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Bitcoin (Bitcoin) Rebounded above the psychological price of $50,000, and the S&P 500 index hit a record closing high on December 23, indicating that Panic selling due to omicron variants Is fading, and the long-awaited “Santa Claus Rally” may have begun.
Data from the on-chain analysis company Glassnode shows that about 100,000 bitcoins change from a “liquid” state to a “non-liquid” state every month, which means The coin is being sent to the address “Almost no consumption history.” This shows the accumulation of investors.
CryptoRank’s data shows that investors will not sell their tokens during minor corrections, which is another sign Bitcoin on cryptocurrency exchanges has fallen From 9.5% of the total Bitcoin supply in October 2020 to 6.3% of the total supply in December this year, this is the lowest level in 2021.
Is the current recovery the beginning of a new uptrend, or is it just a rebound from a dead cat that will be sold off? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin/USD
Bitcoin broke through and closed above the 20-day exponential moving average (EMA) ($49,720) on December 23, indicating that sellers may lose control. The flattening 20-day EMA and the relative strength index (RSI) near the midpoint indicate that the short-term trend may change.
The recovery may rise to the 38.2% Fibonacci retracement level of US$52,314, and then to the 50% retracement level of US$55,560. The bears may create strong resistance in this area. If the price falls from this area, the bears will try again to resume the downtrend.
A break and close below the strong support zone of US$45,000 to US$42,000 may open the door to a possible drop to US$30,000. On the other hand, if the buyer pushes the price above $55,560, the BTC/USDT pair may rise to the 61.8% Fibonacci retracement level of $58,686. Breaking and closing above this level will improve the possibility of retesting all-time highs.
Ethereum/USDT
Ether (Ethereum) Broke through and closed above the descending channel and the 20-day moving average ($4,060) on December 23. This is the first sign that the correction may be coming to an end.
If buyers maintain the price above the 20-day moving average, the bullish momentum may rebound, and the ETH/USDT pair may rise to $4,488. This level may once again become a strong resistance, but if the bulls push the price above this level, the currency pair may retest the all-time high of $4,868.
The 20-day moving average is flattening out and the RSI is close to the midpoint, indicating that the bulls are trying to make a comeback.
However, if the price falls and re-enters the channel, it indicates that the current breakout is a bull trap. Then the currency pair may fall to 3,643.73 USD. A break and close below this support level may cause a drop to the 200-day simple moving average (SMA) ($3,316).
BNB/USDT
Binance Coin (Bitcoin) Has risen to the downtrend line, which can become a strong resistance. If the price drops from the current level, it indicates that traders continue to sell rallies.
The bears are now trying to pull the price down to the strong support zone of $500 to $489.20. If the area collapses, the decline may extend to the 200-day moving average ($439), and buyers may step in and provide support.
Contrary to this assumption, if the bulls push and maintain prices above the downtrend line, it indicates that the correction may be over. Buyers will then try to resume the rise, which may face resistance at $575 and then $617.
Sol/USDT
After trading close to the 20-day moving average ($184) in the past few days, Solana (Sol) Broke through and closed above the resistance level on December 23. The 20-day moving average is flattening out, and the RSI is close to the midpoint, indicating that supply and demand are in balance.
If the price stays above the 20-day moving average, this balance will benefit the bulls. Such a move would indicate that the short-term correction phase may be coming to an end. The SOL/USDT currency pair may first rise to US$204.10 and then to US$240.
Conversely, if the price falls and breaks below $168.49, it indicates that the shorts continue to sell rallies. The currency pair may fall to 148.04 US dollars. If this level also breaks, the currency pair may fall to the 200-day moving average ($123).
ADA/USDT
Cardano (have) Jumped above the 20-day moving average ($1.37) on December 23, indicating that buyers are trying to make a comeback. However, the bears are unlikely to give up easily and will try to pull the price back below the 20-day moving average.
If they succeed, it shows that market sentiment is still negative and traders sell on rallies. The ADA/USDT currency pair may fall to the strong support of $1.18. Breaking and closing below this level may cause the currency pair to fall to $1.
Or, if the price rebounds from the 20-day moving average, it indicates that market sentiment has turned bullish and traders are buying on dips. The bulls will then try to push the price to the overhead resistance at $1.87.
Ripple/USDT
Ripple (Ripple) Broke through and closed above the 200-day moving average ($0.94) on December 22, indicating that sellers may be losing control. The bears are currently trying to stop the recovery near the $1 psychological barrier.
If the bulls do not allow the price to fall below the moving average, it indicates that the trader is buying on dips. This will increase the probability of breaking through $1. If this happens, the XRP/USDT currency pair may rise to $1.20 and then reach a strong overhead resistance of $1.41.
Contrary to this assumption, if the price falls below the moving average, it indicates that the trader is selling near the strong overhead resistance. This may keep the currency pair in a wide range between US$0.75 and US$1.
Moon/USDT
Terra’s Luna The token’s fall from $98.20 on December 22 indicates that the bears are defending the psychological resistance level of $100. However, the bulls have other plans when they buy on dips and resume their rally on December 23.
The rising 20-day EMA (74 USD) and the RSI in the overbought zone indicate the buyer’s advantage. If the bulls maintain the price above $100, the LUNA/USDT currency pair may start the next part of the upward trend. The next upside target is US$124.65 and then US$150.
Or, if the price drops from the current level, it indicates that the short position continues to pose a serious challenge to the $100. If the price falls below the 20-day moving average, the selling may intensify. The currency pair may fall to $50.
AVAX / USDT
Avalanche (AVAX) There is resistance in the area between the 61.8% Fibonacci retracement level of $119.69 and the 78.6% retracement level of $131.70, but a smaller positive factor is that the bulls have not given up too much position.
The rising 20-day moving average ($107) and RSI in the positive zone indicate that the path of least resistance is to the upside. If the bulls push the price above US$131.70, the AVAX/USDT currency pair may retest the all-time high of US$147.
Conversely, if the price drops from the current level or above the resistance and breaks below the 20-day moving average, it indicates that demand has dried up at a higher level. Then the currency pair may fall to 98.14 USD. If this level breaks, the next stop may be $75.50.
DOT / USDT
polka dot(point) Rebounded from the strong support zone of $25 to $22.66 on December 20. The bulls pushed the price above the moving average on December 23.
If buyers maintain the price above the moving average, the DOT/USDT currency pair may rise to 31.49 US dollars, and the shorts may form strong resistance here.
If the price falls from this level but rebounds from the moving average, it indicates that market sentiment has changed from selling on rallies to buying on dips. This may open the door for a possible rebound to 39.35 USD.
If the price falls from the current level and breaks below the 20-day moving average ($28.42), this positive view will be invalidated. This may pull the currency pair down to the support zone.
Dogecoin/USDT
Dogecoin (dog) The rebound from the strong support of US$0.15 has risen above the 20-day moving average (US$0.18). This suggests that the bears may be losing control.
Buyers will now try to push the price to the upper resistance level of $0.19. If they succeed, the DOGE/USDT currency pair may rebound to 0.22 USD and then to the 200-day moving average (0.23 USD). The bears may defend this area vigorously.
On the other hand, if the price falls from US$0.19, the currency pair may fall to US$0.15 again and remain range-bound between these two levels for a few days. The bears will have to sink and maintain the price below $0.15 to start the next downtrend.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and transaction involves risks. When making a decision, you should conduct your own research.
Market data by Bitcoin exchange.
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