Certain altcoins, including Bitcoin and DOGE, have rebounded from overhead resistance levels. According to crypto analyst Rakesh Upadhyay, this suggests that the bears are in control. Can Bitcoin lead a recovery in the last few days of the year or will the crypto markets end the year on a whim? The analyst examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
Gold performed better in 2022 compared to US stock markets and Bitcoin. The yellow metal was almost flat throughout the year, while the S&P 500 fell more than 19%. In this environment, Bitcoin lost roughly 64%. The sharp drop in Bitcoin’s price has affected both short-term and long-term investors alike. According to Glassnode data, 1,889,585 Bitcoins held by short-term holders are at a loss as of December 26. However, the losing tally of long-term holders was 6,057,858 Bitcoins.
Daily cryptocurrency market performance / Source: Coin360cryptocoin.com As we reported, despite the good performance of gold and the depressing performance of Bitcoin in 2022, billionaire investor Mark Cuban continues to prefer Bitcoin to gold. “If you have gold, you’re a complete idiot,” Cuban told Maher while speaking on Bill Maher’s Club Random podcast. He also advised Maher to “just buy Bitcoin”. Now it’s time for analysis…
BTC, ETH, BNB, XRP and DOGE analysis
Bitcoin (BTC)
For the past few days, Bitcoin has been stuck in a tight range between $16,559 and the 20-day exponential moving average ($16,877). This shows that both bulls and bears are absent during the holiday season.
The 20-day EMA is gradually going down. Also, its relative strength index (RSI) is close to 43. This marks a slight advantage for the bears. Selling is possible if the price declines and dips below $16,500. Thus, BTC is likely to drop into the $16,000-$15,476 support zone. Buyers are expected to fiercely defend this area. Because if this area collapses, it is possible for BTC to start the next leg of the downtrend. If the price rises from the current level and rises above the moving averages, it indicates that the bulls are attempting a reversal. It is possible for BTC to later rally to $18,388 where the rally will hit a roadblock again.
Ethereum (ETH)
The failure of the bulls to push ETH above the 20-day EMA ($1,223) indicates that the bears are vigorously defending the level. This likely caused the bulls to capitulate and close their positions.
ETH is now likely to drop to $1,182. If it fails to hold this support, a drop to the solid support at $1,150 is possible. If the price bounces off this level strongly, it will indicate that ETH will consolidate between $1,150 and $1,352 for a few days. On the other hand, if the price dips below $1,150, ETH will complete the downtrend. It is possible for ETH to drop to $1,075 first and then dive towards the $948 pattern target.
Binance Coin (BNB)
Buyers tried to push BNB above the overhead resistance zone between $250 and $255 on Dec. 27. But the bears held their ground. This shows that the bears are trying to turn the $250 level into resistance.
BNB is now possible to slide to near support at $236. If the price bounces back from this level, this will indicate that BNB will be stuck in a tight range between $236 and $255 for a while. It is possible that this will increase the likelihood of a break above overhead resistance. Conversely, if the price dips below $236, it will show that the bears are trying to assert their supremacy. BNB is likely to retest the critical support at $220 later. A break below this level would likely open the doors for a possible drop to $200.
Ripple (XRP)
XRP broke above the 20-day EMA ($0.36) on Dec. 26. However, the bulls couldn’t keep up the pace and couldn’t get past the hurdle on the resistance line of the symmetrical triangle. This may have encouraged short-term bulls to take profits.
XRP fell below the 20-day EMA again on December 28. XRP is now likely to drop to the support line of the triangle. This indicates that XRP will extend its stay in the triangle for a while. The next trend move will start after the price breaks out of the triangle. If the price breaks below the triangle, XRP is likely to drop to $0.30 and then to $0.25. Alternatively, if the price rises and rises above the triangle, a rally to $0.41 is possible.
Dogecoin (DOGE)
DOGE dropped to the critical support at $0.07 on Dec. 28. This level successfully stopped the attacks of the bears in the previous three times. Therefore, the bulls will try to protect it again.
DOGE The downward descending triangle pattern will be rejected if the price bounces back from the current level and rises above the downtrend line. This could cause the aggressive bears to short and the DOGE price to climb to $0.11. Conversely, if DOGE price breaks and closes below $0.07, the descending triangle pattern is complete. It is possible that this could start a downward move towards $0.06. Afterwards, it is likely to hit key support near $0.05.
ADA, MATIC, DOT, LTC and UNI analysis
Cardano (ADA)
The ADA recovery stalled just below the 20-day EMA ($0.27) on Dec. 27. This indicates that the aid rallies have been sold out.
The bears will try to push the price below the strong support near $0.25. If they manage to do so, ADA is likely to fall to the support line of the falling wedge pattern. This level has acted as a strong support several times. Therefore, the bulls will try to aggressively defend it again. On the upside, a break and close above the 20-day EMA will be the first indication of easing selling pressure. It is possible for ADA to move towards the bear trend line later on.
Polygon (MATIC)
The bulls failed to cross the 20-day EMA ($0.82) on Dec. 27. This indicates that the sentiment remains negative and traders are selling in the rallies. MATIC could slide to near support at $0.75.
If the price dips below $0.75, MATIC is likely to drop to the strong support at $0.69. This is an important level to consider. Because, if it is broken, it is possible for MATIC to enter a downtrend. The next support on the downside is at $0.52. If the price rises above $0.75, it will indicate that the bulls are buying on small dips. They will then try to break through the general hurdle at the 20-day EMA and push the price towards $0.97.
Polkadot (DOT)
In a strong downtrend, relief rallies are usually shallow and do not last long. That’s what happened with DOT, which declined on Dec. 27 and dropped below the $4.37 support on Dec. 28.
Both moving averages are bearish. Also, the RSI is close to the oversold zone. This shows that the bears are sitting tight in the driver’s seat. If the price stays below $4.37, a drop to the next support, $4, is possible for DOT. The first sign of strength will be a break and close above the 20-day EMA ($4.73). The DOT is likely to rise to the 50-day SMA ($5.21) later. It will signal a trend change once the bulls push the price above the downtrend line.
Litecoin (LTC)
LTC bounced above the moving averages on Dec. However, the bulls failed to sustain the momentum. This indicates that demand is drying up at higher levels.
LTC fell below the moving averages on December 27. Also, the bears are trying to push the price below the uptrend line on Dec. If they do, it is possible for LTC to drop further to $65 and then to $61. On the contrary, if the price rises and rises above the moving averages, it will indicate that the bulls are buying from the lows. The bulls will then try to push the price back to the overhead resistance of $75.
Uniswap (UNI)
The long wick on UNI’s December 27 candlestick indicates that the bears continue to sell in relief rallies near the 20-day EMA ($5.42).
The bears continued the selling pressure on December 28. It is also trying to keep the price below the support line of the triangle. There is strong support near $5. However, if this level collapses, it is possible for UNI to start a downward move towards $4.60. If buyers want to avoid the drop, they will have to push the price above the moving averages quickly. This is likely to trap aggressive bears. This will probably push the UNI towards the resistance line of the triangle.