Bitcoin (BTC) is attempting to rally above the psychological barrier of $50,000, but several prominent technicians believe that BTC may remain range-bound for a few weeks or even months.
“Bitcoin whales are still depositing bitcoin to exchanges,” claims CryptoQuant. This simply indicates that whales will act quickly if the price takes a certain path.
The sharp downturn of the previous several days has caused the Crypto Fear and Greed Index to reach 16, which indicates a mood of “extreme fear.” Some people think that the current fall appears comparable to the March 2020 collapse.
However, CoinCorner’s Danny Scott explained that Bitcoin’s decline was due to gamblers’ liquidation of bets and not sentiment. He stated that the attitude is “still extremely bullish.”
Could Bitcoin stage a strong comeback following the most recent shakeout and help the crypto market recover? Let’s have a look at the charts of the top 10 cryptocurrencies to see if it’s true.
BTC/USDT
Bitcoin briefly fell below the uptrend trendline and psychological support of $50,000, possibly resulting in selling by traders. Bulls purchased the dip aggressively, but they are having difficulties increasing the price above $50,000.
BTC/USDT daily chart. Source: TradingView
Binance has set a breakaway price of $10,800. If the bears are in command and can establish a new low for Bitcoin, there are several factors that indicate this will happen. The fast 20-day exponential moving average (EMA) ($55,551), which is sloping down, and the relative strength index (RSI)
If bulls drive the price above the uptrend line, the pair could climb to the 20-day EMA. This is a crucial level to watch out for because a break and close above it will be the first sign that bears are weakening their grip. The pair might then move up to $61,000’s overhead resistance.
ETH/USDT
On December 4, Ether (ETH) fell beneath the 100-day simple moving average (SMA), which was $3,873 on that date. The bears were unable to keep the price below $3,800 for long, so they retreated. This implies traders are buying on dips.
ETH/USDT daily chart. Source: TradingView
Near $4,250, the recovery effort is facing strong resistance. The bears renewed their efforts to drag the price below the $3,900 support on Dec. 6, but the long tail on the candlestick indicates that bulls are defending the level.
On the other hand, if the price dips below the 20-day EMA, the bears will make one more try to bring it down and keep it there. If they succeed, the pair may plummet to $3,400.
BNB/USDT
Binance Coin (BNB) dropped and closed below its 20-day EMA on December 3. On December 4, the price fell sharply, reaching the 100-day SMA at $496.
BNB/USDT daily chart. Source: TradingView
The buyers fiercely defended the 100-day SMA, which was apparent in the long tail on the day’s candlestick. The return may proceed to the 20-day EMA, where bears are likely to put up a solid fight.
The BNB/USD pair may remain trapped in between the moving averages if the price rises above the overhead resistance. If a break and close are made above the 20-day EMA, there’s a possibility of an advance to $669.30 to $691.80, where the overhead resistance zone is located.
SOL/USDT
On December 3, Solana (SOL) rejected and re-entered the triangle. This might have trapped the aggressive traders who pushed the triangle’s breakout on December 1 and 2.
SOL/USDT daily chart. Source: TradingView
The selling picked up steam after the SOL/USDT pair broke and closed below the 20-day EMA ($209) on Dec. 4. On Dec. 4, the bears dragged the price below the triangle’s support line and the 100-day SMA ($181).
The bulls are currently attempting to drive the price below the 100-day SMA in order to sink it. If they succeed, the pair may fall as low as $120 to $140, which is near strong support.
ADA/USDT
On December 3, Cardano (ADA) was rejected from the 20-day EMA ($1.63), showing that sentiment has remained bearish and traders are selling on rises.
ADA/USDT daily chart. Source: TradingView
On December 4, the selling increased and the ADA/USDT pair fell as low as $1.18. Although bulls bought this downturn, they were unable to maintain the rebound. This suggests that demand diminishes with higher prices.
Bears could sink the price below $1.18, at which point it would likely plummet to strong support at $1, where buyers will defend the level with all their might. The first indication that the bears are slipping away will be a break and close above the 20-day EMA.
