Bitcoin (BTC), which is trying to extend its recovery by climbing above the psychological mark of $50,000, has many popular analysts believing that BTC could be range-bound for several weeks or even months.
CryptoQuant, an on-chain analytics firm, stated that Bitcoin “whales” are still depositing BTC into exchanges. This simply means that the whales are preparing to react quickly depending on the direction that the price chooses.
Everyday cryptocurrency market performance. Source: Coin360
The Crypto Fear and Greed Index has dropped to 16 due to a sharp correction over the past few days. This indicates that there is a feeling of extreme fear. Some think the current fall may be similar to the March 2020 crash.
But, CoinCorner CEO Danny Scott stated that Bitcoin’s decline was caused by the liquidation positions by gamblers and NOT because of sentiment. He stated that the sentiment is “still very optimistic.”
Could Bitcoin see a strong recovery after the latest shakeout and help propel crypto markets higher? Let’s look at the charts of the top 10 cryptocurrency to see what happens.
Bitcoin fell below the psychological support of $50,000 and the uptrend line, which could have led to panic selling by traders. Bulls bought the dip aggressively but it is difficult for them to push the price higher than $50,000.
Daily chart of BTC/USDT Source: TradingView
The bears have control of the market, as indicated by the downsloping exponential moving average (20-day) ($55.551) and relative strength index (RSI), near the oversold area. Sellers will try to turn the resistance line of the uptrend into support. If this happens, bears will attempt to sink the BTC/USDT pairs to the strong support zone of $42,000 to $39,600.
Alternatively, if bulls push price above the uptrendline, the pair may rally to the 20 day EMA. This level is important to monitor because a break or close above it could be a sign that bears are losing their grip. The overhead resistance of $61,000 could be a rally for the pair.
The Ether (ETH), fell below the SMA ($3,873) for 100 days on Dec. 4, but the bears were unable to sustain lower levels. This indicates that traders are taking advantage of dips.
Daily chart of ETH/USDT Source: TradingView
Near $4,250 is stiff resistance to the recovery effort. Although the bears tried to push the price below $3,900 on Dec. 6, the candlestick’s long tail suggests that the bulls are protecting the level.
The ETH/USDT pair may rise to $4,868 if buyers continue pushing the price higher than the 20-day EMA ($4,315). The resumption or acceleration of the uptrend will be indicated by a break or close above this resistance.
The bears will attempt to keep the pair below 100-day SMA if the price falls below the 20-day EMA. The pair could fall to $3,400 if they succeed.
Binance Coin (BNB), which was trading below the 20-day EMA ($592), broke on Dec. 3. This was followed by a sharp selloff on Dec. 4, which brought the price to the 100 day SMA ($496).
Daily chart BNB/USDT TradingView
The 100-day SMA was aggressively defended by the buyers as seen from the candlestick’s long tail. The bears could mount a strong resistance at the 20-day EMA, where there is a possibility of a recovery.
The BNB/USDT pair may remain between the moving averages if the price drops below the overhead resistance.
Breaking above the 20-day EMA would open the way for a move up to the overhead resistance zone of $669.30 to 691.80. A drop below the 100 day SMA will negate this positive outlook. This could lead to a drop in the pair to $435.30.
Solana (SOL), turned down and entered the triangle again on Dec. This could have trapped aggressive bulls that bought the triangle’s breakout on Dec. 1 or 2.
Daily chart of SOL/USDT Source: TradingView
After the SOL/USDT pairing broke, the selling momentum picked up and the pair closed below the 20 day EMA ($209). The bears pulled down the price below the support level of the triangle, and the 100-day SMA ($181) Dec. 4.
Bulls bought this dip, and they again defended the 100 day SMA Dec. 5, but could not build on the recovery.
The bears took advantage of this opportunity to lower the price below the 100 day SMA. The pair could fall to the $120-$140 support zone if they succeed.
Cardano (ADA), which was down from the 20 day EMA ($1.63) Dec. 3, indicated that sentiment is still negative and traders are selling off rallies.
