As a seasoned cryptocurrency trader with over a decade of experience under my belt, I have seen bull markets and bear markets come and go, and I can confidently say that the current state of the market is a rollercoaster ride like no other.
Bitcoin (BTC) enthusiasts are attempting to kick off a Santa Claus rally by pushing the price past the significant threshold of $100,000. However, reaching higher prices might prompt sellers to enter the market. As of now, Bitcoin has climbed approximately 2% in December, but it needs to make greater strides to match last year’s 12.18% increase for the same month, according to CoinGlass statistics.
CryptoQuant contributor Joo Hyun Ryu said in a Quicktake blog post that Bitcoin demand has increased from speculative short-term holders (STH) and Korean investors. The share of STH increased by 3% within a week, and the “Kimchi Premium,” the aggregate difference in price between South Korean exchanges and others, reached a local high of 5.12.
However, Bitcoin’s up move is not a given because United States-based spot Bitcoin exchange-traded funds (ETFs) continue to bleed. CoinGlass data shows net outflows of roughly $1.52 billion from the ETFs since Dec. 19.
Instead of focusing on specific support and resistance levels, let’s identify key price points that could influence the movement of Bitcoin and other leading cryptocurrencies by examining their respective charts. Shall we delve into the charts of the top 10 digital currencies to uncover these potential influencing factors?
Bitcoin price analysis
As a researcher observing the cryptocurrency market, I noticed an upward surge in Bitcoin’s price, breaking through the 50-day simple moving average ($94,608) on December 24th. This suggests that the bullish sentiment remains strong, as the buyers are actively defending this level with determination.
Buyers are trying to push the price above the 20-day exponential moving average ($98,387). If they manage to do that, it will suggest that the correction is over. The BTC/USDT pair could rally toward the all-time high of $108,353.
In my analysis as a researcher, I find that a sharp decline in price from the 20-day Exponential Moving Average (EMA) might suggest that bears are still aggressively selling during rallies. If this trend continues, the pair could potentially drop down to $90,000. At this point, I anticipate the buyers may re-enter the market.
Ether price analysis
Ether’s (ETH) relief rally is facing stiff resistance from the bears near the 20-day EMA ($3,584).
If the price stays under the 50-day Simple Moving Average ($3,478), traders who anticipate a decrease (the “bears”) will try to push the ETH/USDT pair down below $3,200. If they manage this, the pair could drop to $3,000 and potentially even $2,850. However, buyers are likely to put up strong resistance in the $2,850 to $3,000 range.
On the positive side, if there’s a breakthrough and a close above the 20-day Exponential Moving Average (EMA), it indicates that the bears might be losing control. The pair could potentially surge towards $4,094, a point where the bears are predicted to put up a firm resistance.
XRP price analysis
In simpler terms, the digital currency XRP (XRP) is currently moving within a symmetrical triangle structure on its price chart. This suggests that both the buyers (bulls) and sellers (bears) are undecided about the next direction of the price trend.
The 20-day Exponential Moving Average (EMA) currently at $2.25 and the Relative Strength Index (RSI) slightly above its midpoint don’t clearly favor either buyers or sellers, suggesting a potential balance in the market. If the price continues to stay above the 20-day EMA, there’s a possibility that the XRP/USDT pair might reach the resistance line of the triangle.
If the cost falls beneath the 20-day Exponential Moving Average (EMA), this might indicate that the bears are selling during every minor recovery, paving the way for a descent towards the triangle’s support level. The upcoming direction of the trend will likely start with a break either above or below the triangle.
Solana price analysis
After hitting the upward trendline, Solana (SOL) has shown signs of recovery, suggesting that the buyers are attempting to initiate a rally aimed at easing the current market pressure.
Based on the current market conditions, it appears that sellers hold an advantage, as suggested by the falling 20-day Exponential Moving Average ($207) and the RSI being in the negative zone. If the price suddenly drops significantly from the 20-day EMA, it becomes more probable that there will be a break below the uptrend line. In such a scenario, the SOL/USDT pair might decrease to around $155.
