Bitcoin (BTC) is attempting to extend its recovery by rising above the psychological mark at $50,000, but several popular analysts believe that BTC
Bitcoin (BTC) is attempting to extend its recovery by rising above the psychological mark at $50,000, but several popular analysts believe that BTC could remain range-bound for a few weeks or even months.
On-chain analytics firm CryptoQuant said that Bitcoin “whales are still depositing BTC to exchanges.” This simply indicates that whales are setting themselves up to react at short notice depending on which path the price elects to take.
The sharp correction of the past few days has pulled the Crypto Fear and Greed Index to 16, which indicates a sentiment of “extreme fear.” Some believe the current fall looks similar to the March 2020 crash.
However, CoinCorner CEO Danny Scott said that Bitcoin’s fall was due to the liquidation of positions by gamblers and not because of sentiment. According to him, the sentiment is “still very bullish.”
After the most receshakeout, could Bitcoin start a strong recovery and lead crypto markets higher? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin broke below the uptrend line and the psychological support at $50,000, which may have resulted in panic selling by traders. Although bulls purchased the dip aggressively, they are finding it difficult to push the price above $50,000.
The downsloping 20-day exponential moving average ($55,551) and the relative strength index (RSI) near the oversold zone indicate that bears are in command. The sellers will attempt to flip the uptrend line into resistance. If that happens, the bears will again try to sink the BTC/USDT pair to the strong support zone at $42,000 to $39,600.
Alternatively, if bulls push the price above the uptrend line, the pair could rally to the 20-day EMA. This is an important level to watch out for because a break and close above it will be the first sign that bears may be losing their grip. The pair could then rally to the overhead resistance at $61,000.
ETH/USDT
Ether (ETH) plummeted below the 100-day simple moving average ($3,873) on Dec. 4 but the bears could not sustain the lower levels. This suggests that traders are accumulating on dips.
The recovery attempt is facing stiff resistance near $4,250. The bears again attempted to pull the price below the $3,900 support today but the long tail on the candlestick suggests that bulls are defending the level.
If buyers push and sustain the price above the 20-day EMA ($4,315), the ETH/USDT pair could rise to the overhead resistance at $4,868. A break and close above this resistance will indicate the resumption of the uptrend.
On the contrary, if the price turns down from the 20-day EMA, the bears will make one more attempt to sink and sustain the pair below the 100-day SMA. If they succeed, the pair could drop to $3,400.
BNB/USDT
Binance Coin (BNB) broke and closed below the 20-day EMA ($592) on Dec. 3. That was followed by a sharp sell-off on Dec. 4 which pulled the price to the 100-day SMA ($496).
The buyers aggressively defended the 100-day SMA as seen from the long tail on the day’s candlestick. The recovery could reach the 20-day EMA where the bears are likely to mount a strong resistance.
If the price turns down from the overhead resistance, the BNB/USDT pair could remain stuck between the moving averages.
A break and close above the 20-day EMA could clear the path for an up-move to the overhead resistance zone at $669.30 to $691.80. This positive view will be negated on a drop below the 100-day SMA. The pair could then drop to $435.30.
SOL/USDT
Solana (SOL) turned down and re-entered the triangle on Dec. 3. This could have trapped the aggressive bulls who bought the breakout of the triangle on Dec. 1 and 2.
The selling picked up momentum after the SOL/USDT pair broke and closed below the 20-day EMA ($209). The bears pulled the price below the support line of the triangle and the 100-day SMA ($181) on Dec. 4.
Although bulls purchased this dip and again defended the 100-day SMA on Dec. 5, they could not build upon the recovery.
The bears pounced on this opportunity and are currently attempting to sink the price below the 100-day SMA. If they manage to do that, the pair could drop to the strong support zone at $120 to $140.
ADA/USDT
Cardano (ADA) turned down from the 20-day EMA ($1.63) on Dec. 3, indicating that sentiment remains negative and traders are selling on rallies.
The selling intensified on Dec. 4 and the ADA/USDT pair plunged to $1.18. Although bulls purchased this dip, they could not sustain the recovery. This indicates that demand dries up at higher levels.
If bears sink the price below $1.18, the pair could plummet to the strong support at $1 where buyers are expected to defend the level with all their might. A break and close above the 20-day EMA will be the…
cointelegraph.com