litecoin

Bitcoin and most major altcoins are trading close to their overhead resistance levels, increasing the likelihood of an upward push.

Bitcoin (BTC) is on track to end the year with a loss of about 65%. This would mark the third negative year for Bitcoin with the other two being 2014 and 2018. In comparison, the S&P 500 has fared much better but that is also down close to 20% in 2022.

Although cryptocurrency prices have seen deep cuts this year, traders have continued to plow money into the space. An online survey conducted by Blockchain.com shows that 41% of the respondents bought crypto this year and 40% plan to purchase crypto in the next year.

However, a sustained recovery in risk-assets may happen only after inflation shows signs of cooling. That would raise expectations of a pivot by the United States Federal Reserve from its aggressive monetary tightening to an expansionary policy.

In the short term, markets may remain volatile as the volumes are likely to remain thin during the holiday season. Could Bitcoin and altcoins start a recovery? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin is trying to cling to the 20-day exponential moving average ($16,955). The bears tried to pull the price lower on Dec. 22 but the long tail on the candlestick shows strong buying on dips.

The bulls will try to clear the overhead hurdle at the moving averages. If they succeed, the BTC/USDT pair could pick up pace and soar to the strong overhead resistance at $18,388. This is an important level to watch because a break and close above it could attract huge buying. The pair could then surge to $21,500.

If bulls fail to push the price above the moving averages, it will suggest a lack of demand at higher levels. The bears will try to make use of this opportunity and pull the pair below $16,256. If they do that, the pair could plummet to the support at $15,476.

ETH/USDT

Ether’s (ETH) bounce off $1,150 is facing strong resistance at the 20-day EMA ($1,230) for the past two days. Sellers tried to pull the price down on Dec. 22 but the long tail on the candlestick shows aggressive buying at lower levels.

The 20-day EMA is flattish and the RSI is just below the midpoint, indicating a balance between buyers and sellers. A break above the 50-day SMA ($1,259) could tilt the near-term advantage in favor of the bulls. The ETH/USDT pair could then climb to $1,352.

Sellers will have to sink the price below the immediate support at $1,150 to gain the upper hand. Such a move would complete a bearish head and shoulders pattern in the near term. The pair could first drop to $1,075 and then plunge to the target objective of $948.

BNB/USDT

BNB (BNB) has been consolidating near the breakdown level of $250 for the past few days. This suggests that bears are protecting this level but a positive sign is that the bulls have not given up much ground.

If the price rises above $255, it could trap several aggressive bears who may then hurry to close their short positions. That may result in a short squeeze, which could push the price to the 50-day SMA ($283) and then to $300.

Instead, if the price turns down from the current level and slides below $236, it will suggest that bears remain in control. Sellers will then try to sink the price below $220 and extend the decline to the psychological support at $200.

XRP/USDT

XRP (XRP) is trying to start a recovery but that could face selling near the breakdown level of $0.37. Both moving averages are sloping down and the RSI is below 40, suggesting that bears have the upper hand.

If the price turns down from the 20-day EMA, the bears will try to pull the XRP/USDT pair below $0.33. If they manage to do that, the pair could drop to the critical support at $0.30, which the bulls will likely try to protect.

Another possibility is that the price turns up from the current level and buyers drive the pair above the overhead resistance at $0.37. If that happens, the pair could rally to $0.41, which may again behave as a major obstacle.

DOGE/USDT

Dogecoin (DOGE) rebounded off the strong support at $0.07 on Dec. 20 indicating that buyers are trying to defend this level with vigor.

The pullback could reach the downtrend line where the bears may mount a strong defense. If the price turns down from this level, it will increase the likelihood of a break below the support at $0.07. If this level cracks, the selling could accelerate and the DOGE/USDT pair could drop to the vital support at $0.05.

Contrary to this assumption, if buyers thrust the price above the 50-day SMA ($0.09), it will suggest strong demand at lower levels. The pair could then rally to $0.11, which may again act as a strong barrier.

ADA/USDT

Sellers tried to sink Cardano (ADA) below the support line of the falling wedge pattern on Dec. 21 and 22 but the bulls defended the level successfully.

Buyers are trying to propel the price to the 20-day EMA ($0.29). This level may act as a major barrier but if bulls overcome it, the ADA/USDT pair could rally to the 50-day SMA ($0.32) and then to the downtrend line.

Contrarily, if the price turns down from the current level, the bears will fancy their chances and attempt to sink the pair below the support line. If they can pull it off, the downtrend could extend to the psychological support at $0.20.

MATIC/USDT

Polygon (MATIC) is attempting to start a relief rally but the bears are in no mood to relent. They are offering a stiff resistance near $0.81 but the long tail on the Dec. 22 candlestick shows that bulls continue to buy the dips.

