Bitcoin (BTC) continued to decline well into December, a signal that traders may hedge their profits before the end of the year. The lack of a Christmas rally in the US stock market suggests that risk-averse sentiment is prevalent in some parts of the world due to the uncertainty surrounding the contagion of the Omikron variation.
Even after the Bitcoin price slump, demand from institutional investors remains low and data shows that the largest Bitcoin product for institutions, Grayscale Bitcoin Trust (GBTC), is trading at a discount of more than 20%.
Veteran analyst Peter Brandt to speak This “volume capitalization” usually signals a low point for Bitcoin, and that has yet to happen in the current decline. This could be an indication that BTC is still bottoming out.
Can Bitcoin and most of the major cryptocurrencies continue to fall in the next few days, or will there be a Christmas rally? Let’s check out the top 10 cryptocurrency charts to find out.
The bulls have been defending the 200-day SMA ($ 47,130) for the past few days but have not been able to push the price above the 20-day EMA ($ 49,622). This indicates a lack of demand at higher levels.
BTC / USDT daily chart | Source: TradingView
The bears dragged the price below the 200-day SMA on December 20th, and if the price stays below this key level, sales could pick up pace. The BTC / USDT pair is in danger of falling into the strong support area at $ 42,000 to $ 39,600. The bulls are likely to be aggressive in defending this zone, but the rebound could be challenging in the 200-day SMA.
This negative view will be invalidated if the price rises from current levels and rises above the 20-day EMA. Such a move would suggest that a break below the 200-day SMA could be a bear trap. The pair can then go up to $ 52,000 and then attempt to go up to $ 60,000.
Ether (ETH) has been trading on a descending channel for the past few days. The rebound from the channel’s support line on December 13th failed to help the price climb above the 20-day EMA ($ 4,058), suggesting that the bears are selling on the rebound.
ETH / USDT Daily Chart | Source: TradingView
The falling 20-day EMA and Relative Strength Index (RSI) below 43 suggest that the path of least resistance is on the downside. The ETH / USDT pair can slide as low as $ 3,643.73 and then to the support line of the channel.
A strong rebound from the support line could add a few days to the channel. Then the bulls will take another step to push the price above the channel. If they are successful, it suggests that selling pressures may ease.
Alternatively, if price drops below the channel, the bears may challenge the 200-day SMA ($ 3.288). A break and close below this line could increase selling pressure.
Buyers have successfully defended the 100-day SMA (USD 509) for the past few days, but have failed to push Binance Coin (BNB) above the 20-day EMA (USD 552). This suggests that demand will dry up at higher levels.
Daily BNB / USDT Chart | Source: TradingView
The 20-day EMA is sloping down and the RSI is in negative territory, showing that the bears have the upper hand. If the price breaks through and below the 100-day SMA, the BNB / USDT pair can fall to the 200-day SMA ($ 436).
Contrary to this assumption, if price starts from current levels and breaks above the 20-day EMA, this shows that the bulls have absorbed the supply. Thereafter, the price could rally to $ 617 and above to stiff resistance at $ 669.30.
Solana (SOL) broke off the 20-day EMA (USD 183) on December 19, indicating that the bears are aggressively defending this level. If the price falls below $ 167.88 and holds, a retest of $ 148.04 is possible.
Daily SOL / USDT chart | Source: TradingView
This is an important support to look out for as a break below it could cause the SOL / USDT pair to dip towards the 200-day SMA ($ 120). The 20-day EMA is sloping down and the RSI is below 43, showing that the bears are in control.
This negative view will be invalidated if the price rises from current levels and breaks above the 20-day EMA. Such a move suggests that selling pressures may ease. After that, the pair can climb to $ 200 and climb to $ 240.
Cardano (ADA) has repeatedly bounced off strong support at $ 1.18 for the past few days, but the bulls have yet to push the price above the 20-day EMA ($ 1.35). This indicates a lack of demand at higher levels.
