Bitcoin (BTC) and most of the major altcoins have bounced off their immediate support levels, indicating that sentiment is improving and traders are buying on minor dips.
The billionaire and the third richest person in Mexico, Ricardo Salinas Pliego, said in his Christmas and New Year message to stay away from fiat money, calling it "fake money made of lies on paper." Instead, he advised people to "invest in Bitcoin."
Veteran Trader Peter Brandt warned that "chart pattern breakouts should be viewed with great suspicion" during the little-traded holiday period in the last half of December.
Analysts remain bullish for 2022. Crypto analyst and pseudonymous Twitter user DecodeJar believes that Bitcoin could exceed $ 100,000 and hit the conservative price target of $ 190,000.
Could Bitcoin continue its recovery in the coming days and lift altcoins? Let's study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin successfully held the 20-day exponential moving average (EMA) ($ 50,033) for the past three days, indicating that the bulls are buying on dips. This is likely to attract more buying from the bulls.
The 20-day EMA has started to appear and the Relative Strength Index (RSI) has risen to the positive zone, indicating that the bulls have an advantage.
If buyers push the price above the 38.2% Fib retracement level at $ 52,314, the prospects for a rally towards the stiff overhead resistance at $ 60,000 increase. The bears are likely to defend this level vigorously.
This bullish view will be reversed if the price turns down from the current level or upper resistance and breaks below the moving averages. That could lead the BTC / USDT pair to strong support at $ 45,456.
ETH / USDT
Ether (ETH) broke and closed above the 20-day EMA ($ 4,065) on December 23, but the bulls have been unable to take advantage of this advantage. This suggests that the bears have yet to give up and are selling on rallies.
The 20-day flat EMA and the RSI near the midpoint indicate a balance between supply and demand. The bullish momentum could rebound if the bulls push and hold the price above the overhead resistance at $ 4,200. This could clear the way for a possible rally to $ 4,488, followed by a retest of the all-time high at $ 4,868.
Conversely, if the price turns down from the current level and breaks below $ 3,893.23, it will suggest that the bears have gained the upper hand. That could lead the ETH / USDT pair to $ 3,643.73 and then to the 200-day Simple Moving Average (SMA) ($ 3,339).
BNB / USDT
After trading near the 20-day EMA ($ 549) for the past three days, Binance Coin (BNB) has overcome resistance on December 27.
The 20-day EMA is flat and the RSI is just above the midpoint, which suggests a state of balance between the bulls and the bears. If the price sustains above the 20-day EMA, it will indicate that the bulls have dominated the bears.
The BNB / USDT pair could first rise to $ 575 and then rise to $ 617. Alternatively, if the price turns down from the current level, the bears will try to carry the pair to $ 500. This is an important support that the bulls must defend because If it breaks, the slide could extend to the 200-day SMA ($ 442).
SOL / USDT
SolariumSUN) broke and closed above the 20-day EMA ($ 187) on December 23, indicating that the correction may be ending. The bears tried to lower the price below the 20-day EMA on December 24, but the bulls did not relent.
This may have attracted more purchases from merchants. The SOL / USDT pair could now climb to the resistance line of the descending wedge pattern where bears are likely to mount stiff resistance.
If the price turns down from the resistance line but bounces off the 20-day EMA, it will suggest that the bulls are buying on every minor drop. That will increase the chance of a break above the wedge, opening the doors for a retest of $ 259.90.
Conversely, if the price turns down and breaks below the 20-day EMA, the pair could slide to $ 167.88. A break below this support can sink the pair to the 200-day SMA ($ 125).
ADA / USDT
The bulls successfully defended the 20-day EMA ($ 1.39) for the past three days. This indicates that sentiment has turned positive and traders are buying on dips. CardanoTHERE ARE) resumed his recovery on December 27.
The RSI has risen above 58 and the 20-day EMA has started to appear, indicating that the bulls are attempting to turn back. The ADA / USDT pair could rise to $ 1.76 and then to the stiff resistance above $ 1.87.