If buyers push the price above $0.81, the MATIC/USDT pair could rise to the 20-day EMA ($0.84). The downsloping 20-day EMA and the RSI below 41 suggest that bears have a slight edge.

Sellers may again try to stall the relief rally at the 20-day EMA. If the price turns down from this level, a retest of $0.76 is possible. Conversely, if buyers thrust the price above the 20-day EMA, the pair could attempt a rally to the 50-day SMA ($0.90).

Related: Top-five most Googled cryptocurrencies worldwide in 2022

DOT/USDT

Polkadot (DOT) slipped below the $4.40 support on Dec. 22 but the bears could not sustain the lower levels as seen from the long tail on the candlestick. This indicates buying at lower levels.

The bulls will have to sustain their buying and push the price above the 20-day EMA ($4.92) to indicate strength. The DOT/USDT pair could then move up to the 50-day SMA ($5.45) and later attempt a rally to the downtrend line.

On the contrary, if the price turns down and breaks below $4.37, it will suggest that the downtrend remains intact. The pair could then drop to $4. The downsloping moving averages and the RSI near the oversold area suggest that bears are in command.

LTC/USDT

Litecoin’s (LTC) recovery is facing resistance near $67. The failure of the bulls to push the price to the moving averages shows that bears are selling on every minor rally.

The moving averages are on the verge of a bearish crossover and the RSI is in the negative zone, indicating advantage to bears. If the price turns down and breaches the support at $61, the LTC/USDT pair could plummet to $56.

If bulls want to invalidate this negative view, they will have to push and sustain the price above the moving averages. The pair could then attempt a rally to $75 where the bears may again mount a strong resistance.

UNI/USDT

Uniswap (UNI) is trading in a tight range between the support line of the symmetrical triangle and $5.50. This suggests that bulls are buying the dips but have been not able to clear the overhead hurdle at $5.50.

The downsloping moving averages and the RSI in the negative territory indicate an upper hand to the bears. If the price turns down and breaks below the triangle, the UNI/USDT pair could plunge to $4.60.

Alternatively, if the price turns up and breaks above $5.50, the pair could rise to the 50-day SMA ($5.84). This level may again act as a resistance but if bulls push the price above it, the pair could reach the resistance line.

Market data is provided by HitBTC exchange.

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.

Bitcoin and select altcoins are showing signs of a possible recovery in the near term but higher levels may continue to attract sellers.

As the year comes to an end, investors will be keenly watching for a Santa Claus rally on Wall Street as many believe that if the rally does not happen, the next year may either remain flat or turn negative. 

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

The cryptocurrency market has been largely correlated with the S&P 500 in 2022. Unless both markets decouple, the sideways or negative action in the equities markets may not bode well for the cryptocurrency market.

Analysts remain divided on the future price action for Bitcoin (BTC). While some expect a recovery, others anticipate another leg lower. 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 ($16,985) since Dec. 16, the bears have not been able to capitalize on this situation. This suggests that lower levels are attracting buyers.

The BTC/USDT pair saw slight gains on Dec. 20 and reached the 20-day EMA. This is an important level for the bears to defend in the short term because a break above it could set the stage for a possible rally to $17,622 and then to $18,387.

Alternatively, if the price turns down from the moving averages and breaks below $16,256, the selling may accelerate and the pair could dive to $16,000 and thereafter retest the pivotal level of $15,476.

The flattish 20-day EMA and the relative strength index (RSI) near 47 do not give a clear advantage either to the bulls or the bears. That could lead to a random volatile price action in the near term as both the buyers and sellers attempt to assert their supremacy.

ETH/USDT

Ether (ETH) rebounded off the nearby support at $1,150 on Dec. 20, suggesting that lower levels are attracting buyers. The relief rally has reached the 20-day EMA ($1,233) where the bears may mount a strong defense.

If the price turns down from the 20-day EMA, the bears will make one more attempt to pull the ETH/USDT pair below the support at $1,150. If they manage to do that, it will complete a head and shoulders pattern in the near term. This setup has a target objective of $948.

Instead, if buyers catapult the price above the moving averages, the pair may rally to $1,352. This level may again act as a major hurdle but if crossed, the rally could reach the downtrend line. The bears are expected to protect this level with all their might because a break above it could signal a potential trend change.

BNB/USDT

BNB (BNB) bounced off $220 on Dec. 17 but the pullback is facing strong selling at the breakdown level of $250. This suggests that bears are trying to flip the level into resistance.

The downsloping moving averages and the RSI near 40 indicate that bears are in command. If the price turns down and breaks below $236, the BNB/USDT pair could retest the support at $220. A break below this level could sink the pair to $200.

