Bitcoin (BTC) and most of the major altcoins are trying to bounce back from their respective support levels, showing that buyers continue to pile in the decline.
Data from Coinglass shows that 9,925 bitcoins left Coinbase Pro on December 30th, a sign that institutions are still actively buying the dip. This is in stark contrast to the large inflows seen at Binance and OKEx. Some analysts believe institutional buying could pick up in January.
Analyst Alex Kruger expected Bitcoin rally in early January based on fund flow. He also stressed that January brought positive results for Bitcoin from 2018 to 2021, with gains between 7% and 36%.
While investors debated the next direction the crypto market would take, MicroStrategy has continued to amass Bitcoin while the price is falling. The company purchased 1,914 bitcoins between December 9 and December 29, according to a filing with the US Securities and Exchange Commission. The most recent purchase brought the company’s holdings to 124,391 bitcoins.
Can Bitcoin lead to a strong recovery in the crypto market in the new year? Let’s take a look at the charts of the top 10 cryptocurrencies to find out.
BTC technical analysis
Bitcoin bounced off the $ 45.456 support and rose above the 200-day SMA ($ 47,826). However, the bulls are likely to face a major test at the 20-day EMA ($ 49,096).
BTC / USDT daily chart | Source: TradingView
When price drops from current levels or the 20-day EMA, it shows that the bears are selling on any small rebound and increase the likelihood of a break below $ 45.456. When this happens, the BTC / USDT pair can fall into the strong support area at $ 42,000 to $ 40,000.
The Relative Strength Index (RSI) is forming a hidden bullish divergence, suggesting that selling pressures may ease.
If the bulls push price above the 20-day EMA, the pair can climb to $ 51.936.33. A break through and close above this resistance can help the price move to the 50% fib retracement level at $ 55,000 and then to the 61.8% fib retracement level at $ 58,686.
Technical analysis of the ETH
Ether (ETH) has bounced back from the strong support area of $ 3,643.73 to $ 3,503.68. The bulls will now attempt to push the price towards the 20-day EMA ($ 3.952) which is an important level to watch out for.
ETH / USDT Daily Chart | Source: TradingView
When the price deviates from the 20-day EMA, it shows that sentiment remains negative and traders are selling on rallies. After that, the bears will make another attempt to bring the price below the support zone.
A break and close below the 200-day SMA ($ 3,365) could indicate the beginning of a deeper correction to the $ 2,800 level. If the price breaks out and stays above $ 4,200, this negative view will be invalid. After that, the ETH / USDT pair can soar to $ 4,488 and higher to $ 4,868.
BNB. Technical analysis
Binance Coin (BNB) is trying to bounce back from strong support at USD 500, while the rebound is likely to sell at the 20-day EMA (USD 540). If the price moves down from this level, it shows that sentiment is still negative and traders are selling on the rebound.
Daily BNB / USDT Chart | Source: TradingView
The 20-day EMA is sloping down and the RSI is in negative territory, showing that the bears are in charge. A break and close below USD 500 can add selling pressure and the BNB / USDT pair can drop to the 200-day SMA (USD 445).
Contrary to this assumption, if the price rises above the 20-day EMA, the bulls will seek to push the pair above $ 575 and if successful the pair may rise to $ 617 and then into the resistance area.
SOL. technical analysis
Solana (SOL) is trying to bounce back from $ 167.88. The relief rally is likely to see strong selling on the 20-day EMA ($ 182). The RSI is in the negative territory and the 20-day EMA is gradually sloping down, showing that the bears have the upper hand.
Daily SOL / USDT chart | Source: TradingView
If the price turns down and breaks below the $ 167.88 support, the SOL / USDT pair may plunge to $ 148.04. The bulls could try to hold this level but if support breaks the pair could begin a bearish move towards the 200-day SMA (128).
This negative view will be invalidated if the bulls push price above the 20-day EMA and overhead resistance at $ 204.75. After that, the pair can climb to the resistance line of the falling wedge pattern. A break and close above this level could pave the way for a retest of the all-time high of $ 259.90.
