litecoin

Bitcoin and most major altcoins remain stuck inside a range as traders keep a close eye on next week’s macroeconomic events.

The United States equities markets are headed for a down week as market participants remain cautious ahead of next week's key consumer price index data for November.

The CPI report will be followed by the Federal Reserve’s Federal Open Market Committee meeting on Dec. 13-14 where the central bank is expected to hike rates by 50 basis points, according to the FedWatch Tool.

The outcome of the events next week could increase the volatility in Bitcoin (BTC) and result in a trending move.

After a terrible year that saw some high-profile cryptocurrency companies go bust, the bulls will expect 2022 to end on a strong note. Bears will also try to maintain their stronghold and extend the decline in the next year.

What is the path of least resistance in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

The bulls successfully held the $16,787 support on Dec. 7, indicating strong demand at lower levels. Buyers propelled Bitcoin back above the 20-day exponential moving average ($17,004) on Dec. 8.

The flat 20-day EMA and the relative strength index (RSI) near the midpoint suggest a possible range-bound action in the near term. Usually, tight range trading is followed by a range expansion, which leads to a trending move.

At times, the first breakout tends to be a fake move, hence traders could wait for a confirmation before jumping on to take the trade.

If the price breaks above the resistance zone between $17,622 and the 50-day simple moving average ($18,046), the BTC/USDT pair could signal a potential trend change. The pair could then attempt a rally to $20,000 and later to $21,500.

Conversely, if the price breaks below $16,787, the bears will try to pull the pair to the pivotal support at $15,476.

ETH/USDT

Ether (ETH) broke below the 20-day EMA ($1,254) on Dec. 7 but the bears could not sustain the lower levels. The bulls bought the dip and pushed the price back above the 20-day EMA on Dec. 8.

Buyers will once again strive to thrust the price above the overhead resistance at the 50-day SMA ($1,331). If they can pull it off, the ETH/USDT pair could surge toward the resistance line of the descending channel.

On the contrary, if the price turns down from the 50-day SMA, it could keep the pair stuck inside the range for a few days. The flat moving averages and the RSI just above the midpoint also indicate a consolidation in the short term.

The advantage could tilt in favor of the bears if the price turns down and breaks below $1,212.

BNB/USDT

BNB (BNB) closed below the $285 support on Dec. 7 but the bears could not capitalize on this opportunity. The bulls purchased the dip and have pushed the price to the 20-day EMA ($291).

The flattening moving averages and the RSI above 48 suggest a balance between supply and demand. This could result in a volatile range-bound action in the near term but the boundaries of the range are not yet defined.

If the price turns down from the moving averages, the bears will try to yank the BNB/USDT pair below $281. If that happens, the selling could accelerate and the pair may slide to $275 and later to the strong support at $250. If bulls want to gain the upper hand, they will have to push and sustain the price above $300.

XRP/USDT

XRP (XRP) turned up from the strong support of $0.37 on Dec. 7, indicating that bulls are buying the dips. This is the second occasion when bulls have defended this level, hence $0.37 becomes an important level to keep an eye on.

The 20-day EMA is flattish and the RSI is near the midpoint, implying that the XRP/USDT pair could remain stuck between $0.37 and $0.41 for some time.

If buyers drive the price above the 20-day EMA, the pair could rally to $0.41. This level may act as a major barrier for the bulls but if they manage to overcome it, the pair could pick up momentum and rally toward $0.51.

If the price turns down from the 20-day EMA, the bears will again try to sink the pair below $0.37 and strengthen their hold. If they manage to do that, the pair could decline to $0.34.

ADA/USDT

Cardano (ADA) is consolidating in a downtrend and the positive divergence on the RSI suggests that the selling pressure could be reducing.

Buyers have an opportunity to start a recovery by pushing the price above the 20-day EMA ($0.32). If they do that, the ADA/USDT pair could attempt a rally to the downtrend line. The 50-day SMA ($0.35) may offer minor resistance but it is likely to be crossed.

If bulls fail to clear the 20-day EMA quickly, the possibility of a break below the critical support of $0.29 increases. That could signal the resumption of the downtrend and the pair may plummet to $0.27.

DOGE/USDT

The bulls bought the dip to the 50-day SMA ($0.09) on Dec. 7 but they are facing resistance at the psychological level of $0.10. This indicates that the bears have not yet given up and they continue to sell the rallies in Dogecoin (DOGE).

If sellers pull and sustain the price below the 50-day SMA, the DOGE/USDT pair risks a drop to $0.08 and then to the vital support at $0.07.

Contrarily, if buyers sustain the price above the 50-day SMA, the pair could consolidate between $0.09 and $0.11 for a few days. The flattening 20-day EMA ($0.10) and the RSI just above the midpoint, also hint at a range-bound action in the near term. The bullish momentum could pick up above $0.11.

