Bitcoin (BTC) tries to extend its recovery by rising above the psychological mark of $ 50,000, but several well-known analysts believe that BTC could remain area-bound for a couple of weeks or even months.
On-chain analytics firm CryptoQuant said that Bitcoin “Whales still deposit BTC on exchanges. ”This merely suggests that whales are preparing to react in the short term, depending on which course the course is taken.
Daily performance of the cryptocurrency market. Source: Coin360
The sharp correction of the past few days has pulled the Crypto Fear and Greed Index to 16, which is a Feeling of “extreme fear”“Some believe that this fall will look 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. In his opinion, the mood is “still very bullish”.
After most of the reshakeout, could Bitcoin launch a strong rebound and drive crypto markets higher? Let’s check out the top 10 cryptocurrency charts to find out.
BTC / USDT
Bitcoin broke the uptrend line and psychological support at $ 50,000, potentially causing panic selling by traders. Although the bulls aggressively 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 Exponential Moving Average ($ 55,551) and Relative Strength Index (RSI) near the oversold zone show that the bears are in charge. The sellers will try to turn the uptrendline into resistance. If that happens, the bears will try again to lower the BTC / USDT pair into the strong support zone at $ 42,000 to $ 39,600.
Alternatively, if the bulls push price above the uptrendline, the pair could rebound 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. The pair could then move to the overhead resistance at $ 61,000.
ETH / USDT
Ether (ETH) fell below the 100-day simple moving average ($ 3,873) on December 4th, but the bears were unable to hold the lower levels. This suggests that traders accumulate on break-ins.
ETH / USDT daily chart. Source: TradingView
The recovery attempt faces strong resistance near USD 4,250. The bears tried again today to push the price below the USD 3,900 support, but the candle’s long tail suggests 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 could rise to the overhead resistance at $ 4,868. A break and a close above this resistance indicate the resumption of the uptrend.
On the contrary, if the price deviates from the 20-day EMA, the bears will make another attempt to sink and hold the pair below the 100-day SMA. If successful, the pair could drop to $ 3,400.
BNB / USDT
Binance coin (BNB) broke and closed below the 20-day EMA ($ 592) on December 3. This was followed by a sharp sell-off on December 4th, pulling the price towards the 100-day SMA ($ 496).
BNB / USDT daily chart. Source: TradingView
Buyers aggressively defended the 100-day SMA, as shown by the long tail of the day candle. The rebound could reach the 20-day EMA where the bears are likely to build strong resistance.
If price deviates from the overhead resistance, the BNB / USDT pair could get stuck between the moving averages.
A break and close above the 20-day EMA could open the way for an upward move into the overhead resistance zone at $ 669.30 to $ 691.80. A decline below the 100-day SMA will undo this positive assessment. The pair could then fall to $ 435.30.
SOL / USDT
Solana (SOL) refused and rejoined the triangle on December 3. This would have trapped the aggressive bulls who bought the triangle breakout on December 1st and 2nd.
SOL / USDT daily chart. Source: TradingView
The sale gained momentum after the SOL / USDT pair broke and closed below the 20-day EMA ($ 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 that decline and again defended the 100-day SMA on December 5th, they failed to build on the rebound.
The bears took advantage of this opportunity and are currently trying to get below the 100-day SMA. If they do, the pair could fall into the strong support zone at $ 120-140.
ADA / USDT
Cardano (THERE IS) fell from the 20-day EMA ($ 1.63) on December 3rd, suggesting sentiment remains negative and traders sell on rallies.
ADA / USDT daily chart. Source: TradingView
Selling intensified on December 4th and the ADA / USDT pair plummeted to $ 1.18. Although the bulls bought this decline, they were unable to sustain the rebound. This suggests that demand is drying up at higher levels.
If bears push the price below $ 1.18, the pair could crash to strong support at $ 1 where buyers are expected to do their utmost to defend the level. A break and close above the 20-day EMA are the first signs that the bears may lose their footing.
