Certain altcoins, except Bitcoin and AVAX, are witnessing profit bookings in rallies. This increases the likelihood of a short-term pullback overall. What are the vital support levels that can stop the decline in Bitcoin and altcoins? Crypto analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
cryptokoin.comAs you’ve been following from , Bitcoin’s rally has been breathing over the past few days. However, its strong rally in 2023 did not go unnoticed. A survey of US financial services companies by crypto firm Paxos showed that 99% of firms are focusing more on crypto projects this year compared to previous years. Analysts are increasingly bullish on Bitcoin and crypto in 2024. Bitwise senior research analyst Ryan Rasmussen made ten predictions for the crypto industry in 2024. He believes Bitcoin will rise to $80,000 in 2024 and “more money will be paid using stablecoins than using Visa.”
Aside from crypto-specific issues, expectations for a Fed rate cut in 2024 are also contributing to the bullish sentiment. Arthur Hayes, former CEO of crypto exchange BitMEX, reiterated his bullish view on crypto. He said fiat money was a “filthy piece of garbage.” He also stated that there is no reason not to be long in crypto.
BTC, ETH, BNB, XRP and SOL analysis
Bitcoin (BTC) price analysis
Bitcoin has been stuck between the downtrend line and the 20-day exponential moving average ($41,221) for the past few days. This compression in price action indicates that a range breakout is possible in the short term.
If the price declines and breaks below the 20-day EMA, it will signal that the bulls are aggressively booking profits. This, in turn, is possible for the BTC pair to drop to the 50-day simple moving average ($38,050). Buyers are expected to defend this level vigorously. Alternatively, if the price bounces off the 20-day EMA and pierces the downtrend line, it will signal that the bulls remain in control. Thus, BTC is likely to rise to its 52-week high of $44,700. Also, if it clears this level, the next stop is likely to be $48,000.
Ethereum (ETH) price analysis
ETH rebounded from the $2,200 support on December 13. However, the relief rally is facing a sell-off near $2,332. This suggests that bears are selling in rallies.
Negative divergence in the RSI also indicates that the bullish momentum is slowing down. Sellers will try to strengthen their positions by pushing the price below $2,200. If they manage to do so, ETH is likely to fall towards the 50-day SMA ($2,049) and then the solid support at $1,900. Conversely, if the price recovers from $2,200 once again, it would indicate that the bulls have turned the level into support. This will increase the possibility of a rise to $3,000.
Binance Coin (BNB) price analysis
The bulls are having difficulty pushing BNB above the $260 overhead resistance. However, the fact that they did not give up ground to the bears is a small positive point.
The 20-day EMA ($240) is gradually rising. Also, the RSI is in positive territory. These also point to advantages for buyers. If the price turns up from the current level or rebounds from the 20-day EMA, the bulls will try to pull the price back to the neckline of the inverse head and shoulders formation. Instead, if the price falls below the moving averages, it will indicate that the bulls are losing control. In this case, it is possible for BNB to decline to the strong support of $223. In this case, BNB will exhibit a range-bound movement between $223 and $260.
Ripple (XRP) price analysis
XRP is witnessing a tough battle between bulls and bears on the moving averages. The 20-day EMA ($0.63) is flat. Also, the RSI is close to the midpoint. These show that there is a balance between supply and demand.
If the price closes below the moving averages, it is possible for XRP to drop as low as $0.56. This is an important level for the bulls to defend. Because a break below could push XRP to $0.46. If the price recovers from the moving averages, XRP will try to rise above $0.67 again. If this happens, it is possible for XRP to rise to $0.74. However, the bears will defend strongly at this level.
Solana (SOL) price analysis
Solana bounced off the 20-day EMA ($66) on December 13. Thus, it broke above the overhead resistance at $78 on December 15. If buyers sustain the breakout, SOL is likely to jump to the $100 psychological level.
Upward sloping moving averages signal an advantage for Solana bulls. However, the negative divergence in the RSI warns that the bullish momentum may weaken. The important support to watch on the downside is the 20-day EMA. A breakout and close below the 20-day EMA could hit a few short-term traders’ stops. It is possible that this will start a pullback towards the 50-day SMA (55d).
ADA, DOGE, AVAX, DOT and MATIC analysis
Cardano (ADA) price analysis
Cardano rebounded from the 50% Fibonacci retracement level at $0.51 on December 11. Thus, on December 13, it rose above $0.65. If buyers hold the price above $0.65, it is possible for ADA to reach $0.70 and then $0.78.
However, the RSI has been in the overbought zone for the last few days. Therefore, there is also a risk of a correction. The first sign of weakness would be a drop below $0.61. This is likely to start a pullback towards the 20-day EMA ($0.51). This remains the key level to watch for ADA. Because a break below this will indicate a trend change in the near term.
Dogecoin (DOGE) price analysis
Dogecoin bounced off the 20-day EMA ($0.09) on December 13. However, the bulls are having a hard time pushing the price above the $0.10 level. The bears will try to sink the price below the 20-day EMA. If they do this, it is possible that sales will intensify. In this case, DOGE is likely to fall to the 50-day SMA ($0.08).
This level can act as a support. However, if it breaks, it is possible for DOGE to drop to $0.07. Both moving averages are upward sloping. Also, the RSI is in positive territory. These show that buyers have the advantage. If the price recovers from the 20-day EMA, it will indicate that the bulls continue to buy dips. This will increase the possibility of DOGE rising to $0.11.
Avalanche (AVAX) price analysis
AVAX price rebounded from the 38.2% Fibonacci retracement level at $34.36 on December 13. This shows that buyers are not waiting for a deeper correction to buy.
The bulls are attempting to push AVAX price above the overhead resistance at $42.89. If they achieve this, it is possible that the AVAX price will start the next leg of its uptrend. The next upside targets for AVAX are $50 followed by $70. The upside risk is that the RSI is trading at overbought levels. This suggests that AVAX price is vulnerable to a correction or consolidation in the short term. If AVAX price turns down from $42.89, it is likely to slide to the 20-day EMA ($30.40).
Polkadot (DOT) price analysis
The bulls attempted to push Polkadot above the overhead resistance at $7.90 again on December 14. But the bears stayed put. Thus, the bulls repeatedly failed to overcome the common obstacles. This likely encouraged short-term traders to book profits.
The bulls bought the dip on December 14. However, it failed to sustain higher levels. Renewed selling on Dec 15 threatens to push DOT lower to the 20-day EMA ($6.43). A strong rebound from the 20-day EMA would indicate sentiment remains positive. The bulls will then try to push DOT back to $7.90. The short-term trend will turn bearish with a break below the 20-day EMA.
Polygon (MATIC) price analysis
Polygon has been trading around $0.89 since December 12. However, the bulls could not push the price above the resistance. This shows that the bears are aggressively defending the level.
The 20-day EMA ($0.84) is an important support to watch out for. If the price recovers from the 20-day EMA, it will indicate that lower levels have been bought. This will increase the chances of a rally above $0.89. If this resistance is overcome, it is possible for MATIC to rise to $1. On the other hand, if the price falls below the 20-day EMA, it will indicate that the bulls have given up in the short term. This could initiate a decline to the 50-day SMA ($0.78) and then to the solid support at $0.70.
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