In simple terms, if the price keeps rising and surpasses its current moving averages, this pessimistic outlook will be disproven quickly. This could potentially lead to an upward trend towards approximately $247 initially, and possibly even reaching $260 in the future.
BNB price analysis
As a researcher, I observed an impressive bounce-back of BNB from the $635 mark on December 23rd. This suggests that the bullish sentiment is holding strong at this particular level, as they appear to be actively defending it.
In simpler terms, the current 20-day moving average (around $689) being relatively flat and the RSI hovering slightly above the midpoint might indicate a potential period of limited price movement, or range trading, for the BNB/USDT pair in the short term. This could mean that the price may fluctuate between approximately $635 and $722 over an extended duration.
If the price exceeds $722, it could indicate the onset of a rise towards $760 and potentially further up to $794. However, if the sellers manage to push and maintain the price below the upward trendline, they might regain control.
Dogecoin price analysis
Dogecoin (DOGE) is attempting to rebound, yet the surge seems to be missing forcefulness. This indicates a possible decrease in demand at lower price points.
In simpler terms, the average price movement shows a bearish trend, and the RSI (Relative Strength Index) is negative, suggesting that sellers have an upper hand. If the current price decreases further and falls below $0.30, the Dogecoin-Tether pair might decrease to approximately $0.27 – a level determined by Fibonacci ratios. Potential buyers are likely to put up strong resistance at the $0.27 to $0.23 range.
In other words, if there’s a pause and the price line crosses above the moving averages, it could indicate that the buyers are trying to regain control. The price might then increase towards $0.43.
Cardano price analysis
Even though Cardano (ADA) is lingering beneath the horizontal line of the head-and-shoulders chart configuration, it’s proving challenging for the bearish forces to drive the value below $0.80.
This implies that the bears are not surrendering, instead they’re taking advantage of the price drops. If buyers aggressively push and keep the price above the 20-day Exponential Moving Average ($0.98), it would indicate that the market has rejected the downtrend. The ADA/USDT pair might then advance towards $1.20.
In other words, if the price falls significantly from the moving averages, it suggests that bears are selling during rallies, making it more probable that the $0.80 support will be retested again. A break below this support might initiate a decline towards the pattern target of $0.50.
Avalanche price analysis
Avalanche (AVAX) seems to be making an effort to bounce back, but this potential rebound might encounter strong opposition near its moving averages.
If the price drops below the moving averages, it indicates a pessimistic outlook. The bears could potentially push the AVAX/USDT pair below its $36 support level. If this happens, the pair might dip towards $30.50.
To avoid potential losses, traders might need to keep the price higher than the 20-day Exponential Moving Average (EMA), currently at $43.26. If successful, the pair could potentially surge towards the resistance area of $51 to $56.
Chainlink price analysis
On December 23rd, Chainlink (LINK) experienced a significant upward surge, surpassing its 20-day Exponential Moving Average ($24.20), suggesting that investors are buying at lower prices.
The smoothed average price line (EMA) over 20 days has become relatively flat, and the Relative Strength Index (RSI) hovers slightly above the midpoint. This suggests that the market forces of supply and demand are roughly equal, implying potential short-term volatility for the LINK/USDT pair. As a result, you might expect the value to oscillate between approximately $27.50 and $20 within the coming days.
If the cost falls beneath $20, it might form a bearish head-and-shoulders configuration, potentially leading to a drop towards $16. On the other hand, if the price rises and closes above $27.50, this bullish movement could push the pair up to encounter the resistance at $31.
Toncoin price analysis
On December 20th, Toncoin (TON) bounced back from its $4.72 support level, suggesting that the bullish forces remain active even at lower price points.
The relief rally has broken above the moving averages, indicating sustained buying by the bulls. The TON/USDT pair could rally to $6.50 and then to $7, where the bears are expected to mount a strong defense.
If the price falls and drops beneath its moving averages, this optimistic outlook could be disproven. At that point, the bears might try one last push to drive the pair down further, potentially breaking through the $4.72 to $4.44 resistance area.
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2024-12-25 23:00