Bitcoin (BTC) is attempting to extend its recovery by rising above the psychological mark at $ 50,000, but several popular analysts believe that BTC could remain in range for a few weeks or even months.
On-chain analytics firm ryptoQuant said that Bitcoin “whales are still depositing BTC on exchanges.” This simply indicates that the whales are preparing to react on short notice depending on which path the price chooses to take.
The sharp correction of the last few days has brought the Crypto Fear and Greed Index to 16, indicating a feeling of “extreme fear”. Some believe that the current drop looks like the drop in March 2020.
However, CoinCorner CEO Danny Scott said that Bitcoin’s slide was due to positional liquidation by players and not trust. According to him, the sentiment “remains very optimistic.”
After the biggest restructuring, could Bitcoin start a strong recovery and drive the cryptocurrency markets higher? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin broke below the uptrend line and psychological support at $ 50,000, which may have triggered panic selling by traders. Although the bulls bought the dip aggressively, they find it difficult to carry the price above $ 50,000.
The 20-day descending exponential moving average ($ 55,551) and the Relative Strength Index (RSI) near the oversold zone indicate that the bears are in command. Sellers will try to convert the uptrend line into resistance. If that happens, the bears will again try to sink the BTC / USDT pair to the strong support zone at $ 42,000 to $ 39,600.
Alternatively, if the bulls push the price above the uptrend line, the pair could rally to the 20-day EMA. This is an important level to watch out for because a breakout and close above it will be the first sign that bears may be losing control. Then the pair could climb to the overhead resistance at $ 61,000.
ETH / USDT
Ether (ETH) tumbled below the 100-day simple moving average ($ 3,873) on December 4, but the bears were unable to sustain the lower levels. This suggests that traders are building on dips.
The recovery attempt is facing stiff resistance near $ 4,250. The bears again tried to pull the price below the $ 3,900 support today, but the long tail on the candle 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 breakout and close above this resistance will signal the resumption of the uptrend.
Conversely, if the price turns down from the 20-day EMA, the bears will make one more attempt to sink and hold the pair below the 100-day SMA. If they are successful, the pair could drop to $ 3,400.
BNB / USDT
Binance Coin (BNB) broke out and closed below the 20-day EMA ($ 592) on December 3. This was followed by a strong sell-off on December 4 that pushed the price to the 100-day SMA ($ 496).
Buyers aggressively defended the 100-day SMA as seen from the long tail on the day’s candle. The recovery could hit the 20-day EMA, where the bears are likely to mount strong resistance.
If the price turns down from the overhead resistance, the BNB / USDT pair could remain trapped between the moving averages.
A breakout and close above the 20-day exponential moving average (EMA) could clear the way for a bullish move towards the upper resistance zone of $ 669.30 to $ 691.80. This positive view will be reversed on a dip below the 100-day SMA. The pair could then drop to $ 435.30.
SOL / USDT
Solana (SOL) rejected and re-entered the triangle on December 3. This could have caught the aggressive bulls who bought the triangle breakout on December 1-2.
The selling picked up momentum after the SOL / USDT pair broke down and closed below the 20-day EMA ($ 209). The bears pulled the price below the triangle support line and the 100-day SMA ($ 181) on December 4.
Although the bulls bought this slide and again defended the 100-day SMA on December 5, they were unable to take advantage of the recovery.
The bears took advantage of this opportunity and are currently attempting to sink the price below the 100-day SMA. If they manage to do that, the pair could fall to the strong support zone of $ 120-140.
ADA / USDT
Cardano (ADA) turned down from the 20-day EMA ($ 1.63) on December 3, indicating that sentiment remains negative and traders are selling on rallies.
The selling intensified on December 4 and the ADA / USDT pair fell to $ 1.18. Although the bulls bought this drop, they could not sustain the recovery. This indicates that demand dries up to higher levels.
If the bears sink the price below $ 1.18, the pair could plummet to the strong support at $ 1, where buyers are expected to defend the level with all their might. A breakout and close above the 20-day EMA will be the first sign that bears may be losing control.
XRP / USDT
XRP broke below the strong support at $ 0.85 on December 4 and fell to an intraday low of $ 0.60. Aggressive buying at lower levels helped make a strong rally as seen from the long tail on the day’s candle.
Buyers tried to push the price above $ 0.85 on December 5, but failed. This suggests that the level has turned into resistance. The bears will again attempt to resume the downward move and sink the XRP / USDT pair to $ 0.60.
The RSI has fallen into oversold territory, indicating that the pair could witness a consolidation or relief rally in the coming days.
If the bulls carry the price above $ 0.85, the pair may move up to the 20-day EMA ($ 0.97), where the bears can again pose a stiff challenge. A breakout and close above this level will suggest that sellers may be losing control.
DOT / USDT
Polkadot (DOT) tumbled below strong support at $ 32.21 on December 4 and fell to the next critical level at $ 25. Although the bulls defended this support, the weak bounce suggests a lack of aggressive buying at higher levels.
The price turned down on December 5 and the bears try again to pull the DOT / USDT pair below the strong support of $ 25. If successful, the pair could drop to $ 22.50 and later to $ 20.
On the other hand, if the price recovers from the current level, it will suggest that buyers are defending this level with all their might. The pair could then climb to the 20-day EMA ($ 36).
If the price falls from this level, it will indicate that sentiment is still negative and traders are selling in rallies. The bulls will have to push and hold the price above the 20-day EMA to indicate a possible change in trend.
DOGE / USDT
Dogecoin (DOGE) fell below the critical support at $ 0.15 on December 4, but the bulls bought this decline as seen from the long tail of the candle. The failure of buyers to push the price to the overhead resistance at $ 0.19 indicates a lack of demand at higher levels.
The bears are trying to sink the price below $ 0.15 today. If this support breaks, the selling could intensify and the DOGE / USDT pair could drop to $ 0.13 and then to the psychological support at $ 0.10.
Conversely, if the price rebounds from the current level, it will suggest that the bulls are aggressively defending the support at $ 0.15. The pair could then climb to the overhead resistance at $ 0.19. A breakout and close above this level and the 20-day EMA ($ 0.20) will signal a possible trend reversal.
MOON / USDT
Terra’s LUNA token was hugely volatile on December 4, but the strong close for the day shows that the bulls rose to the top. However, buyers were unable to maintain momentum, resulting in a profit booking on December 5.
The bears are trying to drive the price back into the ascending channel today, but the bulls are likely to defend this level vigorously. The rising 20-day EMA ($ 55) and the RSI in the positive zone indicate an advantage for buyers.
If the price bounces off the current level, the bulls will attempt to push the price above the all-time high at $ 78.29 and resume the uptrend. The LUNA / USDT pair could rise to $ 90.
This positive view will be invalidated if the bears pull the price below the 20-day EMA. That could open the doors for a possible lowering of the channel’s support line.
AVAX / USDT
Avalanche (AVAX) dipped sharply on December 4 and sank to strong support at $ 81. The bulls bought this decline, but the weak rebound indicates a lack of demand at higher levels.
The bears again tried to sink in and hold the price below the strong support at $ 81 and the 100-day SMA ($ 73) today, but the rebound suggests that the bulls are building on declines.
The AVAX / USDT price pair could rise to the 20-day EMA ($ 104) where the bears are expected to mount strong resistance. A breakout and close above the 20-day EMA and the downtrend line will signal a possible trend reversal.
Conversely, if the price turns down from the current level or from the 20-day EMA, it will suggest that the bears continue to sell in rallies. That could lead the pair to the 100-day SMA.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.
Market data is provided by the exchange HitBTC.