Bitcoin (BTC) and alternative cryptocurrencies seek support at lower prices. This suggests market sentiment remains positive, and traders actively buy during price dips.
In the case of Bitcoin, it has not managed to stage a strong recovery following its decline on Dec. 11th. This lack of a significant rebound indicates selling pressure during relief rallies. According to data from Glassnode, on Dec. 11th, short-term holders (STHs), entities holding Bitcoin for 155 days or less, transferred $1.93 billion worth of Bitcoin to exchanges, followed by $2.08 billion on Dec. 12th. The last time a single-day selling volume exceeded the $2 billion mark was in June 2022, underscoring the eagerness of speculators to offload their holdings.
Nevertheless, lower price levels are attracting buyers. Material Indicators, a trading resource, has suggested the presence of “institutional-sized” bids. However, whether this represents an accumulation of Bitcoin for the long term or a short-term trading opportunity remains unclear. Investors are taking advantage of price dips while selling during rallies.
Cointelegraph contributor Marcel Pechman analyzed derivatives data and said that Bitcoin remains on track to hit $50,000 despite the recent correction. He added that chances of “cascading liquidations” were low as the correction seems to have been “primarily driven by the spot market.”
What are the critical support levels on Bitcoin that are likely to hold? Could altcoins also start a relief rally? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) price analysis
Bitcoin has been holding above the 20-day exponential moving average ($40,870), but the bulls have failed to start a strong relief rally. This suggests hesitation to buy at higher levels.
The negative divergence on the relative strength index (RSI) suggests that the positive momentum could slow down. That puts the 20-day EMA at risk of breaking down. If that happens, the BTC/USDT pair could plummet to the 50-day simple moving average ($37,707).
Meanwhile, the bulls are likely to have other plans. They will try to push the price to the overhead resistance at $44,700. This level will witness a tough battle between the bulls and the bears. If the buyers prevail, the pair could soar to $48,000.
Ethereum (ETH) price analysis
Ethereum shallow bounce off the strong support at $2,200 on Dec. 12th suggests a lack of demand at lower levels.
The bears are trying to build upon their advantage by pulling the price below the 20-day EMA ($2,192). If they sustain the lower levels, the selling could accelerate, and the ETH/USDT pair could tumble to the 50-day SMA ($2,029).
Conversely, if the price turns up and rises above $2,250, it will suggest that lower levels continue to attract buyers. The pair will then try to retest the 52-week high at 2,403. A rally above this resistance could start the next leg of the uptrend to $3,000.
BNB price analysis
BNB’s price action has formed an inverse head-and-shoulders pattern, which will complete on a break and close above the neckline near $275.
The 20-day EMA ($238) has started to turn up, and the RSI is in positive territory, indicating that bulls have the upper hand. The price could reach the neckline, where the bears will likely mount a strong defence. If bulls overcome this barrier, the BNB/USDT pair could start a new upmove toward the pattern target of $333.
Any dip from the current level is likely to find support at the moving averages. A break below the moving averages will suggest that the bulls are losing their grip. The pair may then tumble to the vital support at $223.
XRP price analysis
The bulls tried to stall XRP’s pullback at the 50-day SMA ($0.62) on Dec. 11th but could not push the price above the 20-day EMA ($0.63).
The selling resumed on Dec. 13th, and the price fell below the 50-day SMA. Sellers will try tying the price to the critical support at $0.56. This level is likely to witness solid buying by the bulls. The 20-day EMA has flattened out, and the RSI is just below the midpoint, indicating a possible range-bound action in the near term.
Buyers will be back in the driver’s seat after they push the price above $0.67. The XRP/USDT pair could climb to the overhead resistance at $0.74.
Solana (SOL) price analysis
Solana snapped back from the 20-day EMA ($64.46) on Dec. 11th, but the bulls could not sustain the recovery.
The bears sold for nearly $72 and again pulled the price to the 20-day EMA on Dec. 13th. The negative divergence on the RSI suggests the bullish momentum is weakening. If the price plunges below the 20-day EMA, the selling could accelerate, and the SOL/USDT pair may drop to the 50-day SMA ($53.73).
Alternatively, if the price turns up from the current level, it will indicate that the bulls continue to defend the 20-day EMA with vigour. The pair may then rise to $78.
Cardano (ADA) price analysis
Cardano is consolidating its gains between $0.65 and the 50% Fibonacci retracement level of $0.51, indicating that dips are being purchased.
The upsloping moving averages and the RSI in the overbought zone suggest that the path of least resistance is to the upside. The bulls will again try to shove the price above $0.65. If they manage to do that, the ADA/USDT pair could start the next leg of the uptrend toward $0.70 and then $0.78.
Bears must yank the price below $0.51 and the crucial support at the 20-day EMA ($0.47) if they want to prevent the upside.
Dogecoin (DOGE) price analysis
Dogecoin turned down from the overhead resistance of $0.11 on Dec. 11th and dipped to the 20-day EMA ($0.09) on Dec. 13th.
A strong bounce off the 20-day EMA will suggest that traders continue to buy on dips. The bulls will then make one more attempt to overcome the obstacle at $0.11. If they succeed, the DOGE/USDT pair could surge to $0.14 and later to $0.16.
This bullish view will be negated if the price continues lower and breaks below the 20-day EMA. If that happens, the pair could slide to the 50-day SMA ($0.08) and subsequently to $0.07.
Avalanche (AVAX) price analysis
The bulls propelled Avalanche above the overhead resistance of $38 on Dec. 11 and 12 but could not sustain the higher levels.
That resulted in a pullback on Dec. 13th, but a positive sign is that the bulls aggressively purchased the dip to the 38.2% Fibonacci retracement level of $34.36. Buyers have again pushed the price above $38. If the rebound sustains, the AVAX/USDT pair could retest the high at $42.89.
Conversely, if the price fails to remain above $38, it will suggest that bears continue to view the rallies as a selling opportunity. A drop below $34.36 may open the downside target to the 20-day EMA ($28.22).
Polkadot (DOT) price analysis
Polkadot’s rally stalled just below the overhead resistance of $7.90 on Dec. 9th, indicating profit-booking by short-term traders.
The price rebounded off the 20-day EMA ($6.19) on Dec. 11th, but the bulls could not overcome the barrier at $7.36. That suggests bears are active at higher levels. Sellers will attempt to pull the DOT/USDT pair to the 20-day EMA, which remains the fundamental level to watch.
A bounce off the 20-day EMA indicates that the sentiment remains positive, and traders buy on dips. The bulls will then make one more attempt to clear the hurdle at $7.90. On the contrary, a break below the 20-day EMA could sink the pair to the 50-day SMA ($5.35).
Polygon (MATIC) price analysis
Polygon’s rise above $0.89 on Dec. 8 was short-lived as the bears pulled the price back below the level on Dec. 11.
Buyers tried to push the price back above $0.89 on Dec. 12th, but the bears held their ground. Sellers are trying to strengthen their position further by pulling the price below the 20-day EMA ($0.83). If they do that, it will suggest a more profound correction toward $0.70.
This negative view will be invalidated in the short term if the price turns up sharply from the current level and rises above $0.89. That will indicate solid buying at lower levels. The pair may then climb to $0.95 and subsequently to $1.