Daily ADA / USDT Chart | Source: TradingView
Now the bears will try to bring the price below $ 1.18 and hold it. If they do, the ADA / USDT pair may fall to critical support at $ 1 and the bulls are likely to aggressively defend this level.
The first sign of strength will be a breakout and close above the 20-day EMA. Such a move would show that demand exceeds supply. The pair may rise to $ 1.47 first and then attempt to recover to rigid resistance at $ 1.87.
Ripple (XRP) has been trading between $ 0.75 and $ 0.85 for the past few days. The bulls pushed the price above $ 0.85 on December 20, but the long wick on the candle shows that the bears will continue to sell during the rebound.
XRP / USDT daily chart | Source: TradingView
The RSI has rebounded sharply from oversold levels, suggesting that the downside momentum may be easing. This suggests that the XRP / USDT pair could hold in the range for a few more days.
A breakout and a close above $ 0.85 will show that the bulls have overwhelmed the bears. This may push the price down to the psychological level of $ 1; alternatively, a breakout and close below $ 0.75 could open the door for a decline to $ 0.60.
Terra (LUNA) rebounded to a new all-time high on December 20th, but the long wick on the intraday candle shows that short-term traders can make gains at higher levels.
Daily LUNA / USDT chart | Source: TradingView
If the price stays below $ 78.29, the bears will attempt to pull the LUNA / USDT pair to the 20-day EMA ($ 64). This is important support to watch as a strong rebound from it would show sentiment remains positive and traders buy on a decline.
The bulls will then attempt to push the price above the $ 78.29 to $ 81.87 zone. If so, the pair could rally towards the psychological level at $ 100.
Conversely, if the bears pull price below the 20-day EMA, it indicates that traders are leaving their positions. After that, the pair can drop to $ 50.
Avalanche (AVAX) bounced off strong support area at $ 75.50 on Dec. 14 and broke the downtrend line on Dec. 15. This shows that the bulls are trying to resume the uptrend.
AVAX / USDT daily chart | Source: TradingView
However, the upward move was stopped at the 61.8% fib retracement level at $ 119.69, showing that the bears are selling on the rebound. The AVAX / USDT pair has hit critical support at the 20-day EMA ($ 99).
When the price recovers from current levels, buyers will try again to resume the upward momentum. A break and a close above $ 119.69 could pave the way for a rally to $ 131.70 and then to an all-time high of $ 147.
Conversely, if price breaks below the 20-day EMA and holds, the pair may fall to the strong support at $ 75.50.
Polkadot (DOT) has been trading below the 200-day SMA ($ 28.82) for the past few days. This shows that the bears are in command. Sellers are currently attempting to lower the price below the strong $ 25-22.66 support area.
DOT / USDT daily chart | Source: TradingView
If they do, the DOT / USDT pair can extend the decline toward the nearest support at $ 16.81. The longer the price stays below the 200-day SMA, the more likely it is to continue the downtrend.
Contrary to this assumption, if price rebounds from the current zone, the bulls will make another move to push the pair above the 200-day SMA. If they succeed, it shows that the bears are losing their hold. After that, the pair can climb to the $ 39.35 level.
Dogecoin (DOGE) bounced off strong support at $ 0.15 on December 14, rising above the 20-day EMA ($ 0.18). However, the long wick on the bar shows that traders have sold at higher levels.
Daily DOGE / USDT Chart | Source: TradingView
The bears pulled the price back below the 20-day EMA on December 15. This may have trapped some aggressive bulls who were subsequently forced to liquidate their positions. The price fell again to the strong support at $ 0.15.
A break and close below this level could pull the price to the December 4th low of $ 0.13. If this support is broken, the DOGE / USDT pair may plunge to the USD 0.10 psychological level. Conversely, if price rebounds from current levels, the bulls will try again to break the overhead barrier at the 20-day EMA and $ 0.19.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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