Bitcoin and some altcoins are showing signs of a possible near-term recovery, but higher levels could continue to attract sellers.

At the end of the year, investors will be watching closely for a Santa Claus rally on Wall Street as many believe that the next year could either remain flat or turn negative absent the rally.

Jurrien Timmer, director of global macroeconomics at asset management giant Fidelity Investments, tweeted on Dec. 19 that US stock markets could remain “sideways” and choppy in 2023. He expects “one or more retests of the 2022 low, but not necessarily.” much worse than that.”

Daily performance of the cryptocurrency market. Source: Coin360
The cryptocurrency market was broadly correlated with the S&P 500 in 2022. Unless the two markets decouple, sideways or negative moves in the stock markets may not bode well for the crypto market. currencies.

Analysts remain divided on the future price development for bitcoin
Bitcoin

ticker below
$16,834

. While some are anticipating a rally, others are anticipating a further downtrend. Let’s study the charts of the top 10 cryptocurrencies to determine the path of least resistance in the short-term.

BTC/USDT
Although Bitcoin has been trading below the 20-day exponential moving average (EMA) of $16,985 since December 16, the bears have failed to capitalize on this situation. This suggests that the lower levels are attracting buyers.

BTC/USDT daily chart. Source: Trade View
Bitcoin/Tether
USDT

ticker below
$1.00

the pair posted modest gains on December 20 to reach the 20-day EMA. This is a key level for bears to defend in the short-term as a break above it could pave the way for an eventual rally to $17,622 and then $18,387.

Alternatively, if the price breaks off the moving averages and falls below $16,256, selling could accelerate and the pair could drop to $16,000 and then retest the $15,476 pivot level.

The flat 20-day EMA and the Relative Strength Index (RSI) near 47 do not provide a clear advantage for either the bulls or the bears. This could lead to random short-term price volatility as buyers and sellers try to assert their supremacy.

ETH/USDT
ether
ETH

ticker below
$1,218

bounced off the nearby support at $1,150 on Dec 20th, suggesting that the lower levels are attracting buyers. The recovery rally has touched the 20-day EMA of $1,233 where the bears can mount a strong defense.

ETH/USDT daily chart. Source: Trade View
If the price breaks down from the 20-day EMA, the bears will make another attempt to drag the ETH/USDT pair below the $1,150 support. If successful, it will complete a short-term head and shoulders pattern. This setup has a target of $948.

If the buyers instead catapult the price above the moving averages, the pair could rally to $1,352. This level may serve as a major hurdle again, but if broken, the rally could hit the downtrend line. Bears should do everything they can to protect this level as a break above it could signal a possible trend reversal.

BNB/USDT
BNB
BNB

ticker below
$244

bounced from $220 on Dec 17 but pullback is offset by a sharp sell-off at $250. This suggests that the bears are trying to turn the level into resistance.

BNB/USDT daily chart. Source: Trade View
The descending moving averages and the RSI near 40 indicate that the bears are in control. If the price declines and falls below $236, the BNB/USDT pair might retest the $220 support. A break below this level could sink the pair to $200.

This bearish view could be invalidated in the short-term if buyers push the price above the 20-day EMA of $265. The pair could then extend its relief rally to the 50-day simple moving average (SMA) of $286 and later to $318.

XRP/USDT
XRP
XRP

ticker below
$0.35

fell below the $0.37 support on Dec 16, suggesting that the bears have taken over in the short term. The price could fluctuate in a wide range between $0.30 and $0.41 in the next few days.

XRP/USDT daily chart. Source: Trade View
Any recovery rally is likely to face stiff resistance at the moving averages and again at $0.41. If the bulls want to gain the upper hand, they need to catapult the price above $0.41. vs

Source: CoinTelegraph

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