Bitcoin Selling Pressure on Relief Rallies
Bitcoin (BTC) has failed to rebound sharply following the fall on Dec. 11, suggesting selling pressure on relief rallies. Short-term holders (STHs) sent a significant amount of Bitcoin to exchanges on those days, indicating that speculators are in a hurry to dump their holdings.
Attracting Buyers at Lower Levels
Lower levels of Bitcoin are attracting buyers, with potential “institutional sized” bids being seen. However, it remains unclear if this is accumulation or a short-term trading opportunity.
Bitcoin Price Analysis
Bitcoin has been holding above the 20-day exponential moving average ($40,870), but the bulls have failed to start a strong relief rally. The negative divergence on the relative strength index (RSI) suggests that positive momentum may be slowing down. If the 20-day EMA breaks down, Bitcoin could plummet to the 50-day simple moving average ($37,707).
Ether Price Analysis
Ether’s bounce off the support level at $2,200 suggests a lack of demand at lower levels. If the price falls below the 20-day EMA ($2,192), selling could accelerate and push Ether to the 50-day SMA ($2,029). On the other hand, a rise above $2,250 would indicate continued buyer interest and potentially lead to a retest of the 52-week high at $2,403.
BNB Price Analysis
BNB’s price action has formed an inverse head-and-shoulders pattern. Breaking above the neckline near $275 could signal further upward movement towards the pattern target of $333. However, if BNB falls below the moving averages, it may suggest weakening bullish momentum and a potential drop to the support at $223.
XRP Price Analysis
XRP’s pullback below the 50-day SMA ($0.62) indicates selling pressure. The price could be tugged towards the critical support level at $0.56. Range-bound action is expected in the near term, but a breakout above $0.67 would put buyers back in control and target the overhead resistance at $0.74.
Solana Price Analysis
Solana’s recovery from the 20-day EMA ($64.46) was short-lived, with bearish momentum possibly accelerating if the price falls below the EMA. On the other hand, a bounce from the current level would indicate continued defense of the EMA by bulls, potentially leading to a rise to $78.
Cardano Price Analysis
Cardano is consolidating its gains between $0.65 and the 50% Fibonacci retracement level of $0.51, indicating buying during dips. Upsloping moving averages and an overbought RSI suggest an upside path of least resistance, with a potential move towards $0.70 and then $0.78 if bulls push above $0.65.
Dogecoin Price Analysis
Dogecoin turned down from overhead resistance at $0.11 and dipped to the 20-day EMA ($0.09). A strong bounce off the EMA suggests continued buying on dips, with a potential surge towards $0.14 and later to $0.16 if bulls overcome the resistance at $0.11.
Avalanche Price Analysis
Avalanche pulled back after surpassing overhead resistance at $38, but bulls aggressively bought the dip to the 38.2% Fibonacci retracement level of $34.36. Rebounding above $38 could lead to a retest of the high at $42.89, while a drop below $34.36 may open the downside target to the 20-day EMA ($28.22).
Polkadot Price Analysis
Polkadot’s rally stalled below overhead resistance at $7.90, suggesting profit-booking by short-term traders. A break below the 20-day EMA ($6.19) could pull the price further down, while a bounce off the EMA would indicate positive sentiment and potential attempts to clear the hurdle at $7.90.
Polygon Price Analysis
Polygon’s rise above $0.89 was short-lived as bears pulled the price back below that level. If sellers sustain levels below the 20-day EMA ($0.83), a deeper correction towards $0.70 could occur. However, a sharp rebound above $0.89 would suggest solid buying and potential climbs to $0.95 and $1.
Hot Take: Crypto Market Shows Mixed Signals
The crypto market is currently showing mixed signals, with Bitcoin facing selling pressure on relief rallies while lower levels attract buyers. Altcoins like Ether, BNB, XRP, Solana, Cardano, Dogecoin, Avalanche, Polkadot, and Polygon also have their own price dynamics and support/resistance levels to watch out for.
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