2,147). If the price falls below this zone, it may trap several aggressive bulls, resulting in a long sell-off. That could start a strong correction towards $1,900.
BNB Price Analysis
BNB (BNB) remains stuck within the range of $223 to $239, indicating a balance between supply and demand.
The bulls have pushed the price above the 20-day EMA ($233) and will try to break the $239 barrier. If they succeed, the BNB/USDT pair is likely to gain momentum and jump towards the upper hurdle of $265. A breakout and close above this level will complete a bullish inverse head and shoulders pattern.
This optimistic view will be invalidated in the short term if the price declines and falls below $223. That could sink the pair to the critical support 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 try to push the price above $0.67.
However, sellers are unlikely to give up easily. They will try to mount strong resistance at $0.67. If the price turns down from the current level, the XRP/USDT pair is likely to find support at the 20-day EMA.
If the bounce from the 20-day EMA breaks the $0.67 barrier, the XRP/USDT pair is likely to reach $0.74. This level can be a difficult obstacle to overcome.
The bears will have to sink and hold the price below the 50-day SMA ($0.61) if they want to regain control.
Solana Price Analysis
Solana appeared on December 7 and surpassed the 52-week high of $68.20. This indicates the resumption of the uptrend.
The rally above $68.20 invalidated the bearish head and shoulders pattern, which is a positive sign. This attracts buying from bulls who may have been sitting on the sidelines and covering shorts by aggressive bears. There is a minor hurdle at $78, but if scaled, the SOL/USDT pair could rise to $100.
If the bears want to get back into the game, they will have to push the price below the 20-day EMA ($60). The next stop down is at $51.
Cardano Price Analysis
Cardano has been on a roll since it closed above the $0.40 resistance on December 4. Buyers pushed the price above $0.46 on December 7 and followed it up with another move higher above $0.52 on December 8.
The next upside level to watch is $0.60, but the overbought level on the RSI suggests that a minor correction or consolidation is possible in the near term. If the bulls do not give up much ground from the current level, the possibility of a rally to $0.70 increases.
On the contrary, if the ADA/USDT pair falls from the current level, it is likely to find support at $0.52 and again at $0.46. A fall below this support will clear the way for a possible decline towards the 20-day EMA ($0.41).
Dogecoin Price Analysis
Dogecoin (DOGE) soared near $0.11 on December 6, but the bulls were unable to sustain the higher levels, as seen from the long wick of the candle.
A small advantage in favor of the bulls is that they have not allowed the price to stay below $0.10. This suggests that every small dip is being bought. The bulls will once again try to catapult the price above the $0.11 resistance. If they manage to do that, the DOGE/USDT pair could skyrocket to $0.14 and then $0.16.
The first sign of weakness will be a drop below the 20-day EMA ($0.09). This will indicate that short-term traders are booking profits. The pair may then fall to $0.07.
Related: The Many Deaths of bitcoin: Has the crypto Market Passed the 'Point of No Return'?
Avalanche Price Analysis
Avalanche (AVAX) has faced resistance near $28, but the bulls have not given ground to the bears. This suggests that the bulls remain in control.
The bulls will try to resume the uptrend and lift the price to the overhead resistance of $31. This level is likely to attract aggressive selling by the bears. Overbought RSI levels also point to a short-term risk of correction or consolidation.
The first support on the downside is at $24.69. If this level is broken, the AVAX/USDT pair may fall to the 20-day EMA ($22.37). Buyers are expected to fiercely protect this level because the next support is much lower at $18.90.
Chain 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, pushing the price above the overhead resistance at $16.60. If buyers hold the breakout, it will signal the resumption of the uptrend. The LINK/USDT pair could jump to $18.30 and later to $19.50.
On the contrary, if the price declines and closes below $16.60, it will suggest that the bears remain active at higher levels. That will improve the prospects of a decline below the 20-day EMA. The pair could then fall to $13.
Polygon price analysis
Polygon (MATIC) has been range-bound between $0.89 and $0.49 for the past few days. The bulls are trying to push the price above the overhead resistance and start a new uptrend.
The 20-day EMA ($0.80) has started to rise and the RSI is near overbought territory, 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 may once again offer strong resistance to the bulls.
If the price drops below $1 but bounces back to $0.89, it will indicate that the bulls are still in control. That could increase the possibility of a rally to $1.20. The bears will take control again if they sink and sustain the price below the 50-day SMA ($0.75).
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
