Bitcoin (BTC) price activity was smooth for the first few days of the new year and was mentally below the $ 50,000 level. Crypto Fear and Grid Index are in the range of 29/100 Fear.
On-chain analytics resource econometrics says that extreme fear stages are rare, meaning “limited reduction in 30 days”.
Bitcoin continues to receive support from many quarters. Jeremy Siegel, a professor at the Wharton School of Finance, told CNBC that Bitcoin has replaced gold as inflation in the minds of millennials.
Daily cryptocurrency market performance. Source: Coin360
Xavi investors are leaning towards Bitcoin to protect their portfolio against the devaluation of Fiat currency. Hungarian billionaire Thomas Peterfi claims that Fiat should invest 2% -3% of its cryptocurrency portfolio if it “goes to hell”.
Can Bitcoin abandon its range-based function and start moving in a trend? To learn this, let’s study the charts of the top 10 cryptocurrencies.
BTC / USDT
Bitcoin’s failure to rise above the 20-day Exponential Moving Average (EMA) ($ 48,449) indicates that bears are being sold at every small rally. The moving average is both declining and the Relative Strength Index (RSI) is in the negative zone, indicating a bearish gain.
BTC / USDT daily chart. Source: Trade View
The Bears will now try to keep the price under strong support at $ 45,456. If successful, it will propose the following steps to restart. The BTC / USDT pair will initially drop to a daily low of $ 42,000 on December 4 and if this level is broken, the next stop could be $ 40,000. The higher the price below the 20-day EMA, the more likely it is to decline.
Conversely, if prices rise and fall above the 20-day EMA, it could indicate that the bulls are trying to bounce back. The pair will then move to the 50-day Simple Moving Average (SMA) ($ 51,938), which could act as a strong barrier. If bulls raise prices above this level, it would suggest a possible change in the trend. The pair would then start raising 60,000.
ETH / USDT
Ether (ETH) has risen to a 20-day EMA ($ 3,899) in the support range of $ 3,643.73 to $ 3,503.68, which the Bears are facing a tough challenge.
ETH / USDT daily chart. Source: Trade View
The RSI indicates a bearish advantage in the middle and negative regions, which is gradually declining.
If prices continue to fall, the bears will again try to pull the ETH / USDT pair below the support zone. If they can, the couple can start the trip up to $ 3,270 and then up to $ 2,800.
Conversely, if the price rises above the bullish moving average, it indicates that the correction period may be over. The pair could then rise to 4,488
BNB / USDT
Binance Coin (BNB) reached $ 500 from strong support and reached 20-day EMA ($ 536) against buying resistance. The moving average is both declining and the RSI is in negative territory and offers a small gain for beers.
BNB / USDT daily chart. Source: Trade View
If the bulls move above the 20-day EMA, the BNB / USDT pair could rise to a resistance above $ 575. This layer can again play a serious defensive role. If prices fall below this level, the pair could be in the 500-575 range for a few days.
Conversely, if the price falls below the 20-day EMA, the Bears will try to lower the pair below $ 500 again. If they could do that, sales could accelerate and the pair could start a new recession up to $ 450.
SOL / USDT
Solana (SOL) has been trading between $ 167.88 and the 20-day EMA ($ 180) for the past few days, but this tight range is unlikely to last long.
SOL / USDT daily chart. Source: Trade View
Both the moving averages are declining and the RSI is in negative territory, indicating that it is in bearish control. If sellers pull the price below 167.88, the SOL / USDT pair could drop to $ 148.04 and then to $ 120.
Conversely, if the bulls move above the 20-day EMA, the pair will rise to 204.75. This level can again play a defensive role, but if the bulls cross this barrier, the pair will rise to the defensive line of the falling wage pattern.
ADA / USDT
Cardano (ADA) has been trading near the 20-day EMA ($ 1.37) for the past few days, indicating stagnation between bulls and bears.
ADA / USDT daily chart. Source: Trade View
If the bulls continue to move above the 20-day EMA, the ADA / USDT pair will show resistance at 9 1.59.