The Bitcoin market price experienced a notable intraday surge, reaching the $44,000 mark. Analysis of technical charts suggests that altcoins are also strongly inclined to follow suit.
Throughout this week, Bitcoin (BTC) witnessed a minor retracement, but the rapid surge to $44,000 during the day indicates that bullish sentiment remains steadfast. Insights from the widely recognised HODL Waves metrics reveal that individuals who acquired Bitcoin between December 2020 and December 2021 have chosen to retain their holdings.
Rather than liquidating their assets, these investors are holding onto them, likely in anticipation of higher valuations in the future. In their crypto forecasts 2024, investment firm VanEck predicts that Bitcoin will attain a new all-time high, driven by “political events and regulatory changes following a U.S. presidential election.”
Bitcoin’s rally of the past few days has also attracted investors to select altcoins, such as Ethereum (ETH). Cardano (ADA), Solana (SOL). Research firm Sentiment remains positive on the prospects of Bitcoin. It said on Dec. 7th that if FUD increases, Bitcoin could surge to $50,000.
Will Bitcoin find lower-level buyers and resume its charge to $48,000, or will the action shift to altcoins? Let’s analyse the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) price analysis
Bitcoin turned down from $44,500 on Dec. 5th, indicating profit-booking by short-term traders. Pullbacks are usually shallow in solid uptrends and do not last long because the bulls eagerly buy the dips.
If the price turns up from the current level and breaks above $44,500, it will signal the start of the next leg of the journey toward $48,000. Sellers are expected to defend this level with all their might.
If the price turns down from $44,500, the first support on the downside is at the 38.2% Fibonacci retracement level of $41,862. If this level cracks, the BTC/USDT pair may plunge to the 20-day exponential moving average ($39,868). Buyers must defend this level to keep the bullish momentum intact.
Ethereum (ETH) price analysis
The bears tried to pull Ethereum below the breakout level of $2,200 on Dec. 6th, but the bulls held their ground. This suggests that buyers are attempting to flip $2,200 into support.
The ETH/USDT pair completed a bullish ascending triangle pattern when it broke out of $2,200. This bullish setup has a target objective of $3,400. However, it is unlikely to be a straight dash higher. Sellers will try to halt the advance near $2.500 and again at $3,000.
The critical support zone for the downside is between $2,200 and the 20-day EMA ($2,147). If the price skids below this zone, it may trap several aggressive bulls, resulting in long liquidation. That could start a steep correction toward $1,900.
BNB price analysis
BNB remains stuck inside the $223 to $239 range, indicating a balance between supply and demand.
The bulls have pushed the price above the 20-day EMA ($233) and will try to overcome the barrier at $239. The BNB/USDT pair will likely pick up momentum and jump toward the overhead obstacle at $265 if they succeed. A break and close above this level will complete a bullish inverse head-and-shoulders pattern.
This optimistic view will be invalidated soon if the price turns down and plummets below $223. That could sink the pair to the critical support at $203.
XRP price analysis
XRP rebounded off the 20-day EMA ($0.62) on Dec. 6th, signalling that lower levels are being purchased. The bulls will next try to push the price above $0.67.
However, the sellers are unlikely to give up easily. They will try to mount a stiff resistance at $0.67. If the price drops from the current level, the XRP/USDT pair will likely find support at the 20-day EMA.
If the rebound off the 20-day EMA rises above the barrier at $0.67, the XRP/USDT pair is likely to reach $0.74. This level may prove to be a difficult hurdle to cross.
The bears must sink and sustain the price below the 50-day SMA ($0.61) to regain control.
Solana (SOL) price analysis
Solana turned up on Dec. 7th and broke above the 52-week high at $68.20. This indicates the resumption of the uptrend.
The rally above $68.20 invalidated the bearish H&S pattern, which is a positive sign. This attracts buying from the bulls who may have been sitting on the sidelines and short-covering by the aggressive bears. There is a minor hurdle at $78, but the SOL/USDT pair could surge to $100 if scaled.
If the Bears want to return to the game, they must yank the price below the 20-day EMA ($60). The next stop on the downside is at $51.
Cardano (ADA) price analysis
Cardano has been on a roll since closing above the $0.40 resistance on Dec. 4th. Buyers pushed the price above $0.46 on Dec. 7th and followed that up with another move higher above $0.52 on Dec. 8th.
The next level to watch out for on the upside is $0.60, but the overbought level on the RSI suggests a minor correction or consolidation is possible in the near term. If bulls do not give up much ground from the current level, it increases the possibility of a rally to $0.70.
Contrarily, if the ADA/USDT pair turns down from the current level, it will likely find support at $0.52 and again at $0.46. A slide below this support will clear the path for a possible decline to the 20-day EMA ($0.41).
Dogecoin (DOGE) price analysis
Dogecoin skyrocketed to near $0.11 on Dec. 6th, but the bulls could not sustain the higher levels, as seen from the long wick on the candlestick.
A minor advantage in favour of the bulls is that they have not allowed the price to remain below $0.10. This suggests that every little dip is being purchased. The bulls will again try to catapult the price above the $0.11 resistance. If they manage to do that, the DOGE/USDT pair could soar to $0.14 and later to $0.16.
The first sign of weakness will be a drop below the 20-day EMA ($0.09). That will indicate profit-booking by short-term traders. The pair may then drop to $0.07.
Avalanche (AVAX) price analysis
Avalanche has faced resistance near $28, but the bulls have not ceded ground to the bears. This suggests that bulls remain in control.
The bulls will try to resume the uptrend and kick the price to the overhead resistance at $31. This level is likely to attract aggressive selling by the bears. The overbought levels on the RSI also point to a near-term risk of a correction or consolidation.
The first support on the downside is at $24.69. If this level cracks, the AVAX/USDT pair may fall to the 20-day EMA ($22.37). Buyers are expected to fiercely protect this level because the next support is much lower at $18.90.
Chainlink (LINK) price analysis
Chainlink supported the 20-day EMA ($15.04) on Dec. 7th, indicating that the sentiment remains positive and traders are buying on dips.
The bulls continued buying on Dec. 8th, pushing the price above the overhead resistance at $16.60. If buyers sustain the breakout, it will indicate the resumption of the uptrend. The LINK/USDT pair could jump to $18.30 and $19.50.
On the contrary, if the price turns down and closes below $16.60, it will suggest that bears remain active at higher levels. That will enhance the prospects of a drop below the 20-day EMA. The pair could then tumble to $13.
Polygon (MATIC) price analysis
Polygon has been range-bound between $0.89 and $0.49 for several days. The bulls are trying to drive the price above the overhead resistance and start a new uptrend.
The 20-day EMA ($0.80) has started to turn up, and the RSI is near the overbought territory, indicating that the path of least resistance is to the upside. If buyers push the price above $0.89, the MATIC/USDT pair could reach the psychological level of $1. This level may again offer stiff resistance to the bulls.
If the price turns down from $1 but rebounds off $0.89, it will indicate that bulls remain in command. That could increase the possibility of a rally to $1.20. The bears will return to the driver’s seat if they sink and maintain the price below the 50-day SMA ($0.75).
