Bitcoin (BTC) continues to lose ground in December, a sign that traders may be locking in their profits before the end of the year. The lack of a Santa rally in the US equity markets indicates that risk sentiment prevails due to uncertainty regarding the spread of the omicron COVID-19 variant in various parts of the world.
Even after the sharp drop in Bitcoin price, demand from institutional investors remains tepid, and data shows that Bitcoin's largest institutional product, the Grayscale Bitcoin Trust (GBTC), is negotiate with a discount of more than 20%.
Veteran merchant Peter Brandt said that "high volume panic capitulations โgenerally signal a bottom in Bitcoin and that has yet to happen during the current decline from the all-time high. This could be an indication that the "real" capitulation is yet to occur.
Could Bitcoin and most of the major altcoins continue their downward movement in the coming days or will a Santa rally come to the rescue? Let's study the charts of the top 10 cryptocurrencies to find out.
The bulls have been defending the 200-day simple moving average (SMA) ($ 47,130) for the past few days, but have been unable to push the price above the 20-day exponential moving average (EMA) ($ 49,622). This shows a lack of demand at higher levels. The bears pushed the price down below the 200-day SMA on December 20 and if the price sustains below this crucial level, the selling may pick up momentum. The BTC / USDT pair is at risk of hitting the strong support zone at $ 42,000 to $ 39,600. The bulls are likely to defend this zone aggressively, but the recovery may face a stiff challenge at the 200-day SMA. This negative view could be invalidated if the price rises from the current level and rises above the 20-day EMA. Such a move would suggest that the break below the 200-day SMA could have been a bearish trap. The pair could then rally to $ 52,000 and then attempt a rally to $ 60,000. Ether (ETH) has been trading within a descending channel for the past few days. The bounce off the channel's support line on December 13 failed to rise above the 20-day EMA ($ 4,058), indicating that the bears are selling out on rallies. The descending 20-day EMA and the Relative Strength Index (RSI) below 43 suggest that the path of least resistance is to the downside. The ETH / USDT pair could slide to $ 3,643.73 and then to the channel support line. A strong bounce off the support line could extend the stay within the channel for a few more days. The bulls will make one more attempt to push the price above the channel. If they are successful, it will indicate that the selling pressure may be easing. Alternatively, if the price breaks below the channel, the bears could challenge the 200-day SMA ($ 3,288). A breakout and close below this level could intensify selling. Buyers successfully defended the 100-day SMA ($ 509) for the past few days, but were unable to pressure Binance Coin (BNB) above the 20-day EMA ($ 552). This suggests that demand is depleting to higher levels. The falling 20-day EMA and the RSI in the negative zone suggest that the bears have the upper hand. If the price breaks down and sustains below the 100-day SMA, the BNB / USDT pair could fall to the 200-day SMA ($ 436). Contrary to this assumption, if the price rises from the current level and rises above the 20-day EMA, it will suggest that the bulls have absorbed the supply. That could initiate a rally to $ 617 and alongside the stiff overhead resistance at $ 669.30. SolariumSUN) rejected from the 20-day EMA ($ 183) on December 19, indicating that the bears are defending this level with vigor. If the price slides and sustains below $ 167.88, a retest of $ 148.04 is possible. This is an important support to watch out for because a break below it could sink the SOL / USDT pair to the 200-day SMA ($ 120). The falling 20-day EMA and RSI below 43 suggest that the bears are in control. This negative view will be invalidated if the price rises from the current level and breaks above the 20-day EMA. Such a move will suggest that the selling pressure may be easing. The pair could attempt a rally to $ 200 and then $ 240. CardanoTHERE ARE) repeatedly bounced off the strong support at $ 1.18 in recent days, but the bulls have been unable to push the price above the 20-day EMA ($ 1.35). This suggests a lack of demand at higher levels. The bears will now try to sink and hold the price below $ 1.18. If they manage to do that, the ADA / USDT pair could fall to the critical support at $ 1. The bulls are likely to defend this level aggressively. The first sign of strength will be a breakout and a close above the 20-day EMA. Such a move will indicate that demand exceeds supply. The pair could rally to $ 1.47 first and then attempt a rally towards overhead resistance at $ 1.87. Ripple (XRP) has been trading between $ 0.75 and $ 0.85 for the past few days. The bulls pushed the price above $ 0.85 on December 20, but the long wick on the candle suggests that the bears continue to sell on rallies. The RSI has rebounded strongly from oversold levels, indicating that bearish momentum may be losing steam. This could keep the XRP / USDT pair stuck in the range for a few more days. A breakout and close above $ 0.85 will indicate that the bulls have dominated the bears. That could drive the price to the $ 1 psychological mark. Alternatively, a breakout and close below $ 0.75 could open the doors for a possible decline to $ 0.60. Terra's LUNA token shot to a new all-time high on December 20, but the long wick in the day's candle suggests that short-term traders may be booking gains at higher levels. If the price sustains below $ 78.29, the bears will attempt to carry the LUNA / USDT pair to the 20-day EMA ($ 64). This is an important support to watch out for because a strong bounce will suggest that sentiment remains positive and traders are buying on dips. The bulls will retry to push the price above the $ 78.29 zone to $ 81.87. If they do that, the pair could begin its rally towards the psychological mark at $ 100. Conversely, if the bears drop the price below the 20-day EMA, it will suggest that the traders are exiting their positions. That could sink the pair to $ 50. Related: 0.01% of Bitcoin Holders Control 27% of All Coins in Circulation: Study Avalanche (AVAX) bounced off the strong support at $ 75.50 on December 14 and broke above the downtrend line on December 15. This indicated that the bulls are attempting to resume the uptrend. However, the bullish move turned down from the 61.8% Fib retracement level to $ 119.69, indicating that the bears are selling out on rallies. The AVAX / USDT pair has reached critical support at the 20-day EMA ($ 99). If the price recovers from the current level, the buyers will again try to resume the upward movement. A breakout and close above $ 119.69 could clear the way for a rally to $ 131.70 and then to the all-time high of $ 147. Conversely, if the price breaks down and sustains below the 20-day EMA, the pair could move down to the strong support at $ 75.50. Moles (POINT) has been trading below the 200-day SMA ($ 28.82) for the past few days. This suggests that the bears are in command. Sellers are trying to sink the price below the strong support zone of $ 25 to $ 22.66. If they manage to do that, the DOT / USDT pair could extend its journey down to the next support at $ 16.81. The longer the price remains below the 200-day SMA, the greater the possibility that the downtrend will continue. Contrary to this assumption, if the price bounces off the current zone, the bulls will make one more attempt to push the pair above the 200-day SMA. If they are successful, it will suggest that the bears are losing control. Then the pair could rise to $ 39.35. Dogecoin (DOGE) rebounded from the strong support at $ 0.15 on December 14 and spiked above the 20-day EMA ($ 0.18), but the long wick on the candle shows that traders sold at higher levels. The bears lowered the price below the 20-day exponential moving average (EMA) on December 15. This could have caught aggressive bulls who were then forced to liquidate their position. This has brought the price to the strong support at $ 0.15. A breakout and close below this level could push the price to the December 4 low of $ 0.13. If this support breaks, the DOGE / USDT pair could fall to the psychological level at $ 0.10. Conversely, if the price rebounds from the current level, the bulls will again try to overcome the overhead hurdle at the 20-day EMA and $ 0.19. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and commercial movement involves a risk. You should do your own research when making a decision. Market data is provided by HitBTC exchange.
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