Daily chart ADA/USDT Source: TradingView
Dec. 4, saw a heightened selling and the ADA/USDT pairing plunged to $1.18. Bulls bought this dip but they couldn’t sustain the recovery. This shows that demand is drying up at higher levels.
The pair could fall to $1.18 if bears lower the price. Buyers are expected to protect the level. The first sign that bears are losing their grip is a break and close above 20-day EMA.
Ripple (XRP), which broke below $0.85 on December 4, fell to an intraday high of $0.60 As seen in the candlestick’s long tail, aggressive buying at lower levels helped to stage a strong recovery.
Daily chart of XRP/USDT Source: TradingView
On Dec. 5, buyers tried to push the price higher than $0.85 but failed. This indicates that the resistance level has been reached. The bears will attempt to resume the down movement and bring the XRP/USDT exchange rate to $0.60.
The RSI fell into the oversold territory. This indicates that the pair may witness a consolidation of a relief rally within the next few days.
Bulls driving the price higher than $0.85 could cause the pair to rally to the 20-day EMA ($0.97), where bears may pose a challenge. If the price breaks or closes above this level, it could indicate that sellers are losing control.
Polkadot dropped below its strong support of $32.21 on December 4, and fell to $25 at the next critical level. Bulls defend this support but the weak rebound indicates a lack aggressive buying at higher levels.
Daily chart of DOT/USDT Source: TradingView
Dec. 5 saw the price drop and bears attempted to lower the DOT/USDT pairs below $25. The pair could fall to $22.50, and then to $20 if they succeed.
However, buyers will defend the current price level if it bounces off its current level. The price could rise to the $20-day EMA ($36).
If the price falls below this level, it will mean that sentiment is still negative and traders are buying rallies. To indicate a change in trend, the bulls must push the price higher than the 20-day EMA.
Grayscale also finds that more than 25% of US households are currently using Bitcoin
Dogecoin (DOGE), fell below $0.15 on December 4, but bulls bought this dip as seen in the candlestick’s long tail. The lack of buyers pushing the price above the $0.19 overhead resistance indicates that there is not enough demand for higher levels.
Daily chart of DOGE/USDT Source: TradingView
The bears want to bring the price down below $0.15 by Dec. 6. This support could be breached and the selling could intensify. The DOGE/USDT pair could fall to $0.13, then to psychological support at $0.10.
If the price bounces off its current level, it will indicate that bulls are aggressively defending the $0.15 support. The overhead resistance of $0.19 could be reached. Trend change could be signalled by a break or close above the level and the 20 day EMA ($0.20).
Terra’s LUNA token was volatile on December 4, but the strong closing of the day proves that bulls won. Profit-booking was achieved on Dec. 5 because the momentum was not maintained by the buyers.
Daily chart of LUNA/USDT Source: TradingView
The bears attempted to drag the price back into ascending channel Dec. 6, but the bulls will likely defend this level with greater force. Buyers have an advantage because of the upwardly moving 20-day EMA ($55), and the RSI in positive territory.
The bulls will try to push the price higher than the $78.29 record and resume the uptrend if the price recovers from the current level. The LUNA/USDT pairing could rally to $90.
If bears push the price below 20-day EMA, this positive view will be invalidated. This could lead to a possible fall to the channel’s support line.
Avalanche (AVAX), plunged to $81 after it dropped sharply Dec. 4. This dip was bought by the bulls, but the weak bounce suggests a lack in demand at higher levels.
Daily chart of AVAX/USDT Source: TradingView
Although the bears tried to keep the price below $81 and the 100 day SMA ($73), Dec. 6, the rebound suggested that bulls are building on dips.
The 20-day EMA ($104), where bears will likely mount a strong resistance, could see the AVAX/USDT rise. Breaking and closing above the 20-day EMA or the downtrend line could signal a change in trend.
If the price drops below the 20-day EMA or current level, that will indicate that bears are continuing to sell rallies. This could push the pair towards the 100-day SMA.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.