MATIC/USDT

Polygon (MATIC) slipped below the 20-day EMA ($0.90) on Dec. 7 but the long tail on the day’s candlestick shows that lower levels are attracting buyers.

The bulls will try to keep up the buying pressure and push the price above the overhead resistance at $0.97. That could clear the path for a possible rally to $1.05 where the bears may again mount a strong defense.

Alternatively, if the price turns down from the current level or the overhead resistance, it will suggest that bears are active at higher levels. The next break below the 20-day EMA may pull the price to the uptrend line.

Related: Investors chase Web3 as blockchain industry builds despite bear market

DOT/USDT

Polkadot (DOT) took support at $5.24 on Dec. 7, indicating that the bulls are attempting to form a higher low in the near term but the bears continue to defend the 20-day EMA ($5.48) with vigor.

If bears sink the price below the uptrend line, the Nov. 22 low of $5 could be retested. This is an important level for the bulls to defend because if they fail, the DOT/USDT pair could resume the downtrend. The pair could then slump to the next support at $4.32.

The first resistance to watch on the upside is the 20-day EMA. A close above this level could indicate that the bearish momentum could be weakening. The pair may then rise to the 50-day SMA ($5.86) and thereafter to $6.18.

LTC/USDT

Litecoin (LTC) bounced off the 20-day EMA ($74) on Dec. 8, indicating that the sentiment remains positive and traders are viewing the dips as a buying opportunity.

However, the negative divergence on the RSI suggests that the bullish momentum could be weakening. The important support to watch on the downside is the 20-day EMA and then $70. If this zone breaks down, it could lead to long liquidation and the LTC/USDT pair may slide to the 50-day SMA ($65).

If the price sustains above the 20-day EMA, the pair could consolidate between $75 and $85 for some time. A break above $85 could clear the path for a possible rally to $104.

UNI/USDT

Uniswap (UNI) remains inside a symmetrical triangle pattern, indicating indecision among the bulls and the bears. Buyers purchased the dip to the 20-day EMA ($5.97) on Dec. 8 but are struggling to sustain the higher levels.

The price action inside a triangle is usually random and volatile. If the 20-day EMA support cracks, the UNI/USDT pair could gradually decline to the support line of the triangle. This level could attract buyers who will try to protect the support line.

The near-term advantage could shift in favor of the bulls if they propel the price above $6.55. The pair could then climb to the resistance line of the triangle. Buyers will have to overcome this hurdle to signal the start of a new uptrend.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.

The current weakness in BTC and major altcoins shows that investor sentiment remains negative and that bears are active at higher levels.

The FTX crisis kept Bitcoin’s (BTC) price under pressure in November, but data from Bitstamp exchange shows institutional investors may have viewed the dip as a buying opportunity. The exchange told Cointelegraph that compared to October, its revenue from institutions increased by 34% in November.

In another positive sign, Goldman Sachs executive Mathew McDermott told Reuters that the bank was doing some due diligence on crypto companies since they were “priced more sensibly” after the FTX crash.

ARK Invest said in the latest edition of its monthly “The Bitcoin Monthly" newsletter, that the FTX implosion “could be the most damaging event in crypto history,” but added that decentralized blockchains were “as strong as ever.”

Could lower levels attract buyers in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to spot the levels where buyers may step in.

BTC/USDT

After trading near the 20-day exponential moving average ($16,966) for the past few days, Bitcoin is threatening to dip below the immediate support at $16,787.

If that happens, the short-term advantage could tilt in favor of the bears and the BTC/USDT pair may drop to $16,000. Such a move will suggest that the pair could remain stuck between $15,476 and $17,622 for a few more days. The longer the time spent inside the range, the stronger will be the breakout from it.

On the upside, bulls will have to push and sustain the price above the 50-day simple moving average ($18,122) to gain the upper hand. The pair could then pick up momentum and rally to $20,000.

ETH/USDT

After trading between the moving averages for the past few days, Ether (ETH) broke below the 20-day EMA ($1,250) on Dec. 7. This suggests that the bears have overpowered the bulls.

If the price sustains below the 20-day EMA, the ETH/USDT pair could dive to $1,151 and then to the important support at $1,073.

On the contrary, if the price turns up quickly and climbs back above the 20-day EMA, it will suggest strong buying on dips. That could increase the likelihood of a break above the 50-day SMA ($1,331). Above this level, there is no significant resistance until the pair reaches the downtrend line of the descending channel.

BNB/USDT

The bulls tried to push BNB (BNB) above the overhead resistance at $300 on Dec. 5 but the bears held their ground. The sellers strengthened their position on Dec. 7 by pulling the price below the immediate support at $285.

If the price sustains below $285, the BNB/USDT pair could slump to $275. This level may act as a minor support but if it breaks down, the selling could pick up and the pair may plunge to the crucial support at $250.

