This week, Bitcoin (BTC) price experienced a slight decline, but the intraday increase to the $44,000 level is an indication that bulls are in no hurry to close their positions. Data from the popular HODL Waves metric shows that investors who bought Bitcoin between December 2020 and December 2021 were left sitting on their coins.
Investors have not sold the strength because they expect higher levels in the future. Asset manager VanEck said in its 2024 crypto predictions that Bitcoin will hit a new all-time high, buoyed by the “political events and regulatory changes following a US presidential election.”
Daily cryptocurrency market performance. Source: Coin360
The Bitcoin rally over the past few days has also made investors pick altcoins such as Ether (ETH), Cardano (ADA), and Solana (SOL). Research firm Santiment remains positive about Bitcoin’s prospects. On December 7, it was said that Bitcoin could rise to $50,000 if FUD increased.
Will Bitcoin find buyers at lower levels and continue its rise to $48,000, or will the action shift to altcoins? To find out, let's analyze the charts of the top 10 cryptocurrencies.
Bitcoin price analysis
Bitcoin price fell from $44,500 on December 5, suggesting that short-term traders are booking profits. Pullbacks during strong uptrends are typically shallow and do not last long as bulls eagerly buy the dips.
BTC/USDT daily chart. Source: TradingView
If the price rises from the current level and breaks above $44,500, it will signal the start of the next leg of the journey towards $48,000. Sellers are expected to defend this level with all their might.
If the price moves lower from $44,500, the first downside support lies at the 38.2% Fibonacci retracement level at $41,862. If this level is broken, the BTC/USDT pair could crash to the 20-day exponential moving average ($39,868). Buyers will need to defend this level if they want to maintain bullish momentum.
Ether price analysis
The bears attempted to pull Ether (ETH) below the breakout level of $2,200 on December 6, but the bulls held their ground. This suggests that buyers are trying to convert $2,200 into support.
ETH/USDT daily chart. Source: TradingView
The ETH/USDT pair completed a bullish ascending triangle pattern as it broke above $2,200. This bullish setup has a target of $3,400. However, it is unlikely that it will go straight up a notch. Sellers will try to stop the rise at around $2,500 and again at $3,000.
The critical support zone for the downward move is between $2,200 and the 20-day EMA ($2,147). If the price falls below this zone, it could trap several aggressive bulls, resulting in long liquidation. This could trigger a strong correction towards $1,900.
BNB price analysis
BNB (BNB) is stuck in the $223-$239 range, indicating a balance between supply and demand.
BNB/USDT daily chart. Source: TradingView
The bulls have pushed the price above the 20-day EMA ($233) and will attempt to clear the barrier at $239. If they succeed, the BNB/USDT pair is likely to gain momentum and jump towards the upper hurdle at $265. A break and close above this level completes a bullish inverse head and shoulders pattern.
This bullish view will be invalidated in the near term if the price declines and falls below $223. This could drop the pair to the critical support at $203.
XRP price analysis
XRP (XRP) rebounded from the 20-day EMA ($0.62) on December 6, suggesting buying at lower levels. Next, bulls will attempt to push the price above $0.67.
XRP/USDT daily chart. Source: TradingView
However, sellers are unlikely to give up anytime soon. They will try to build strong resistance at $0.67. If the price declines from current levels, the XRP/USDT pair is likely to find support at the 20-day EMA.
If the rebound from the 20-day EMA rises above the barrier at $0.67, the XRP/USDT pair is likely to reach $0.74. This level could prove to be a difficult hurdle to overcome.
The bears need to lower the price and keep it below the 50-day SMA ($0.61) if they want to regain control.
Solana price analysis
Solana turned higher on December 7 and broke the 52-week high of $68.20. This indicates the resumption of the uptrend.
SOL/USDT daily chart. Source: TradingView
The rise above $68.20 invalidated the bearish H&S pattern, which is a positive sign. This attracts buying from the bulls who may have been standing on the sidelines and short covering by the aggressive bears. There is a small hurdle at $78, but if this is overcome, the SOL/USDT pair could rise to $100.
If the bears want to get back into play, they will have to push the price below the 20-day EMA ($60). The next stop down is $51.
Cardano price analysis
Cardano has been on an upswing since closing above the $0.40 resistance level on December 4th. Buyers pushed the price above $0.46 on December 7th, after which it rose above $0.52 again on December 8th.
ADA/USDT daily chart. Source: TradingView
The next level to watch on the upside is $0.60, but the overbought level on the RSI suggests that a minor correction or consolidation is possible in the near term. If the bulls do not give up much from the current level, the possibility of a rebound to $0.70 increases.
On the other hand, if the ADA/USDT pair turns lower from current levels, it is likely to find support at $0.52 and again at $0.46. A break below this support will pave the way for a possible decline to the 20-day EMA ($0.41).
Dogecoin price analysis
Dogecoin (DOGE) shot near $0.11 on December 6, but bulls were unable to sustain the higher levels, as shown by the long wick on the candle.
DOGE/USDT daily chart. Source: TradingView
A small advantage for the bulls is that they have not allowed the price to stay below $0.10. This suggests that every decline, no matter how small, is being bought up. The bulls will once again attempt to catapult the price above the $0.11 resistance. If they succeed, the DOGE/USDT pair could rise to $0.14 and later to $0.16.
The first sign of weakness will be a break below the 20-day EMA ($0.09). This suggests that short-term traders are booking profits. The pair could then fall to $0.07.
Related: The many deaths in Bitcoin: Has the crypto market passed the “point of no return”?
Avalanche price analysis
Avalanche (AVAX) is facing resistance near the $28 level, but the bulls have not given in to the bears. This suggests that bulls remain in control.
AVAX/USDT daily chart. Source: TradingView
The bulls will attempt to continue the uptrend and push the price towards the upper resistance at $31. This level is likely to lead to aggressive selling from bears. The overbought levels on the RSI also indicate the short-term risk of a correction or consolidation.
The first support on the downside is at $24.69. If this level is broken, the AVAX/USDT pair could fall to the 20-day EMA ($22.37). Buyers are expected to vigorously protect this level as the next support lies much lower at $18.90.
Chainlink price analysis
Chainlink (LINK) found support at the 20-day EMA ($15.04) on December 7, indicating that sentiment remains positive and traders are buying on dips.
LINK/USDT daily chart. Source: TradingView
The bulls continued their buying on December 8 and pushed the price above the upper resistance at $16.60. If buyers sustain the breakout, it will indicate the resumption of the uptrend. The LINK/USDT pair could rise to $18.30 and then to $19.50.
On the contrary, if the price declines and closes below $16.60, it will indicate that the bears remain active at higher levels. This increases the prospects of a decline below the 20-day EMA. The pair could then fall to $13.
Polygon price analysis
Polygon (MATIC) has fluctuated between $0.89 and $0.49 over the past few days. The bulls are trying to push the price above the overhead resistance and start a new uptrend.
MATIC/USDT daily chart. Source: TradingView
The 20-day EMA ($0.80) has started rising and the RSI is near overbought territory, suggesting 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 could once again offer strong resistance to the bulls.
If the price falls from $1 but recovers from $0.89, it is a sign that bulls are still in charge. That could increase the possibility of a rally to $1.20. The bears will be in charge again if they decline and keep the price below the 50-day SMA ($0.75).
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.
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