Bitcoin price reached a 2023 high heading into the weekend. Additionally, many altcoins like AVAX are also following suit. Is the crypto market preparing for a Santa Claus rally? Can Bitcoin stay above $38,000 and pave the way for a rally towards $40,000, or will the bears play spoilsport again? Crypto analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
Bitcoin rallied nearly 9% in November. Plus, his $38,000 proved to be a formidable hurdle. Buyers repeatedly tried to keep the price above $38,000. But the bears held their ground. Historically, December has been a mixed month. Coinglass data shows that over the past five years, Bitcoin has only risen in 2020, but the size of the 46.92% rise is impressive. Bulls will try to repeat at least some of this performance this year. As we enter the new year, many analysts expect Bitcoin to rise. Standard Chartered said in a Nov. 28 research note that the possibility of a spot Bitcoin ETF being approved earlier than expected could push the Bitcoin price to $100,000 before the 24th.
Galaxy Digital CEO Mike Novogratz also spoke optimistically about Bitcoin in a statement to Bloomberg on November 29. He noted that the marketing team of asset managers whose ETFs are approved will try to persuade people to invest in Bitcoin. This could also increase adoption, he noted. Additionally, the Federal Reserve cutting interest rates could act as another trigger that could push Bitcoin’s price closer to its all-time high by this time next year.
BTC, ETH, BNB, XRP and SOL analysis
Bitcoin (BTC) price analysis
Repeated testing of a resistance level tends to weaken it. After several unsuccessful attempts, the bulls pushed the price higher on December 1. This shows that the upward trend has started again. The rally above $37,980 completes the ascending triangle formation. It is possible for BTC to rise up to $40,000 in the next phase. However, this will still act as a formidable resistance.
If it breaks this level, BTC is likely to reach the formation target of $41,160. Rising moving averages and a relative strength index (RSI) above 65 indicate that the bulls are in control. This optimistic view will be invalidated in the near term if the price turns down and breaks below the uptrend line. This situation is likely to invalidate the bullish pattern. This is likely to push the price to the solid support at $34,800. A break below this level would signal that the bears are back in the game.
Ethereum (ETH) price analysis
ETH rebounded from the 20-day EMA ($2,019) on November 30. Thus, it showed that buyers strongly defended the level. The bulls will try to push the price towards the overhead resistance of $2,200. This remains the key level to keep an eye on in the near term.
If buyers bulldoze their way, ETH will complete an ascending triangle formation. The target target of this bullish pattern is $3,400. The 20-day EMA is a significant support on the downside. A break below this level would be the first sign that the bulls are losing control. ETH is likely to decline further towards the 50-day SMA ($1,874).
Binance Coin (BNB) price analysis
BNB has been trading in the narrow range between $223 and $239 for the past few days. This situation shows the uncertainty between bulls and bears.
The falling 20-day EMA ($234) and the RSI in the negative zone show that the bears are in command. Any recovery attempt is likely to face selling at the 20-day EMA. If the price turns lower from this level, the chances of a decline below $223 increase. It is possible that this could start a decline to $203. Instead, if buyers push the price above the 20-day EMA, BNB is likely to rise to $239. A break and close above this level could start a rally towards $265.
Ripple (XRP) price analysis
XRP has been holding on to the 20-day EMA ($0.61) for the past few days. This shows that every small dip is bought. Therefore, this increases the possibility of a break above the 20-day EMA.
If this happens, it will indicate that the advantage is tilted in favor of the bulls. XRP is likely to rise to $0.64 and then to $0.67. This level is likely to act as a minor roadblock. However, if the bulls pull through, it is possible for XRP to reach $0.74. Conversely, if buyers fail to push the price above the 20-day EMA, sellers will turn the level into resistance. XRP is likely to drop to the solid support of $0.56 later.
Solana (SOL) price analysis
The bears sold off the rally to $62 on November 29 and 30. However, they could not keep Solana below $59. This shows that purchases can be made at lower levels.
The rising 20-day EMA ($55.66) and the RSI in the positive zone show that the bulls have the upper hand. This increases the chances of a rally above $62.10. If this happens, it is possible for SOL to reach $68 a pair. Bulls will have to defend this level with all their might. Because a break above this level will pave the way for a rally towards $100. The closest support to watch on the downside is the 20-day EMA. If it breaks this level, it is possible for SOL to drop to $51. The bears will have to push the price below this level to initiate a deeper correction.
ADA, DOGE, TON, LINK and AVAX analysis
Cardano (ADA) price analysis
Cardano is gaining support from the 20-day EMA ($0.37). However, the bulls are having difficulty initiating a strong recovery from this level. This suggests a lack of demand at higher levels.
The price is stuck between the 20-day EMA and the overhead resistance at $0.40. The gradually rising 20-day EMA and RSI above 58 indicate that the bulls have the advantage. If buyers break the overhead resistance at $0.40, the bullish momentum is likely to increase. Thus, it is possible for ADA to bounce to $0.42 and then to $0.46. Conversely, if the price falls below the 20-day EMA, short-term traders will start booking profits. It is possible that ADA will then drop to $0.34, where the bulls will try to stop the decline.
Dogecoin (DOGE) price analysis
Dogecoin has been hovering above $0.08 for the last four days. This shows that the bulls are in no rush to take profits. The rising 20-day EMA ($0.08) and RSI above 62 suggest the bulls remain in command.
Buyers will try to push the price towards the psychological resistance of $0.10. There is a small hurdle of $0.09. However, the bulls are likely to surpass this level. Sellers are expected to make a strong defense between $0.10 and $0.11. The 20-day EMA is an important support to watch out for on the downside. If this level gives way, DOGE is likely to fall to the 50-day SMA ($0.07).
Toncoin (TON) price analysis
TON has been trending above the 20-day EMA ($2.38) for the past few days. However, the upward movement has lost momentum. The 20-day EMA continues to rise gradually. Also, the RSI is close to 55. This shows that the bulls have a slight advantage.
Buyers will try to push the price above $2.59 and complete the ascending triangle formation. This bullish pattern has a target target of $3.58. On the contrary, a break below the uptrend line will invalidate the bullish triangle formation. Failure of the bullish pattern is a bearish sign that could drag TON towards the next major support at $1.89.
Chainlink (LINK) price analysis
LINK price has been stuck between the 20-day EMA ($14.19) and the overhead resistance at $15.40 for the past few days. Meanwhile, the 20-day EMA is sloping upwards. Also, the RSI is in positive territory. This shows that the path of least resistance is to the upside.
If buyers break the $15.40 barrier, it is possible for LINK to rise to $16.60. It is then likely to move towards $18.30. The first sign of weakness would be a breakout and close below the 20-day EMA. It is possible that this could start a decline towards the 61.8% Fibonacci retracement level at $12.83. This level is likely to attract aggressive buying by the bulls.
Avalanche (AVAX) price analysis
Buyers pushed the AVAX price above the $22 resistance on December 1. This indicated strong demand at higher levels.
If AVAX price closes above $22, the possibility of a rise to $24.69 will increase. It is possible for sellers to mount a strong defense at this level. Because, if the AXAX price rises above this, it will open the doors to a potential rally up to $28.50. If the bears want to stop the uptrend, they will need to quickly pull the AVAX price below the 20-day EMA ($19.80). This could trigger stops from a few short-term traders, causing a drop in AVAX price to $18.90.
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