Bitcoin (BTC) and most major altcoins have bounced off their immediate support levels, indicating that the sentiment is improving and traders are buying on minor dips.
Billionaire and Mexico’s third-richest person Ricardo Salinas Pliego said in his Christmas and New Year message to stay away from fiat money, terming it as “fake money made of paper lies.” 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 thinly 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 surpass $100,000 and reach the conservative price target at $190,000.
Could Bitcoin continue its recovery in the next few days and pull altcoins higher? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin successfully held the 20-day exponential moving average ($50,033) for the past three days, signaling that bulls are buying on dips. This is likely to attract further buying from the bulls.
The 20-day EMA has started to turn up and the relative strength index (RSI) has risen into the positive zone, indicating that bulls are at an advantage.
If buyers propel the price above the 38.2% Fibonacci retracement level at $52,314, the prospects of a rally to the stiff overhead resistance at $60,000 increase. The bears are likely to defend this level with vigor.
This bullish view will be negated if the price turns down from the current level or the overhead resistance and breaks below the moving averages. That could pull the BTC/USDT pair to the strong support at $45,456.
ETH/USDT
Ether (ETH) broke and closed above the 20-day EMA ($4,065) on Dec. 23 but the bulls have not been able to build upon this advantage. This suggests that the bears have not yet given up and are selling on rallies.
The flat 20-day EMA and the RSI near the midpoint indicate a balance between supply and demand. The bullish momentum could pick up if bulls propel and sustain the price above the overhead resistance at $4,200. This could clear the path for a possible rally to $4,488, followed by a retest of the all-time high at $4,868.
On the contrary, if the price turns down from the current level and breaks below $3,893.23, it will suggest that bears have gained the upper hand. That could pull the ETH/USDT pair to $3,643.73 and then to the 200-day simple moving average ($3,339).
BNB/USDT
After trading close to the 20-day EMA ($549) for the past three days, Binance Coin (BNB) has climbed above the resistance today.
The 20-day EMA is flat and the RSI is just above the midpoint, suggesting a status of equilibrium between the bulls and the bears. If the price sustains above the 20-day EMA, it will indicate that bulls have overpowered the bears.
The BNB/USDT pair could first rally to $575 and then rise to $617. Alternatively, if the price turns down from the current level, the bears will attempt to pull the pair to $500. This is an important support for the bulls to defend because if it cracks, the decline could extend to the 200-day SMA ($442).
SOL/USDT
Solana (SOL) broke and closed above the 20-day EMA ($187) on Dec. 23, indicating that the correction may be ending. The bears tried to pull the price back below the 20-day EMA on Dec. 24 but the bulls did not relent.
This may have attracted further buying by traders. The SOL/USDT pair could now rise to the resistance line of the falling wedge pattern where the bears are likely to mount stiff resistance.
If the price turns down from the resistance line but rebounds off the 20-day EMA, it will suggest that bulls are buying on every minor dip. That will increase the possibility 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 may 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 the sentiment has turned positive and traders are buying on dips. Cardano (ADA) has resumed its recovery today.
The RSI has risen above 58 and the 20-day EMA has started to turn up, indicating that bulls are attempting a comeback. The ADA/USDT pair could rise to $1.76 and then to the stiff overhead resistance at $1.87.
This bullish view will invalidate if the price turns down from the current level and breaks below the 20-day EMA. Such a move will suggest that bears are selling on rallies. The bears will then attempt to pull the pair below $1.18. If they do that, the pair could drop to $1.
XRP/USDT
XRP turned down…
cointelegraph.com