Bitcoin and select altcoins remain under pressure as bounces off support levels are being sold into.
Bitcoin and select altcoins remain under pressure as bounces off support levels are being sold into.
Investors have faced a tumultuous year in 2022 as stocks, bonds, and the cryptocurrency sector have all witnessed sharp declines. As of Nov. 30, the performance of a traditional portfolio comprising 60% stocks and 40% bonds has been the worst since 1932, according to a report by Financial Times.
The next big question troubling crypto investors is whether the pain in Bitcoin (BTC) is over or will the downtrend continue in 2023.
Analysts seem to be divided in their opinion for the first quarter of the new year. While some expect a drop to $10,000 others anticipate a rally to $22,000.
While the near-term remains uncertain, research and trading firm Capriole Investments said in its latest edition of the Capriole Newsletter that Bitcoin could copy gold’s explosive bull move in the 1970s and if that happens, Bitcoin could soar past $600,000 over the next few years.
Could Bitcoin and altcoins start a recovery in the short term? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin slipped below the immediate support of $16,559 on Dec. 28. This indicated that the tight range had resolved in favor of the bears. The next support on the downside is $16,256.
The bears tried to pull the price below $16,256 on Dec. 30 but the long tail on the candlestick shows that bulls are trying to protect the level. Buyers may face a strong resistance at the moving averages.
If the price turns down from the 20-day exponential moving average ($16,820), the possibility of a break below $16,256 increases. The BTC/USDT pair could then dive to the $16,000 and $15,476 support zones.
Conversely, if the price turns up from the current level and breaks above the moving averages, it will suggest strong buying at lower levels. That could trigger a rally to the $18,000 to $18,388 zone.
ETH/USDT
Ether (ETH) continues to trade between the support at $1,150 and the 20-day EMA ($1,218). This suggests that the sentiment remains negative and traders are selling on rallies.
The bears will try to pull the price to $1,150. This is an important support to watch out for in the near term because if it cracks, the ETH/USDT pair will complete a bearish head and shoulders pattern and may plunge to $1,075.
The bulls successfully defended this level on two previous occasions, hence they may try to do that again. If they can pull it off, the pair may extend its range-bound action between $1,075 and $1,352 for a few more days.
On the other hand, if bears sink the price below $1,075, the pair could fall to the psychologically critical level of $1,000 and later to the pattern target of $948.
BNB/USDT
BNB (BNB) continues to trade in a tight range near the overhead resistance zone between $250 and $255. This suggests that both the bulls and the bears are battling it out for supremacy.
Usually, such tight ranges are followed by a sharp pick-up in volatility but it is difficult to predict the direction of the breakout. Hence, it is better to wait for the breakout to happen before jumping in.
If buyers kick the price above $255, several short-term bears may get trapped. They may then hurry to close their positions, which could catapult the BNB/USDT pair to the 50-day simple moving average ($272).
Contrarily, if the price turns down and slips below $236, the pair may drop to $220. This level may act as a minor support but if it gives way, the pair could nosedive to $200.
XRP/USDT
XRP (XRP) bounced off the support line of the symmetrical triangle on Dec. 29 but the bulls could not start a recovery. The bears maintained their grip and again pulled the price to the support line on Dec. 30.
Both moving averages are sloping down and the relative strength index (RSI) is below 39, indicating that the path of least resistance is to the downside. If the price drops below the support line, it will indicate that the bears have overpowered the bulls. The XRP/USDT pair could then retest the June low near $0.29.
Alternatively, if the price rebounds off the current level, the bulls will try to propel the pair above the 20-day EMA ($0.36). If they do that, the pair could ascend to the resistance line of the triangle.
DOGE/USDT
There was a weak attempt from the bulls to defend the important support at $0.07 on Dec. 29. The bears kept up the selling pressure and pushed Dogecoin (DOGE) below the key support on Dec. 30.
A break and close below $0.07 will complete a descending triangle pattern, which is a huge negative. The DOGE/USDT pair could then continue its decline and retest the crucial support near $0.05. If this support collapses, the pair could start…
cointelegraph.com