Bitcoin's Resilience Fuels Optimism, Sparks Altcoin Interest Amid Minor Pullbacks
Summary:
Bitcoin experienced a minor pullback this week but quickly rallied to $44,000, showing that buyers are not hastening to sell. Data indicates that Bitcoin investors from December 2020 to December 2021 are holding on to their coins, anticipation more future gains. In addition, the recent Bitcoin surge has sparked interest in altcoins like Ether (ETH), Cardano (ADA), and Solana (SOL). Notably, Bitcoin's price hitting $44,500 sparked profit-taking among traders, but rebounds are expected. In the case of other cryptocurrencies, the ETH/USDT pair achieved a bullish ascending triangle pattern after breaking out from $2200, BNB/USDT aims to beat the $239 barrier, and Cardano has been performing robustly since closing above the $0.40 resistance. Furthermore, Dogecoin and Avalance both have demonstrated strong bullish trends.
Bitcoin's (BTC) value witnessed a minor drawback this week, though a surge to $44,000 in a single day demonstrates that investors are not rushing to sell off their stakes. Metrics from the popular HODL Waves tool reveal that Bitcoin buyers from December 2020 to December 2021 are holding steady on their investments. They are not selling even in a strong market, with hopes of an even brighter future. VanEck, an asset management company, expects Bitcoin to reach a new all-time peak by 2024, due to shifting political events and regulatory attitudes in a post-U.S. Presidential election scenario.
As per Coin360 data, Bitcoin's recent rally has generated interest in altcoins like Ether (ETH), Cardano (ADA), and Solana (SOL). Market research firm Santiment is bullish about Bitcoin's future and suggests it could surge to $50,000 if the uncertainty, doubt, and fear surrounding the coin increases. It fuels a pertinent question: Will Bitcoin find more buyers at lower levels, propelling it to reach $48,000, or will the focus shift to altcoins? To determine this, we need to closely observe the performance of the top ten cryptocurrencies.
After hitting $44,500 on December 5th, Bitcoin price took a downward turn, indicating profit-taking by short-term traders. However, during a strong uptrend, the pullbacks do not typically last long since investors seize these opportunities to buy. If Bitcoin's price rebounds from its current level and eclipses $44,500, it could pave the way for a journey towards $48,000. Yet, this level is probably going to face stiff resistance from sellers.
The bears attempted to drag Ether (ETH) below the breakout level of $2200 on December 6, only to be countered by the bulls. This suggests that the investors are trying to convert $2200 into support. After breaking out of $2200, the ETH/USDT pair accomplished a bullish ascending triangle pattern, which has a target of $3400. But the journey to $3400 won't be smooth and straightforward, with sellers poised to resist near $2500 and again at $3000.
BNB (BNB) is currently stuck in a range of $223 to $239, indicating an equilibrium between demand and supply. The bulls have elevated the price above the 20-day EMA ($233) and will be aiming to beat the $239 barrier. If they do, the BNB/USDT pair could gain momentum and aim for the overhead resistance at $265.
XRP (XRP) rebounded from the 20-day EMA ($0.62) on December 6, which implies that lower levels are getting bought. The next endeavor for bulls will be to thrust the price above $0.67. However, sellers are anticipated to mount a stern resistance at this level.
Solana picked up on December 7 and exceeded the 52-week high at $68.20, signaling the continuation of an uptrend. This upward movement negated the bearish H&S pattern, which is a positive sign. If it surpasses a smaller hurdle at $78, the SOL/USDT pair might rise to $100.
Cardano has been performing robustly since December 4, when it closed above the $0.40 resistance. It further expanded to $0.46 on December 7 and even higher to $0.52 on December 8. The following level to focus on the upside is $0.60.
Dogecoin (DOGE) almost hit $0.11 on December 6, but the bulls were unable to maintain this level, as evidenced by the long wick on the candlestick. A minor upside for bulls is that they haven't allowed the price to stay below $0.10. Bulls will once again attempt to launch the price above the $0.11 resistance.
Avalanche (AVAX) has been meeting resistance near $28, but bulls are not backing down to the bears. They will look to resume the uptrend and propel the price to the overhead resistance at $31. This level could witness aggressive selling by the bears.
Chainlink (LINK) found support at the 20-day EMA ($15.04) on December 7, showing that traders are buying on dips. The bulls continued with their buying spree on the next day, pushing the price above $16.60. If this can be maintained, it could lead to an uptrend resumption.
Polygon (MATIC) has been oscillating between $0.89 and $0.49 for several days. Bulls are striving to propel the price over this resistance to kickstart a new uptrend.
Published At
12/8/2023 9:49:28 PM
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