December 7th Technical analysis: BTC, ETH, BNB, SOL, ADA, XRP, DOT, DOGE, LUNA, AVAX

Bitcoin (BTC) is trying to extend its recovery by rallying above the psychological $ 50,000 mark, but some prominent analysts believe BTC could remain constrained for a few weeks or even months.

On-chain analysis company CryptoQuant speak that “whales are still sending BTC to exchanges”. This shows that whales are preparing to react to the market in the short term, depending on which path the price takes.

Strong correction in the last few days drawn Cryptocurrency’s Greed and Fear Index fell to 16, suggesting an “extreme fear” sentiment. Some believe the current decline looks similar to the March 2020 crash.

However, CoinCorner CEO Danny Scott said Bitcoin’s decline was due to the liquidation of positions by players rather than sentiment. The general mood is “still very optimistic”.

After the recent shake, can Bitcoin launch a strong rebound and drive the crypto market up? Let’s check out the top 10 cryptocurrency charts to find out.

BTC technical analysis

Bitcoin has fallen below the uptrend line and psychological support at $ 50,000, which could lead to panic selling among traders. Although the bulls have actively bought the dip, they are having a hard time pushing the price above $ 50,000.

BTC / USDT daily chart | Source: TradingView

The downward sloping 20-day EMA ($ 55.551) and Relative Strength Index (RSI) near the oversold zone show the bears are in control. Sellers will try to convert the uptrendline into resistance. If so, the bears will try again to push the BTC / USDT pair into the strong support area at $ 42,000 to $ 39,600.

Alternatively, if the bulls push the price above the uptrendline, the pair can rally to the 20-day EMA. This is an important level to watch out for as a break and close above it could be the first sign that the bears are losing their grip. Thereafter, the pair can rally to the resistance level of $ 61,000.

Technical analysis of the ETH

Ether (ETH) plunged below the 100-day SMA ($ 3,873) on December 4th, but the bears were unable to hold the lower levels. This shows that traders are accumulating on the downside.

ETH / USDT daily chart | Source: TradingView

The recovery attempt faces strong resistance near USD 4,250. The bears tried again to push the price below the $ 3,900 support on December 6, but the real body’s long tail shows that the bulls are defending the level.

If buyers push and hold the price above the 20-day EMA ($ 4,315), the ETH / USDT pair can rise to the resistance level of $ 4,868. A breakout and close above this resistance indicates a continuation of the uptrend.

Conversely, if the price drops from the 20-day EMA, the bears will make another move to move lower and keep the pair below the 100-day SMA. If successful, the pair can drop to $ 3,400.

BNB. Technical analysis

Binance Coin (BNB) broke and closed below the 20-day EMA (USD 592) on December 3. A heavy sell-off followed on December 4th, pushing the price down to the 100-day SMA ($ 496).

Daily BNB / USDT chart | Source: TradingView

Buyers have aggressively defended the 100-day SMA, as shown by the long tail of the intraday bar. The rebound may hit the 20-day EMA where the bears are likely to create stiff resistance.

If price deviates from the overhead resistance, the BNB / USDT pair could be stuck between the moving averages for some time.

A break and a close above the 20-day EMA could open the way for a move into the overhead resistance area at $ 669.30- $ 691.80. A decline below the 100-day SMA will undo this positive assessment. After that, the pair can drop to $ 435.3.

SOL. technical analysis

Solana (SOL) was rejected at higher levels and fell back into the triangle on December 3rd. This may have caught some aggressive bulls buying on a break above the triangle on December 1st and 2nd.

Daily SOL / USDT chart | Source: TradingView

Selling pressures gained some momentum after the SOL / USDT pair broke through and closed below the 20-day EMA (USD 209). The bears dragged the price below the triangle’s support line and the 100-day SMA ($ 181) on December 4th.

Although the bulls bought the dip and again defended the 100-day SMA on December 5th, they could not build on the rebound.

The bears have taken this opportunity and are currently trying to get below the 100-day SMA. If they do, the pair may fall into strong support at $ 120-140.

Technical analysis of the ADA

Cardano (ADA) was rejected by the 20-day EMA ($ 1.63) on December 3rd, showing sentiment remains negative and traders are selling on rallies.

