Bitcoin and most major altcoins are trading close to general resistance levels. Crypto analyst Rakesh Upadhyay says this also raises the possibility of an upside push. Can altcoins including Bitcoin and DOGE start a rebound? The analyst studies the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
cryptocoin.com As you follow, Bitcoin (BTC) is on its way to close the year with a loss of about 65%. This will be the third negative year for Bitcoin, the other two being 2014 and 2018. By comparison, the S&P 500 performed much better. However, in 2022, it experienced a decrease of close to 20%. Even though cryptocurrency prices have seen deep drops this year, traders continued to pump money into the space. 41% of respondents to an online survey conducted by Blockchain.com say they have purchased crypto this year. Also, 40% plan to buy crypto next year.
Daily cryptocurrency market performance / Source: Coin360However, a sustainable recovery in risky assets can only take place after inflation shows signs of cooling off. This will increase the expectation of the US Federal Reserve to return from aggressive monetary tightening to an expansionary policy. Meanwhile, volumes are likely to remain weak during the holiday season. Therefore, markets are likely to remain volatile in the short term. Now it’s time for analysis…
BTC, ETH, BNB, XRP and DOGE analysis
Bitcoin (BTC)
BTC is struggling to hold on to the 20-day exponential moving average ($16,955). The bears tried to lower the price on December 22. However, the long tail on the candlestick shows strong buying on the declines.
The bulls will try to break through the general hurdle in the moving averages. If successful, it is possible for BTC to gain momentum and rally to the strong overhead resistance at $18,388. This is an important level to watch. Because, a break and close above it can attract large purchases. BTC is likely to rally to $21,500 later. If the bulls fail to push the price above the moving averages, higher levels indicate a lack of demand. The bears will try to seize this opportunity and push BTC below $16,256. If they do, a drop to the $15,476 support is possible for BTC.
Ethereum (ETH)
ETH bounced off $1,150 and faced strong resistance at the 20-day EMA ($1,230) for the past two days. Sellers tried to push the price down on December 22. However, the long tail on the candlestick indicates aggressive buying at the lower levels.
The 20-day EMA is horizontal and the RSI is just below the midpoint, indicating an equilibrium between buyers and sellers. A break above the 50-day SMA ($1,259) is possible to tip the short-term advantage in favor of the bulls. ETH is likely to rally to $1,352 later. Sellers will have to push the price below the $1,150 immediate support to gain the upper hand. Such a move completes a bearish head-and-shoulder pattern in the near-term. ETH is likely to drop to the $1,075 target first and then the target target of $948.
Binance Coin (BNB)
BNB has been consolidating near the $250 breakout level for the past few days. This indicates that the bears are maintaining this level. But a positive sign is that the bulls haven’t left much ground.
If the price rises above $255, it could trap several aggressive bears who might rush to close their short positions. It is possible that this causes a short squeeze that could push the price towards the 50-day SMA ($283) and then $300. Instead, if the price drops from the current level and dips below $236, it will show that the bears are in control. Sellers will then try to push the price below $220. Thus, it will extend the decline to the psychological support at $200.
Ripple (XRP)
XRP is trying to start a recovery. However, it is likely to face selling near the $0.37 breakout level. Both moving averages are trending downwards and the RSI is below 40. This shows that the bears have the upper hand.
If the price breaks from the 20-day EMA, the bears will try to push XRP below $0.33. If they do, XRP is likely to drop to the critical support of $0.30, which the bulls will likely try to protect. Another possibility is for the price to rebound from the current level and buyers push XRP above the overhead resistance of $0.37. If this happens, it is possible for XRP to rally to $0.41. Also, this will likely act as a major hurdle again.
Dogecoin (DOGE)
DOGE rebounded at $0.07 as strong support on Dec. 20. This shows that buyers are trying to defend this level vigorously.
The pullback is possible to reach the downtrend line where the bears will form a strong defense. If DOGE price turns down from this level, it will increase the possibility of a break below the support at $0.07. If this level is broken, selling is likely to accelerate and DOGE price to drop to the vital support at $0.05. Contrary to this assumption, if buyers push the price above the 50-day SMA ($0.09), it will mean strong demand at lower levels. It is possible for DOGE price to rally to $0.11 later. Also, it’s possible that this will again act as a strong barrier.
ADA, MATIC, DOT, LTC and UNI analysis
Cardano (ADA)
Sellers tried to push Cardano below the support line of the falling wedge pattern on December 21 and 22. However, the bulls successfully maintained the level.
Buyers are trying to push the price up to the 20-day EMA ($0.29). This level is likely to act as a major obstacle. However, if the bulls surpass this, it is possible for ADA to rise to the 50-day SMA ($0.32) and then to the downtrend line. On the contrary, if the price drops from the current level, the bears will take their chances. Thus, they will try to push ADA below the support line. If they can achieve this, the downtrend is likely to extend to the psychological support of $0.20.
Polygon (MATIC)
MATIC is trying to start a charity rally. But the bears are not in the mood to give up. They are facing a stiff resistance near $0.81. However, the long tail on the December 22 candlestick indicates that the bulls continue to take the dips.
If buyers push the price above $0.81, a rise to the 20-day EMA ($0.84) is possible for MATIC. The falling 20-day EMA and RSI below 41 suggest that the bears have a slight advantage. Sellers will try to stop the relief rally again at the 20-day EMA. If the price declines from this level, a retest of $0.76 is possible. Conversely, if buyers push the price above the 20-day EMA, MATIC can attempt a move to the 50-day SMA ($0.90).
Polkadot (DOT)
The DOT broke below the $4.40 support on Dec. 22. However, as seen from the long tail on the candlestick, the bears failed to hold the lower levels. This indicates buying at lower levels.
The bulls will have to push the price above the 20-day EMA ($4.92) to continue their buying and show strength. The DOT is likely to rise to the 50-day SMA ($5.45) later. Also, an attempt to rally to the downtrend line later on is possible. Conversely, if the price drops and dips below $4.37, it will show that the downtrend remains intact. The DOT is likely to drop to $4 later. The downward sloping moving averages and the RSI near the oversold zone suggest that the bears are in command.
Litecoin (LTC)
LTC recovery is facing resistance near $67. The failure of the bulls to push the price towards the moving averages indicates that the bears are selling on every small rally.
The moving averages are on the verge of a bearish crossover and the RSI is in the negative territory. This points to an advantage for the bears. If the price declines and breaks the support at $61, a drop to $56 is possible for LTC. If the bulls want to invalidate this negative view, they will have to push the price above the moving averages and sustain it. LTC may then attempt to climb higher to $75, where the bears may face strong resistance again.
Uniswap (UNI)
UNI is trading in a tight range between the support line of the symmetrical triangle and $5.50. This shows that the bulls bought the lows but failed to break through the overall barrier at $5.50.
The downward sloping moving averages and RSI in the negative zone show an edge for the bears. If the price declines and dips below the triangle, a drop to $4.60 is possible for UNI. Alternatively, if the price rallies above $5.50, a rise to the 50-day SMA ($5.84) is possible for UNI. This level will again act as a resistance. However, if the bulls push the price above this, UNI is likely to reach the resistance line.