If bulls want to prevent the fall, they will have to push and sustain the price above $300. That could trap the aggressive bears on the wrong foot and push the price toward the overhead resistance at $338. This level may again witness a tough battle between the bulls and the bears.

XRP/USDT

The bears successfully defended the 20-day EMA ($0.39) in the past few days and pulled XRP (XRP) below the uptrend line on Dec. 7. This invalidates the developing ascending triangle pattern.

Buyers will try to salvage the situation by defending the strong support at $0.37. If the price rebounds off this level and rises above the 20-day EMA, the XRP/USDT pair may consolidate between $0.37 and $0.41 for some time. A break and close above $0.41 will suggest the start of a new up-move.

The bears are likely to have other plans. They will try to break the support at $0.37 and pull the price to $0.34. That could keep the pair range-bound between $0.30 and $0.41 for a few more days.

ADA/USDT

Cardano (ADA) failed to sustain above the 20-day EMA ($0.32) on Dec. 5 which may have tempted short-term buyers to close their longs and the bears to establish fresh short positions.

The sellers will try to pull the price below the crucial support at $0.29 but they may face strong resistance from the bulls because if the level gives way, the ADA/USDT pair could signal the resumption of the downtrend.

Although the trend is down, the relative strength index (RSI) is maintaining its bullish divergence. This suggests that lower levels may attract buyers. The first sign of sustainable recovery could be on a break and close above $0.33. The pair could then rise to the downtrend line.

DOGE/USDT

The long wick on Dogecoin’s (DOGE) Dec. 5 candlestick shows that bears are defending the 50% Fibonacci retracement level at $0.11.

The DOGE/USDT pair turned down and broke below the 20-day EMA ($0.09) on Dec. 7 but a minor positive is that the bulls are buying the dips to the 50-day SMA ($0.09). If the price rebounds off the current level, the pair could again rise to $0.11.

The RSI has dropped close to the center which suggests that the bullish momentum could be waning. The bears may try to tug the price below the 50-day SMA and gain the upper hand. If they succeed, the pair could gradually slip toward $0.07.

MATIC/USDT

Buyers tried to thrust Polygon (MATIC) above $0.95 on Dec. 5 but the bears vigorously defended the level. The price turned down and broke below the 20-day EMA ($0.90) on Dec. 7. This indicates that efforts by the bulls to flip the 20-day EMA into support have failed.

The bears will try to build upon this opportunity and drag the price to the uptrend line. This is an important level to keep an eye on as the bulls have successfully defended it on three previous occasions. If this support collapses, the MATIC/USDT pair could slide to the crucial support at $0.69.

This negative view will invalidate in the near term if the price turns up and breaks above the overhead resistance at $0.97. That could clear the path for a possible rally to $1.05.

Related: Why is Bitcoin price down today?

DOT/USDT

Polkadot (DOT) repeatedly broke above the 20-day EMA ($5.50) from Dec. 2 to 5 but the bulls could not build upon this strength. This shows that demand dries up at higher levels.

The bears will try to resume the downtrend by pulling the price below the strong support at $5. If they do that, the DOT/USDT pair could plummet to $4.32.

Another possibility is that the price rebounds off $5. That will indicate strong buying at lower levels. The bulls will then try to drive the price above $5.73. If they can pull it off, it could signal a double bottom pattern. The pair could then rise to $6.18 and later to the pattern target of $6.46, which is near the downtrend line.

LTC/USDT

Litecoin (LTC) broke above the $84 resistance on Dec. 5 but the long wick on the day’s candlestick shows selling at higher levels. This may have tempted short-term traders to book profits, which has pulled the price to the breakout level of $75.

The moving averages are sloping up but the RSI has formed a bearish divergence, indicating that the buying pressure may be reducing. A break and close below the 20-day EMA ($74) could enhance the prospects of a drop to the 50-day SMA ($64).

Contrarily, if the price rebounds off the 20-day EMA ($74), it will suggest that the trend remains positive and traders are buying the dips. The bulls will then make one more attempt to clear the overhead hurdle at $85 and push the LTC/USDT pair toward $104.

UNI/USDT

Uniswap (UNI) climbed above the 50-day SMA ($6.16) on Dec. 2 but the bulls could not sustain the buying pressure and push the price to the resistance line of the symmetrical triangle pattern.

The price turned down on Dec. 7 and the bears are trying to sink the price back below the 20-day EMA ($5.92). If this level fails to hold, the selling momentum could pick up and the UNI/USDT pair could decline to the support line of the triangle.

Alternatively, if the price turns up and breaks above $6.55, it will tilt the short-term advantage in favor of the buyers. The pair could then rise to the resistance line where the bulls may again encounter strong selling by the bears. The next trending move could begin on a break above or below the triangle.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.