Bitcoin (BTC) and most of the major altcoins have bounced back from the next support, showing that sentiment is improving and traders are buying on minor drops.
Mexico’s third richest man, billionaire Ricardo Salinas Pliego, said in his Christmas message to stay away from fiat money, calling it “fake money”. Instead, he advises people to “invest in Bitcoin”.
Seasoned trader Peter Brandt warns to beware of high volatility as liquidity drops during the holiday season.
Analysts remain optimistic for 2022. Analyst DecodeJar believe Bitcoin can break through $ 100,000 and hit its target price of $ 190,000.
Can Bitcoin continue to recover in the next few days and pull Altcoins higher? Let’s check out the top 10 cryptocurrency charts to find out.
BTC technical analysis
Bitcoin has successfully held the 20-day EMA ($ 50.033) for the past three days, suggesting that the bulls are buying on the downside. This is likely to attract more buying from the bulls.
BTC / USDT daily chart | Source: TradingView
The 20-day EMA has started rising and the Relative Strength Index (RSI) has moved into positive territory, showing that the bulls have the upper hand.
If buyers push the price above the 38.2% fib retracement level of $ 52.314, the prospect of a rally to the overhead resistance at $ 60,000 increases. The bears will likely defend this level aggressively.
This bullish view will be invalidated if price deviates from current levels or overhead resistance and falls below the moving averages. This can pull the BTC / USDT pair to the strong support at $ 45.456.
Technical analysis of the ETH
Ether (ETH) broke out and closed above the 20-day EMA ($ 4,065) on December 23, but the bulls were unable to extend that advantage. This shows that the bears have not given up and are selling in the rallies.
ETH / USDT Daily Chart | Source: TradingView
The flat 20-day EMA and the RSI near the middle point to a balance between supply and demand. Upward momentum may pick up if the bulls push and hold the price above the USD 4,200 resistance. This could pave the way for a rally to $ 4,488 followed by a retest of the all-time high at $ 4,868.
Conversely, if the price turns down from current levels and drops below $ 3,893.23, the bears will have the upper hand. You can then pull the ETH / USDT pair to $ 3,643.73 and below the 200-day SMA ($ 3,339).
BNB. Technical analysis
After trading near the 20-day EMA (USD 549) for the past three days, the Binance Coin (BNB) climbed above the resistance in December.
BNB / USDT daily chart | Source: TradingView
The 20-day EMA is flat and the RSI is just above the middle, suggesting an equilibrium between bulls and bears. If the price holds above the 20-day EMA, it shows that the bulls have overwhelmed the bears.
After that, the BNB / USDT pair can soar to $ 575 and above it to $ 617. Alternatively, if the price deviates from current levels, the bears will attempt to pull the pair to $ 500. This is important support that the bulls need to be protected because if it breaks the decline can extend as far as the 200-day SMA ($ 442).
SOL. technical analysis
Solana (SOL) broke out and closed above the 20-day EMA (USD 187) on December 23, suggesting the correction may be over. The bears managed to push prices back below the 20-day EMA on December 24, but the bulls did not falter.
Daily SOL / USDT chart | Source: TradingView
This could have attracted additional purchasing power from retailers. The SOL / USDT pair can now climb to the resistance level of the falling wedge where the bears are likely to create strong resistance.
When price turns down from the resistance line but bounces off the 20-day EMA, it shows that the bulls are buying on any slight decline. This increases the likelihood of a break above the wedge and opens the door to a $ 259.90 retest.
Conversely, if the price turns down and breaks below the 20-day EMA, the pair can drop to $ 167.88. A break below this support could push the pair below the 200-day SMA ($ 125).
Technical analysis of the ADA
The bulls have successfully defended the 20-day EMA ($ 1.39) for the past three days. This shows that sentiment has turned positive and traders are buying on the downside. Cardano (ADA) continued its recovery on December 27th.
Daily ADA / USDT Chart | Source: TradingView
The RSI has risen above 58 and the 20-day EMA has started to emerge, showing that the bulls are trying to return. The ADA / USDT pair can rebound as low as $ 1.76 and then hit the overhead resistance at $ 1.87.