This negative view could invalidate in the near term if buyers force the price above the 20-day EMA ($265). The pair could then extend its relief rally to the 50-day SMA ($286) and later to $318.

XRP/USDT

XRP (XRP) tumbled below the $0.37 support on Dec. 16, indicating that bears have gained the upper hand in the near term. The price could oscillate in a wide range between $0.30 and $0.41 for the next few days.

Any relief rally is likely to face stiff resistance at the moving averages and again at $0.41. If bulls want to gain the upper hand, they will have to catapult the price above $0.41. That could start a strong rally to $0.51.

On the downside, the crucial support to keep an eye on is $0.30. If this level cracks, the XRP/USDT pair could start the next leg down. The pair could then extend its decline to $0.25.

DOGE/USDT

Dogecoin (DOGE) reached the important level of $0.07 on Dec. 19 where the bulls stepped in and are trying to arrest the decline. Buyers will try to push the price to the downtrend line while the bears are likely to have other plans.

The downsloping moving averages and the RSI near the oversold territory indicate that the path of least resistance is to the downside. A weak bounce off $0.07 will increase the possibility of a break below the support. If that happens, the DOGE/USDT pair could plummet to the next major support at $0.05.

On the upside, the bulls will have to propel and sustain the price above the downtrend line to attract more buyers. The pair could then rise to the overhead resistance at $0.11.

ADA/USDT

Cardano (ADA) plunged below $0.29 on Dec. 16 and that aggravated the selling, pulling the price below the support line. The sharp fall on the day also invalidated the positive divergence developing on the RSI.

The ADA/USDT pair continued to skid and reached the strong support at $0.25. The oversold level on the RSI suggests that a recovery or a consolidation may be around the corner.

However, sellers are unlikely to give up their advantage easily and may pose a strong challenge at $0.27 and again at $0.29. If the price turns down from this overhead zone, the pair may again drop to $0.25.

The recovery may pick up pace after the price breaks above the 20-day EMA ($0.29) because that may lure short-term bears to book profits.

MATIC/USDT

Polygon (MATIC) remained stuck inside a large range between $1.05 and $0.69 for the past few days. The repeated failure of the buyers to propel the price above $0.95 may have tempted short-term traders to book profits.

That started the downward journey in the MATIC/USDT pair toward the strong support of $0.69. Buyers are likely to defend this level aggressively because a break below it could intensify selling and pull the price to $0.52.

On the upside, the first hurdle could be at the 20-day EMA ($0.85). If the price turns down from this level, the likelihood of a break below $0.69 increases. On the other hand, if bulls drive the price above the 20-day EMA, the pair could move up to $0.95.

Related: Pantera CEO on the FTX collapse: Blockchain didn’t fail

DOT/USDT

Polkadot (DOT) remains in a strong downtrend with bears selling every minor rally. The failure to push and sustain the price above the 20-day EMA ($5.01) attracted heavy selling on Dec. 16, which resumed the downtrend.

The downsloping moving averages and the RSI near the oversold territory indicate that bears remain in control. If the price breaks below $4.40, the next stop could be $4.

If bulls want to salvage the situation, they will have to quickly start a recovery and push the price above the 20-day EMA. Such a move will suggest accumulation at lower levels. The DOT/USDT pair may then rally to the 50-day SMA ($5.52). Sellers are likely to protect the zone between the moving averages with vigor.

LTC/USDT

Litecoin (LTC) dropped below the breakout level of $75 on Dec. 15, which may have triggered several stop losses. The selling continued on Dec. 16 and the price slipped below the 50-day SMA ($69).

Buyers are trying to start a recovery but they may run into strong selling at the moving averages. If the price turns down from this overhead resistance, the bears will try to increase their advantage by yanking the LTC/USDT pair below $61. If this support cracks, the pair could drop to $52.

The first sign of strength will be a break and close above the 20-day EMA ($70). That could open the doors for a possible retest of $75. This remains the key level to watch out for on the upside because a break above it will suggest the start of a new up-move.

UNI/USDT

Uniswap (UNI) rebounded off the support line of the symmetrical triangle on Dec. 20, indicating that bulls continue to buy the dip to this level.

The recovery could first reach $5.50 and then to the 20-day EMA ($5.65). The bears are likely to sell on rallies to the 20-day EMA. If the price turns down from this level, the sellers will again try to sink the UNI/USDT pair below the triangle. If they succeed, the pair could start a new downtrend to $4.60.

Contrarily, if buyers thrust the price above the 20-day EMA, the pair could pick up momentum and rise toward the resistance line. The bulls will have to clear this obstacle to signal the start of a new up-move.

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.

Market data is provided by HitBTC exchange.