Analyzing Cryptocurrency Market: Bitcoin's Sluggish Recovery and Other Digital Assets
Summary:
The article provides an analysis of the current state of Bitcoin and other cryptocurrencies. It discusses the recent dip in Bitcoin's value and the ensuing sluggish recovery, indicating a strong selling sentiment. The article further addresses performance of other cryptocurrencies including Ether, BNB, XRP, Solana, Cardano, Dogecoin, Avalanche, Polkadot, and Polygon - detailing their current price analyses. It also includes comments by cryptocurrency experts and stresses that conducting personal research before making any investment or trading decision is important as it involves risks.
Bitcoin (BTC) experienced a sluggish recovery following its dip on Dec. 11, indicating a strong selling sentiment during recovery periods. Short-term Bitcoin holders (STHs) - those who have held onto 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 according to Glassnode data. The last instance of such a significant single-day sell-off was back in June 2022, indicating that speculators are keen on unloading their Bitcoin assets quickly.
Despite this, there is market interest at lower levels. Material Indicators, a trading resource, alluded to potential "institutional sized" bids but was uncertain whether it was a case of accumulation or short-term trading opportunities with dips attracting purchases and rallies being sold.
The daily performance of the cryptocurrency market is available at Coin360. Marcel Pechman, a contributor at Cointelegraph, has reviewed derivatives data and believes that despite recent correction, Bitcoin remains on course to reach $50,000. He notes that the likelihood of "cascading liquidations" is slim as the market correction seems to be predominantly driven by the spot market.
The key support levels on Bitcoin that are likely to withstand a downfall, or if alternative cryptocurrencies could start a rebound rally, are yet to be determined. Therefore, it's crucial to examine the charts of the top ten cryptocurrencies.
Bitcoin's price analysis reveals that while it's managing to stay above the 20-day exponential moving average ($40,870), there hasn't been a robust recovery rally suggesting caution towards buying at elevated levels. The relative strength index (RSI) suggests a reduced upbeat momentum, putting the 20-day EMA at risk. If this threshold is breached, the BTC/USDT pair could fall to the 50-day simple moving average ($37, . The bulls, however, may have other plans and attempt to drive the price to an overhead resistance of $44,700. This price point is likely to witness a heated contest between bulls and bears, but if buyers prevail, the pair could potentially reach $48,000.
Ether price analysis indicates a mild bounce from the strong support at $2,200 on Dec. 12, implying limited demand at lower levels. If bears manage to maintain lower levels, the selling could intensify and the ETH/USDT pair could fall to the 50-day SMA ($2,029). On the contrary, if the price rises above $2,250, lower levels may continue to lure buyers and the pair may attempt to retest the 52-week high at 2,403. A rally beyond this resistance could trigger the next uptrend leg to $3,000.
In BNB's price analysis, an inverse head-and-shoulders pattern has emerged, which will complete once it breaks and closes above the neckline at $275. The 20-day EMA ($238) has begun to rise while the RSI is in positive territory, indicating the bulls are in control. The price could hit the neckline, where bears are most likely to retaliate with vigor. If bulls manage to break this barrier, the BNB/USDT pair could start a new uptrend toward the pattern target of $333.
The bulls attempted to halt XRP’s (XRP) decline at the 50-day SMA ($0.62) on Dec. 11 but were unsuccessful in elevating the price above the 20-day EMA ($0.63). The selling resumed on Dec. 13, causing the price to fall below the 50-day SMA. Sellers will aim to lower the price to the crucial support level at $0.56, where a robust buying response by the bulls is expected. The 20-day EMA has leveled out and the RSI is just below the midpoint, suggesting a possible range-bound movement in the short term. Bulls will regain control once they elevate the price above $0.67. The XRP/USDT pair could later ascend to the overhead resistance at $0.74.
A bullish view will be negated if the price declines and breaks below the 20-day EMA. In such a situation, the pair could drop to the 50-day SMA ($0.08) and then to $0.07.
Polygon’s (MATIC) rise above $0.89 on Dec. 8 was temporary as bears drove the price back below $0.89 on Dec. 11. Buyers made another attempt to elevate the price above $0.89 on Dec. 12, but bears successfully thwarted their effort. Now sellers are looking to fortify their stance by drawing the price below the 20-day EMA ($0.83). If they succeed, then this may cause the start of a steep correction towards $0.70. However, this bearish view will be overturned in the short term if the price sharply turns around from the current level and ascends above $0.89 - a sign of strong buying at lower levels. The pair may then rise to $0.95 and thereafter to $1. As a reminder, it's important to conduct your own research prior to making any investment or trading decision as doing so involves risks. This article does not offer investment advice or recommendations.
Published At
12/13/2023 9:23:48 PM
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