This bullish view will be void if price drops from current levels and falls below the 20-day EMA. Such a move would show that the bears are selling in the rallies. They will then attempt to pull the pair below $ 1.18. If successful, the pair can drop to $ 1.
Technical XRP analysis
Ripple (XRP) turned off the psychological resistance at $ 1 on December 24th, indicating that the bears are active at higher levels. The sellers pushed the price down to the 20-day EMA ($ 0.90), but on the small positive side, the bulls have held this level for the past three days.
XRP / USDT daily chart | Source: TradingView
The price is currently stuck between the moving averages. If buyers push the price above the 200-day SMA ($ 0.94), the XRP / USDT pair can rise to $ 1.
Conversely, if the price breaks and holds below the 20-day EMA, the pair can drop to $ 0.85. If this level is also broken, the decline may reach the critical support at $ 0.75. A strong rebound from this level could hold the pair in a range between $ 0.75 and $ 1 for a few more days.
Technical analysis by LUNA
The bulls have pushed Terra (LUNA) continuously above the $ 100 resistance for the past three days but have not been able to hold the higher levels. This shows that the bears continue to aggressively defend this level.
Daily LUNA / USDT chart | Source: TradingView
The LUNA / USDT pair can now correct to the 38.2% fib retracement level at $ 83.83 and then to the 50% fib retracement level at $ 77.72. This zone should act as a strong support.
If the price rebounds from this zone, it shows that the trend is still up and traders are still actively buying the dip. The bulls will then try again to push the price above the all-time high of $ 103.60.
If they do, the pair can rebound to $ 124.65 and then to $ 150. This positive view will be invalidated if price goes down below the $ 61.8 fib retracement level of $ 71.61.
Technical analysis by AVAX
Avalanche (AVAX) bounced off the 20-day EMA (USD 109) again on December 26, indicating that the bulls are actively buying the dip. The bullish 20-day EMA and RSI above 57 show that the bulls have the upper hand.
AVAX / USDT daily chart | Source: TradingView
If the price holds above the 20-day EMA, the bulls will seek the overhead resistance area between the 61.8% fib retracement level at $ 119.69 and the 78.6% retracement at 131.70 to overcome $. If this succeeds, the AVAX / USDT pair can rebound to an all-time high of $ 147.
Conversely, if the price drops down from current levels or the overhead resistance area and falls below the 20-day EMA, it shows that traders are making gains at higher levels. After that, the pair can drop to $ 98 where buyers can attempt to halt the decline.
Technical DOT analysis
The bulls successfully defended the 20-day EMA ($ 28.91) on December 24th and 25th, showing that sentiment has turned positive and traders are buying on the downside. Increased buying pushed Polkadot (DOT) above the USD 31.49 resistance in December.
DOT / USDT daily chart | Source: TradingView
The 20-day EMA has started rising and the RSI has jumped into positive territory, showing that the bulls have the upper hand.
If buyers hold the price above $ 31.49, the upside momentum could be stronger and the DOT / USDT pair could start a fresh move higher. The initial upside target is $ 39.35 and when that level is hit the next stop may be $ 43.56.
Contrary to this assumption, if the price goes down and falls below the moving averages, the pair may fall into the strong support area at $ 25- $ 22.66.
DOGE technical analysis
Dogecoin (DOGE) has traded between the 20-day EMA ($ 0.18) and the resistance of $ 0.19 for the past three days. This shows that both the bulls and the bears are playing it safe and not betting big.
Daily DOGE / USDT Chart | Source: TradingView
A break and a close above $ 0.19 will signal that the bulls have absorbed the supply. This can help the price rebound to $ 0.22 and if hit that level the DOGE / USDT pair may hit the 200-day SMA ($ 0.23).
The bulls need to cross this barrier to signal the beginning of a sustained upward move. If price goes down and breaks below the 20-day EMA, it indicates an advantage for the bears. Thereafter, the pair may slide to the strong support at $ 0.15.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page
Contents