This bullish view will be invalidated if the price turns down from the current level and breaks below the 20-day EMA. Such a move will suggest that the bears are selling out on rallies. The bears will try to bring the pair below $ 1.18. If they do, the pair could drop to $ 1.
XRP / USDT
Ripple (XRP) rejected from psychological resistance at $ 1 on Dec 24, indicating that the bears are active at higher levels. Sellers pushed the price to the 20-day EMA ($ 0.90), but a minor upside is that the bulls have held this level for the past three days.
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 could rally to $ 1. A breakout and close above this level could complete a reverse pattern of head and shoulders, which could open the doors for a possible rally to $ 1.25.
Conversely, if the price breaks down and sustains below the 20-day EMA, the pair could drop to $ 0.85. If this level also breaks, the decline could reach the critical support at $ 0.75. A strong bounce from this level could keep the pair within the $ 0.75-1 range for a few more days.
MOON / USDT
The bulls repeatedly pushed Terra MOON token above $ 100 resistance in the past three days, but they have not been able to sustain the higher levels. This suggests that the bears continue to defend this level aggressively.
The LUNA / USDT pair could now correct to the 38.2% Fib retracement level at $ 83.83 and then to the 50% retracement level at $ 77.72. This zone is likely to act as strong support.
If the price bounces in this zone, it will suggest that the trend is still bullish and traders are buying on dips. The bulls will again try to push the price above the all-time high at $ 103.60.
If they can do that, the pair could rise to $ 124.65 and then $ 150. This positive view will be invalidated if the price turns down and breaks below the 61.8% Fib retracement level at $ 71.61.
Related: Bitcoin climbs above $ 51K as the dollar flexes its muscles against the euro
AVAX / USDT
Avalanche (AVAX) once again bounced off the 20-day EMA ($ 109) on December 26, indicating that the bulls are buying on dips. Rising 20-day EMA and RSI above 57 indicate that the bulls have the upper hand.
If the price sustains above the 20-day EMA, the bulls will attempt to clear the upper resistance zone between the 61.8% Fib retracement level at $ 119.69 and the 78.6% retracement level. at $ 131.70. If they are successful, the AVAX / USDT pair could rise to the all-time high at $ 147.
Conversely, if the price turns down from the current level or the upper zone and plummets below the 20-day EMA, this would suggest that traders are recording gains at higher levels. The pair could then drop to $ 98 where buyers can try to stop the decline.
DOT / USDT
The bulls successfully defended the 20-day EMA ($ 28.91) on December 24 and 25, indicating that sentiment has turned positive and traders are buying on dips. Sustained purchases pushed Polkadot (POINT) above the resistance above $ 31.49 on December 27.
The 20-day EMA has gradually started to appear and the RSI has jumped into the positive territory, indicating that the bulls are in command.
If buyers hold the price above $ 31.49, the bullish momentum could pick up further and the DOT / USDT pair could start a new upward move. The first target on the upside is $ 39.35 and if this level is crossed, the next stop could be $ 43.56.
Contrary to this assumption, if the price turns down and breaks below the moving averages, the pair could fall to the strong support zone between $ 25 and $ 22.66.
DOGE / USDT
Dogecoin (DOGE) has been trading between the 20-day EMA ($ 0.18) and the overhead resistance at $ 0.19 for the past three days. This suggests that both the bulls and bears are playing it safe and not making big bets.
A breakout and close above $ 0.19 will indicate that the bulls have absorbed the supply. That could initiate a recovery to $ 0.22 and if this level is crossed, the DOGE / USDT pair could hit the 200-day SMA ($ 0.23).
The bulls will have to overcome this hurdle to signal the start of a sustained bullish move. Alternatively, if the price turns down and breaks below the 20-day EMA, it will suggest an advantage to the bears. Then the pair could slide towards the strong support at $ 0.15.
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.