XRP / USDT
XRP broke below strong support at $ 0.85 on December 4th to hit an intraday low of $ 0.60. Aggressive buying at lower levels contributed to a strong rebound, as evidenced by the long tail of the daily candle.
XRP / USDT daily chart. Source: TradingView
Buyers attempted to push the price above $ 0.85 on December 5, but failed. This suggests that the level has turned into resistance. The bears will now try again to resume the downward move, lowering the XRP / USDT pair to $ 0.60.
The RSI has fallen into the oversold territory, suggesting the pair could see some consolidation or a recovery rally over the next several days.
If bulls push the price above $ 0.85, the pair could move to the 20-day EMA ($ 0.97) where bears could be challenging again. A break and close above this level suggests that the sellers may lose control.
DOT / USDT
Speckle (POINT) fell below the strong support at $ 32.21 on Dec 4th and fell to the next critical level at $ 25. While the bulls defended this support, the weak rebound suggests a lack of aggressive buying at higher levels.
DOT / USDT daily chart. Source: TradingView
Price moved lower on December 5th and the bears are trying again to pull the DOT / USDT pair below the strong support at USD 25. If successful, the pair could drop to $ 22.50 and then to $ 20.
On the other hand, if the price recovers from current levels, this indicates that buyers are doing all they can to defend this level. The pair could then move to the 20-day EMA ($ 36).
If the price drops from this level, it suggests that sentiment remains negative and traders are selling on rallies. The bulls need to push and hold price above the 20-day EMA to indicate a possible reversal of the trend.
Related: Grayscale notes that over 25% of US households surveyed currently own Bitcoin
DOGE / USDT
Dogecoin (DOGE) fell below the critical support at $ 0.15 on December 4th, but the bulls bought that drop, as evidenced by the long tail of the candle. Buyers’ failure to push the price up to the overhead resistance at $ 0.19 suggests a lack of demand at higher levels.
DOGE / USDT daily chart. Source: TradingView
The bears are trying to push the price back below $ 0.15 today. If that support is broken, sales could intensify and the DOGE / USDT pair could hit $ 0.13 and then the psychological support at $ 0.10 ) fall.
Conversely, if the price rebounds from current levels, it suggests that the bulls are aggressively defending the USD 0.15 support. The pair could then move to the overhead resistance at $ 0.19. A breakthrough and close above this level and the 20-day EMA (USD 0.20) signal a possible trend reversal.
MOON / USDT
Terra’s LUNA token was very volatile on December 4th, but the strong closing price for the day shows that the bulls were at the forefront. However, the buyers could not keep up with the momentum, so profit bookings were made on December 5th.
LUNA / USDT daily chart. Source: TradingView
The bears are trying to pull the price back into the ascending channel today, but the bulls are likely to be forceful to defend this level. The rising 20-day EMA ($ 55) and the RSI in positive territory indicate buyer benefit.
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. The LUNA / USDT pair could then climb to $ 90.
That positive view will be invalidated if bears pull the price below the 20-day EMA. That could open the doors for a possible decline to the channel’s support line.
AVAX / USDT
Avalanche (AVAX) turned sharply down on December 4th, plunging into strong support at USD 81. The bulls bought this slump, but the weak rebound suggests a lack of demand at higher levels.
AVAX / USDT daily chart. Source: TradingView
The bears attempted again today to pull and hold the price below the strong support at $ 81 and the 100-day SMA ($ 73), but the rebound suggests that bulls will accumulate on dips.
AVAX / USDT could rise to the 20-day EMA ($ 104) where the bears are likely to build strong resistance. A break and close above the 20-day EMA and the downtrend line signal a possible trend reversal.
Conversely, if the price drops from current levels or the 20-day EMA, it suggests that bears will continue to sell in rallies. That could pull the pair towards the 100-day SMA.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.
Market data is provided by HitBTC Exchange.
