The future of cryptocurrencies is bright and exciting. As the world’s largest economy, China has been a major player in cryptocurrency adoption since its inception. Experts predict that the Chinese market will be one of the most important to watch as the globe transitions into a crypto-fueled economic system.
The “cointelegraph price analysis” is a blog post that discusses the current cryptocurrency market. The article includes information about the prices of BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX and DOT.
Bitcoin (BTC) continues to lose ground in December, indicating that traders are cashing in on their profits before the year’s conclusion. Because of the uncertainty surrounding the spread of the COVID-19 Omicron form in numerous regions of the globe, the absence of a Santa bounce in the US financial markets implies that risk-off attitude remains.
Even after the dramatic decrease in Bitcoin’s price, institutional demand remains lukewarm, with statistics showing that the Grayscale Bitcoin Trust (GBTC), the biggest institutional Bitcoin instrument, is selling at a discount of more than 20%.
Performance of the bitcoin market on a daily basis. Coin360 is the source of this information.
“High volume panic capitulations,” according to veteran trader Peter Brandt, normally suggest a bottom in Bitcoin, but this hasn’t occurred yet during the current slide from the all-time high. This might be a sign that the “genuine” surrender is yet to come.
Will Bitcoin and most other major cryptocurrencies continue to fall in the coming days, or will a Santa rally save the day? Let’s look at the charts of the top ten cryptocurrencies to see what we can learn.
For the previous several days, the bulls have successfully defended the 200-day simple moving average ($47,130), but they have been unable to push the price beyond the 20-day exponential moving average ($49,622). This indicates that there is a dearth of demand at the upper levels.
Daily chart of BTC/USDT. TradingView is the source of this information.
On Dec. 20, the bears dragged the price below the 200-day SMA, and if the price remains below this critical level, the selling might accelerate. The BTC/USDT pair is on the verge of striking the $42,000 to $39,600 strong support zone. The bulls are expected to defend this zone vehemently, although the rebound might be hampered by resistance around the 200-day SMA.
If the price climbs above the 20-day EMA and turns up from its present position, this bearish view will be invalidated. A move like this suggests that the break below the 200-day SMA was a bear trap. After that, the duo might increase to $52,000 before attempting a rally to $60,000.
For the previous several days, Ether (ETH) has been trading in a downward channel. On Dec. 13, a rebound off the channel’s support line failed to climb above the 20-day EMA ($4,058), suggesting that bears are selling rallies.
Daily chart of ETH/USDT. TradingView is the source of this information.
The 20-day exponential moving average (EMA) is downsloping, and the relative strength index (RSI) is below 43, indicating that the path of least resistance is to the downside. The ETH/USDT pair may drop to $3,643.73 and subsequently to the channel’s support line.
A big bounce off the support line might prolong the channel’s stay for a few more days. The bulls will next seek to drive the price above the channel once again. If they succeed, it means that the selling pressure is beginning to ease.
If the price falls below the channel, the bears may try to take out the 200-day SMA ($3,288). If the price breaks and closes below this level, the selling might become much more intense.
For the previous several days, buyers have successfully defended the 100-day SMA ($509), but they have been unable to push Binance Coin (BNB) above the 20-day EMA ($552). This shows that at larger levels, demand dries up.
Daily chart of the BNB/USDT currency pair. TradingView is the source of this information.
Bears have the upper hand, as seen by the downsloping 20-day EMA and the RSI in the negative zone. The BNB/USDT pair might drop below the 200-day SMA ($436) if the price breaks and stays below the 100-day SMA.
In contrast to this belief, if the price climbs above the 20-day EMA from its present level, it indicates that the bulls have absorbed the supply. This might set the stage for a rally to $617 and then to $669.30, which is the severe overhead barrier.
On Dec. 19, Solana (SOL) reversed from the 20-day EMA ($183), showing that bears are defending this level aggressively. A retest of $148.04 is probable if the price falls and stays below $167.88.
Daily chart of SOL/USDT. TradingView is the source of this information.
This is a key support to keep an eye on, as a break below it may send the SOL/USDT pair down below the 200-day SMA ($120). The 20-day EMA is downsloping, and the RSI is below 43, indicating that bears are in charge.
If the price rises from its present level and breaks above the 20-day EMA, this bearish outlook will be invalidated. Such a change might indicate that selling pressure is easing. After there, the pair might try a rally to $200, and eventually to $240.