XRP/USDT
Ripple (XRP) declined to an intraday low of $0.60 on December 4, 2018, after breaking below the critical support at $0.85 the previous day. Aggressive buying at lower prices helped carry out a powerful recovery, as seen by the long tail on the day’s candle.
XRP/USDT daily chart. Source: TradingView
On December 5, the buyers attempted to push the price above $0.85 but failed. This indicates that the resistance line has been flipped. The bears will now attempt to resume the decline and bring the XRP/USDT pair back down to $0.60.
The RSI has dropped into the oversold territory, indicating that the pair could witness a consolidation or a relief rally in the next few days.
If the price rises above $0.85, the pair may rally to the 20-day EMA ($0.97), where bears will once again be a tough opponent. A break and close above this level would suggest that sellers are losing their grip on the market.
DOT/USDT
On Dec. 5, when the price of Polkadot (DOT) fell below the significant support level at $32.21, it plummeted to the next critical level at $25. Despite this support, the weak bounce indicates a lack of strong buying at greater levels.
DOT/USDT daily chart. Source: TradingView
On December 5, the price fell back to $18.00 and the bears are once again attempting to push the DOT/USDT pair beneath its strong support at $25. If they succeed, the pair may plummet to as low as $22.50 before recovering.
If the price drops below the current level, this indicates that sellers are putting up a resistance. For example, the pair might advance to the 20-day EMA ($36), which is around where it was before.
If the price drops below this level, it indicates that pessimism is still in vogue and traders are dumping on rallies. The bulls will have to push and keep the price above the 20-day EMA in order to signal a shift in direction.
DOGE/USDT
On December 4, Dogecoin (DOGE) fell below the crucial support of $0.15, but the long tail on the candlestick indicates that bulls took this opportunity to buy. The failure of investors to push the price past the overhead resistance at $0.19 suggests a lack of demand at higher levels.
DOGE/USDT daily chart. Source: TradingView
The bears are attempting to drag the price back down to $0.15 on December 6th. The DOGE/USDT pair may fall as low as $0.13 and then bounce back to the psychological barrier at $0.10 if this support is broken.
A base is a further instance of a price retracing at the bottom. If, however, the price bounces off its current level, it indicates that bulls are fiercely defending the $0.15 support. The pair may then climb to the overhead resistance at $0.19 if it breaks and closes above this mark.
LUNA/USDT
On Dec. 4, the LUNAs of Terra were highly volatile, but the robust close on the day demonstrates that bulls prevailed. However, on Dec. 5, the buyers could not sustain their momentum, resulting in profit-booking.
LUNA/USDT daily chart. Source: TradingView
On Dec. 6, the bears tried to push the price back into the ascending channel, but bulls are likely to defend this level with stubbornness. The upsloping 20-day EMA ($55) and RSI in the positive zone support buyers’ advantage.
If the price breaches its previous high, the bulls will attempt to push it above $78.29 and resume the advance. The LUNA/USDT pair might then rise to $90.
If the price breaks below the 20-day EMA, this optimistic perspective will be rendered meaningless. This might allow for a possible fall to the channel’s support line.
AVAX/USDT
On December 4, the bitcoin value fell by more than $1,000 to $6,526. On that day, AVAX fell by more than 30% and hit a critical support level of $81. This dip was bought by the bulls, but the weak rebound suggests lack of demand at higher levels.
AVAX/USDT daily chart. Source: TradingView
On Dec. 6, the bears once again tried to sink and maintain the price below the vital support level at $81 and the 100-day SMA ($73), but the recovery suggests that bulls are buying on dips.
The AVAX/USDT price may rise to the 20-day EMA ($104), at which point the bears will put up a strong resistance. A break and close above the 20-day EMA, as well as the downtrend line, would suggest a shift in trend.
If, on the other hand, the price falls from the current level or the 20-day EMA, it indicates that bears are continuing to sell on rises. The pair might drop to the 100-day SMA as a result of this.
The article shares a price analysis for BTC, ETH, BNB and more! If you have any questions on Crypto Tax Calculator Australia and how we can help people calculate their taxes that they need to pay on their cryptocurrency transactions in Australia, then contact us and we will be more than happy to help!