Daily ADA / USDT chart | Source: TradingView

Selling intensified on December 4th, pushing the ADA / USDT pair to $ 1.18. Although the bulls bought the slump, they failed to sustain the rebound. This suggests that demand will dry up at higher levels.

If the bears push the price below $ 1.18, the pair may fall to the strong support at $ 1, where buyers will do their best to defend that level. A break and close above the 20-day EMA are the first signs that the bears may lose their footing.

Technical XRP analysis

Ripple (XRP) broke strong support at $ 0.85 on December 4th and fell to an intraday low of $ 0.60. Active buying at lower levels helped the price rebound strongly, as evidenced by the long tail of the intraday bar.

XRP / USDT daily chart | Source: TradingView

Buyers tried unsuccessfully to push the price above $ 0.85 on December 5th. This shows that this level has turned into resistance. Now the bears will try again to resume the downward move, pushing the XRP / USDT pair to $ 0.60.

The RSI has fallen into the oversold territory, suggesting the pair could see consolidation or rally in the next few days.

If the bulls push the price above $ 0.85, the pair can rebound to the 20-day EMA ($ 0.97) where the bears can again pose a tough challenge. A break and close above this level would mean the sellers lose control.

Technical DOT analysis

Polkadot (DOT) fell below critical support at $ 32.21 on December 4th and fell to the next major level at $ 25. While the bulls defended this support, the rebound suggests a lack of strong buying at higher levels.

DOT / USDT daily chart | Source: TradingView

The price moved lower on December 5th and the bears are again trying to pull the DOT / USDT pair below the strong support at $ 25, and if successful the pair may fall to $ 22.50 and then to $ 20.

If, on the other hand, the price recovers from the current level, this shows that buyers are defending this level with all their might. After that, the pair can rally to the 20-day EMA ($ 36).

If the price moves down from this level, it shows that sentiment is still negative and traders are selling on a rebound. The bulls need to push and hold price above the 20-day EMA to indicate a trend reversal.

DOGE technical analysis

Dogecoin (DOGE) fell below the critical support at $ 0.15 on December 4th, but the bulls bought the decline, as evidenced by the long tail of the candlestick bar. Buyers’ failure to push the price below the $ 0.19 resistance indicates a lack of demand at higher levels.

Daily DOGE / USDT chart | Source: TradingView

The bears are trying to push the price back below $ 0.15 on December 6th. If that support breaks, sales can intensify and the DOGE / USDT pair can fall to $ 0.13 and then psychological support is at $ 0.10.

Conversely, if the price rebounds from current levels, it indicates that the bulls are actively defending the USD 0.15 support. After that, the pair can climb to the $ 0.19 resistance level. A breakthrough and close above this level and the 20-day EMA (USD 0.20) signal a possible trend reversal.

Technical analysis by LUNA

Terra (LUNA) was volatile on December 4th, but the strong closing price that day shows that the bulls are in control. However, the buyers could not hold the momentum and led on May 12th. to profit taking.

Daily LUNA / USDT chart | Source: TradingView

The bears managed to pull the price back into the ascending channel on December 6, but the bulls are likely to aggressively defend that level. The rising 20-day EMA ($ 55) and the RSI in positive territory suggest an advantage for buyers.

If the price recovers from current levels, the bulls will attempt to push the price above the all-time high of $ 78.29 and resume the uptrend. Then the LUNA / USDT pair can rise to $ 90.

That positive view will be invalidated if the bears pull the price below the 20-day EMA. That could open the door for a drop to the channel’s support line.

Technical analysis by AVAX

Avalanche (AVAX) fell sharply on December 4th, plunging to strong support at $ 81. The bulls bought the break, but the weak rally shows a lack of demand at higher levels.

AVAX / USDT daily chart | Source: TradingView

The bears tried again to pull and hold the price below the strong support at $ 81 and the 100-day SMA ($ 73) on December 6, but the subsequent rebound shows that the bulls are consolidating on the downside.

AVAX / USDT can rebound to the 20-day EMA ($ 104) where the bears are expected to create strong resistance. A breakout and close above the 20-day EMA and the downtrend line signal a trend reversal.

Conversely, if the price breaks down from current levels or the 20-day EMA, it shows that as the bears rebound, the bears are continuing to sell and the pair is pulling back towards the 100-day SMA.

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