Bitcoin (BTC) has failed to rebound sharply following the fall on Dec. 11, suggesting selling pressure on relief rallies. Glassnode data shows that short-term holders (STHs), entities holding Bitcoin for 155 days or less, sent $1.93 billion worth of Bitcoin to exchanges on Dec. 11 and $2.08 billion on Dec. 12. The last time single-day selling crossed the $2 billion mark was way back in June 2022. This shows that speculators are in a hurry to dump their holdings.
However, lower levels are attracting buyers. Trading resource Material Indicators suggested that “institutional sized” bids could be seen but added that it was unclear if it was accumulation or a short-term trading opportunity with dips being purchased and rallies being sold.
Cointelegraph contributor Marcel Pechman analyzed derivatives data and said that Bitcoin remains on track to hit $50,000 despite the recent correction. He added that chances of “cascading liquidations” were low as the correction seems to have been “primarily driven by the spot market.”
What are the important support levels on Bitcoin that are likely to hold? Could altcoins also start a relief rally? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin has been holding above the 20-day exponential moving average ($40,870), but the bulls have failed to start a strong relief rally. This suggests hesitation to buy at higher levels.
The negative divergence on the relative strength index (RSI) suggests that the positive momentum could be slowing down. That puts the 20-day EMA at risk of breaking down. If that happens, the BTC/USDT pair could plummet to the 50-day simple moving average ($37,707).
Meanwhile, the bulls are likely to have other plans. They will try to push the price to the overhead resistance at $44,700. This level is expected to witness a tough battle between the bulls and the bears. If the buyers prevail, the pair could soar to $48,000.
Ether price analysis
Ether’s (ETH) shallow bounce off the strong support at $2,200 on Dec. 12 suggests a lack of demand at lower levels.
The bears are trying to build upon their advantage by pulling the price below the 20-day EMA ($2,192). If they sustain the lower levels, the selling could accelerate, and the ETH/USDT pair could tumble to the 50-day SMA ($2,029).
Conversely, if the price turns up and rises above $2,250, it will suggest that lower levels continue to attract buyers. The pair will then try to retest the 52-week high at 2,403. A rally above this resistance could start the next leg of the uptrend to $3,000.
BNB price analysis
BNB’s (BNB) price action has formed an inverse head-and-shoulders pattern, which will complete on a break and close above the neckline near $275.
The 20-day EMA ($238) has started to turn up, and the RSI is in the positive territory, indicating that bulls have the upper hand. The price could reach the neckline, where the bears are likely to mount a strong defense. If bulls overcome this barrier, the BNB/USDT pair could start a new up move toward the pattern target of $333.
Any dip from the current level is likely to find support at the moving averages. A break below the moving averages will suggest that the bulls are losing their grip. The pair may then tumble to the vital support at $223.
XRP price analysis
The bulls tried to stall XRP’s (XRP) pullback at the 50-day SMA ($0.62) on Dec. 11, but they could not push the price above the 20-day EMA ($0.63).
The selling resumed on Dec. 13, and the price fell below the 50-day SMA. Sellers will try to tug the price to the critical support at $0.56. This level is likely to witness solid buying by the bulls. The 20-day EMA has flattened out, and the RSI is just below the midpoint, indicating a possible range-bound action in the near term.
Buyers will be back in the driver’s seat after they push the price above $0.67. The XRP/USDT pair could thereafter climb to the overhead resistance at $0.74.
Solana price analysis
Solana (SOL) snapped back from the 20-day EMA ($64.46) on Dec. 11, but the bulls could not sustain the recovery.
The bears sold near $72 and again pulled the price to the 20-day EMA on Dec. 13. The negative divergence on the RSI suggests that the bullish momentum is weakening. If the price plunges below the 20-day EMA, the selling could accelerate, and the SOL/USDT pair may drop to the 50-day SMA ($53.73).
Alternatively, if the price turns up from the current level, it will indicate that the bulls continue to defend the 20-day EMA with vigor. The pair may then rise to $78.
Cardano price analysis
Cardano (ADA) is consolidating its gains between $0.65 and the 50% Fibonacci retracement level of $0.51, indicating that dips are being purchased.
The upsloping moving averages and the RSI in the overbought zone suggest that the path of least resistance is to the upside. The bulls will again try to shove the price above $0.65. If they manage to do that, the ADA/USDT pair could start the next leg of the uptrend toward $0.70 and then $0.78.
If bears want to prevent the upside, they will have to yank the price below $0.51 and the crucial support at the 20-day EMA ($0.47).
Dogecoin price analysis
Dogecoin (DOGE) turned down from the overhead resistance of $0.11 on Dec. 11 and dipped to the 20-day EMA ($0.09) on Dec. 13.
A strong bounce off the 20-day EMA will suggest that traders continue to buy on dips. The bulls will then make one more attempt to overcome the obstacle at $0.11. If they succeed, the DOGE/USDT pair could surge to $0.14 and later to $0.16.
This bullish view will be negated if the price continues lower and breaks below the 20-day EMA. If that happens, the pair could slide to the 50-day SMA ($0.08) and subsequently to $0.07.
Related: Why is Cardano price down today?
Avalanche price analysis
The bulls propelled Avalanche (AVAX) above the overhead resistance of $38 on Dec. 11 and 12, but could not sustain the higher levels.
That resulted in a pullback on Dec. 13, but a positive sign is that the bulls aggressively purchased the dip to the 38.2% Fibonacci retracement level of $34.36. Buyers have again pushed the price above $38. If the rebound sustains, the AVAX/USDT pair could retest the high at $42.89.
Contrarily, if the price fails to remain above $38, it will suggest that bears continue to view the rallies as a selling opportunity. A drop below $34.36 may open the downside target to the 20-day EMA ($28.22).
Polkadot price analysis
Polkadot’s (DOT) rally stalled just below the overhead resistance of $7.90 on Dec. 9, indicating profit-booking by short-term traders.
The price rebounded off the 20-day EMA ($6.19) on Dec. 11, but the bulls could not overcome the barrier at $7.36. That suggests bears are active at higher levels. Sellers will attempt to pull the DOT/USDT pair to the 20-day EMA, which remains the key level to keep an eye on.
A bounce off the 20-day EMA indicates that the sentiment remains positive and traders are buying on dips. The bulls will then make one more attempt to clear the hurdle at $7.90. On the contrary, a break below the 20-day EMA could sink the pair to the 50-day SMA ($5.35).
Polygon price analysis
Polygon’s (MATIC) rise above $0.89 on Dec. 8 was short-lived as the bears pulled the price back below the level on Dec. 11.
Buyers tried to push the price back above $0.89 on Dec. 12, but the bears held their ground. Sellers are trying to strengthen their position further by pulling the price below the 20-day EMA ($0.83). If they do that, it will suggest the start of a deeper correction toward $0.70.
This negative view will be invalidated in the short term if the price turns up sharply from the current level and rises above $0.89. That will indicate solid buying at lower levels. The pair may then climb to $0.95 and subsequently to $1.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.