Bitcoin (BTC) is attempting to break above the psychologically critical level at $50,000 and close the year on a strong note. The up-move in Bitcoi
Bitcoin (BTC) is attempting to break above the psychologically critical level at $50,000 and close the year on a strong note. The up-move in Bitcoin has led to a sharp recovery in the value of the Crypto Fear & Greed Index from 27 to 45 within a day, signaling improving sentiment.
BlockFi co-founder Flori Marquez said in a recent interview that new talent, regulatory clarity and higher crypto prices could lead to a feeling of FOMO, boosting crypto adoption in 2022. Marquez added that the “majority of Blockfi’s clients–when they receive a BTC reward, they’re not selling that for cash.”
In another positive news that could boost crypto adoption further, popular internet browser Opera announced an integration with Polygon (MATIC), expected to go live in the first quarter of 2022. Millions of Opera users, first on the Android platform, and then on other devices, will get access to Polygon’s ecosystem.
Could Bitcoin and the major altcoins extend their recovery in the last few days of the year? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin dipped below the 200-day simple moving average ($47,259) on Dec. 17 but the bears could not build upon their advantage and extend the decline further. This shows that selling dried up at lower levels.
The bulls pushed the price back above the 200-day SMA on Dec. 21 but the recovery is facing resistance at the 20-day exponential moving average ($49,517). This indicates that bears have not yet given up and are selling on rallies.
If the price turns down from the current level, the bears will again try to sink the price below the 200-day SMA and extend the decline to the strong support zone at $42,000 to $39,600.
Conversely, if bulls drive the price above the 20-day EMA, the BTC/USDT pair could rise to $52,000. This level may act as a barrier but if bulls thrust the price above it, the rally could reach the next major hurdle at $60,000.
ETH/USDT
The bulls are attempting to push and sustain Ether (ETH) above the descending channel and the 20-day EMA ($4,055). If they succeed, it will suggest that the corrective phase could be over.
The buyers will then attempt to propel the price to $4,488 and next to the all-time high at $4,868. A break and close above this resistance will indicate the resumption of the uptrend. The pair could then rally to $5,859.
Contrary to this assumption, if the price turns down from the current level, it will suggest that the sentiment remains negative. The bears will then try to pull the price below $3,643.73. If they do that, the ETH/USDT pair could drop to the 200-day SMA ($3,302).
BNB/USDT
Binance Coin (BNB) has held the $500 psychological support for the past few days, indicating that buyers are defending the level aggressively.
The BNB/USDT pair could now rise to the downtrend line where the bears may again mount a strong resistance. If the price turns down from this resistance, it will suggest that the sentiment remains negative and traders are selling on rallies.
A break and close below $500 could start the next leg of the down move, which could reach the 200-day SMA ($437).
Alternatively, if bulls drive the price above the downtrend line, it will indicate that the correction may be over. The pair could then rise to $617 and later to the overhead resistance at $669.30.
SOL/USDT
Solana (SOL) has been trading close to the 20-day EMA ($183) for the past few days, indicating that the selling pressure could be reducing.
The flattening 20-day EMA and the relative strength index (RSI) just below the midpoint indicate that bulls are making a comeback. A breakout and close above the 20-day EMA could start a stronger recovery to $204.10 and then to $240.
Conversely, if the price turns down from the current level and breaks below $167, it will suggest that bears have absorbed the demand. That could clear the path for a drop to $148.04. If this support cracks, the SOL/USDT pair could plummet to the 200-day SMA ($121).
ADA/USDT
The failure of the bears to pull Cardano (ADA) below $1.18 has resulted in a recovery that has reached the 20-day EMA ($1.35).
If the price turns down from the current level, the sellers will again try to sink the ADA/USDT pair below $1.18. If they succeed, the next stop could be $1. The bulls are likely to defend this support aggressively as it has not been breached for the past many months.
On the other hand, if bulls push and close the price above the 20-day EMA, it will indicate the start of a sustained recovery. The first hurdle is $1.47 but if bulls push the price above it, the pair could reach the stiff overhead resistance at $1.87.
XRP/USDT
XRP broke and closed above the 20-day EMA ($0.87) on Dec. 20, suggesting that the selling pressure is…
cointelegraph.com