Technical analysis of the ADA
Cardano (ADA) broke, closing below the 20-day EMA ($ 1.38) on December 29, but buyers haven’t given up yet. They are trying to push the price back above the 20-day EMA.
Daily ADA / USDT Chart | Source: TradingView
If successful, the ADA / USDT pair can climb to the resistance level of the descending channel. The bears will likely defend this level aggressively. If the price deviates from the resistance line, the pair can add a few more days to the channel.
A breakout and close above the channel are the first signs that the trend may change. Conversely, the pair can drop to $ 1.18 if the price drops down from current levels. This is an important level to watch out for because if it breaks the pair can drop to $ 1.
Technical XRP analysis
Ripple (XRP) hovered between $ 0.75 and $ 1. The price rebounded from $ 0.80 on December 30th and now the bulls will try to push the price back above the 20 days EMA ($ 0.88).
XRP / USDT daily chart | Source: TradingView
If so, the XRP / USDT pair can rebound to the 200-day SMA ($ 0.94) and then hit the $ 1 resistance, the bulls will need to push and hold the price above this resistance to to signal the beginning of a sustained recovery.
The 20-day EMA is turning down and the RSI is below 45, showing that the bears have the upper hand. If the price drops off the 20-day EMA, the bears will seek to push the pair below $ 0.75. A closing price below this level could pave the way for a decline to $ 0.60.
Technical analysis by LUNA
Terra (LUNA) bounced off the 20-day EMA (USD 81) on Dec. 30, showing sentiment remains positive and traders are buying on the downside.
Daily LUNA / USDT chart | Source: TradingView
Now the bulls will try to push the price down to the all-time high of $ 103.60. A break and close above this resistance signals the beginning of the next phase of the uptrend, with the first target at $ 135.26 and higher at $ 150.
On the flip side, if the price dips down from $ 93.81 and falls below the 20-day EMA, it shows that traders are closing their positions as the recovery rebounds. After that, the LUNA / USDT pair may plunge to the 61.8% fib retracement level at $ 71.61.
Technical analysis by AVAX
Avalanche (AVAX) bounced off small support at USD 98 on December 30th and the bulls are currently trying to push the price above the 20-day EMA (107).
AVAX / USDT daily chart | Source: TradingView
If successful, the AVAX / USDT pair can rise to the downtrend line where the bears can create strong resistance. A breakout and a close above this level are the first signs that the correction may be over.
The pair can then climb to $ 128 and if the bulls push the price above this resistance it will complete an inverse head and shoulders pattern. First, the pair could retest the all-time high at $ 147 and then try to rebound to the target of the pattern at $ 177.50.
Conversely, if the price turns down from the 20-day EMA and drops below $ 98, the pair can drop to $ 75.50.
Technical DOT analysis
Polkadot (DOT) broke below the 20-day EMA (USD 28) on December 28th and the bears successfully blocked the bulls attempt to push the price back above the moving averages.
DOT / USDT daily chart | Source: TradingView
If the price breaks down from current levels, the bears will seek to push the DOT / USDT pair below the $ 25 to $ 22.66 support area. In that case, sales could gain momentum and the decline could extend to $ 16.81.
Alternatively, if the price rises above the moving averages, buyers will seek to push the price above $ 31.49. If they do, it could open the door to a rally to $ 39.50 and then $ 43.56.
DOGE technical analysis
Dogecoin (DOGE) fell below the 20-day EMA ($ 0.17) on December 28, but the bears failed to challenge the vital support at $ 0.15. This suggests that sales will dry up at lower levels.
Daily DOGE / USDT Chart | Source: TradingView
The bulls are trying to push the price back above the 20-day EMA. If they do that, the DOGE / USDT pair can rebound to overhead resistance at $ 0.19. A break above and close above this level signals the beginning of a new bullish move with the first target being the 200-day SMA ($ 0.23).
Conversely, if the price drops off the 20-day EMA, the bears will seek to push the pair below $ 0.15. This is an important level that the bulls must defend as if it were broken. The pair can drop as low as $ 0.13 and ultimately to psychological support at $ 0.10.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.