In recent days, Cardano (ADA) has regularly rebounded off firm support around $1.18, but bulls have been unable to take the price over the 20-day EMA ($1.35). This indicates that there is a shortage of demand at higher levels.
Daily chart of the ADA/USDT currency pair. TradingView is the source of this information.
The bears will now try to push the market below $1.18 and keep it there. If they succeed, the ADA/USDT pair might fall below $1, which is important support. This level is expected to be vigorously defended by the bulls.
A break and closure above the 20-day EMA will be the first indicator of strength. This indicates that demand is greater than supply. The pair might advance to $1.47 before attempting a rally to the $1.87 overhead barrier.
For the previous three days, XRP has been trading between $0.75 and $0.85. Bulls lifted the price over $0.85 today, but the candlestick’s lengthy wick signals that bears are still selling on rallies.
Daily chart of XRP/USDT. TradingView is the source of this information.
The RSI has made a robust recovery from oversold levels, suggesting that the negative momentum is fading. This might keep the XRP/USDT pair trapped in the range for a few days longer.
The bulls will have beaten the bears if they can break and close above $0.85. This might boost the price to $1, a psychologically significant level. A break and closure below $0.75, on the other hand, might pave the way for a slide below $0.60.
Terra’s LUNA token hit a new all-time high today, but the day’s candlestick has a lengthy wick, suggesting that short-term traders are taking gains at higher levels.
Daily chart of the LUNA/USDT pair. TradingView is the source of this information.
The bears will seek to drag the LUNA/USDT pair below the 20-day EMA ($64) if the price remains below $78.29. This is a critical support to watch since a strong recovery from it would indicate that traders are buying on dips and sentiment is still favorable.
The bulls will next attempt to push the price over the $78.29 to $81.87 overhead zone once again. If they succeed, the pair may begin to surge toward the psychological level of $100.
Bears pulling the price below the 20-day EMA, on the other hand, indicates that traders are leaving their holdings. This might push the price of the pair down to $50.
According to a study, 0.01 percent of Bitcoin owners control 27% of all circulating currencies.
On December 14, Avalanche (AVAX) rallied off a solid support level of $75.50 and broke above the downtrend line on December 15. Bulls are striving to restart the upswing, as seen by this.
Daily chart of AVAX/USDT. TradingView is the source of this information.
However, after reaching the 61.8 percent Fibonacci retracement level of $119.69, the uptrend reversed, showing that bears are selling on rallies. At the 20-day EMA ($99), the AVAX/USDT pair has found key support.
If the price rises over the present level, purchasers will try to restart the upward trend. A break and closure above $119.69 might pave the way for a surge to $131.70, then to $147, the all-time high.
If the price breaks and holds below the 20-day EMA, the pair might fall below $75.50, which is a solid support level.
For the previous several days, Polkadot (DOT) has been trading below the 200-day SMA ($28.82). This indicates that bears are in charge. The sellers are aiming to lower the price below the strong support zone of $25 to $22.66.
Daily DOT/USDT chart. TradingView is the source of this information.
If they succeed, the DOT/USDT pair might continue to fall into the next support level at $16.81. The longer the price continues below the 200-day SMA, the more likely it is that the downtrend will continue.
If the price bounces off the present zone, the bulls will make another effort to push the pair over the 200-day SMA, contrary to popular belief. If they succeed, it will indicate that the bears’ grasp is slipping. After that, the pair might increase to $39.35.
On Dec. 14, Dogecoin (DOGE) bounced off a solid support level of $0.15 and rocketed over the 20-day EMA ($0.18), although the candlestick’s lengthy wick indicates that traders sold at higher levels.
Daily chart of DOGE/USDT. TradingView is the source of this information.
On December 15, the bears dragged the stock down below the 20-day EMA. The aggressive bulls may have been cornered and forced to liquidate their position as a result. This has dragged the price down below $0.15, which is a significant support level.
If the price breaks and closes below this level, it may be dragged to the December 4 low of $0.13. If this support breaks, the DOGE/USDT pair might fall below $0.10, which is a psychological threshold. If the price rises above the present level, the bulls will try to break through the overhead barrier at the 20-day EMA and $0.19.
The author’s thoughts and opinions are purely his or her own and do not necessarily represent those of Cointelegraph. Every investing and trading decision has some level of risk. When making a choice, you should do your own research.
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