Bitcoin (BTC), which is trying to surpass the psychologically dangerous level of $50,000, and end the year on a high note, is trying to do so. The sharp rise in Bitcoin has seen a sharp increase in the Crypto Fear & Greed Index’s value from 27 to 45 in a single day. This indicates that sentiment is improving.
Flori Marquez, BlockFi’s co-founder, stated in a recent interview, that increased crypto prices, new talent and regulatory clarity could increase crypto adoption in 2022. Marquez stated that most Blockfi clients-when they get a BTC reward they aren’t selling it for cash.
Everyday cryptocurrency market performance. Source: Coin360
Another positive announcement that could increase crypto adoption is Opera’s integration with Polygon (MATIC). This integration is expected to be live in the first quarter 2022. Opera users will have access to Polygon’s ecosystem on their Android devices and on their other devices.
Could Bitcoin and other altcoins see a significant increase in their recovery over the past few days? Let’s look at the charts for the top 10 cryptocurrencies to see if we can find out.
Bitcoin fell below the 200-day moving average ($47.259) on December 17. However, the bears couldn’t capitalize on their advantage and prolong the decline. This indicates that selling has slowed down at lower levels.
Daily chart of BTC/USDT Source: TradingView
Although the bulls lifted the price above the 200-day SMA Dec. 21, the recovery is now facing resistance at the 20 day exponential moving average ($49.517). This shows that the bears are not giving up yet and continue to sell on rallies.
If the price falls below its current level, bears will attempt to lower it below the 200-day SMA. This would allow the bears to extend their decline to the strong support zone of $42,000 to $39,000.
However, if bulls push the price higher than the 20-day EMA, then the BTC/USDT exchange could reach $52,000. Although this level is a barrier, bulls could push the price higher than it to create the next major obstacle at $60,000.
The bulls are trying to push Ether (ETH), above the descending channel, and the 20-day EMA ($4,055). It will be a sign that the corrective phase is over if they succeed.
Daily chart of ETH/USDT Source: TradingView
The buyers will attempt to push the price up to $4,488, and then to the record $4,868. The resumption or continuation of the uptrend will be indicated by a break above and close below this resistance. The pair could rally to $5.859.
This assumption is incorrect. If the price drops from its current level, it will indicate that sentiment remains negative. The bears will attempt to lower the price to $3,643.73. The ETH/USDT pair may drop to the 200-day SMA ($3,302) if they succeed.
Binance Coin (BNB), which has been holding the $500 psychological support over the last few days, indicates that buyers are aggressively defending the level.
Daily chart BNB/USDT TradingView
The BNB/USDT currency pair could rise to the downtrendline, where bears may mount another strong resistance. If the price falls below this resistance, it will indicate that traders are buying rallies and the sentiment is still negative.
A break of $500 or close to it could trigger the next leg, which could lead to the 200-day SMA ($437).
If bulls push the price higher than the downtrend line, it could indicate that the correction is over. The price could rise to $617, and then to overhead resistance at $669.30.
Solana (SOL), has traded close to the 20 day EMA ($183) over the past few days. This suggests that selling pressure may be decreasing.
Daily chart of SOL/USDT Source: TradingView
Bulls are making a comeback, as evidenced by the flattening 20 day EMA and relative strength index (RSI), just below the midpoint. If the price breaks above the 20-day EMA, it could lead to a stronger recovery up to $204.10 and eventually to $240.
If the price drops below $167 and the price is lower than the current level, this will indicate that bears have taken in the demand. This could open the door to a $148.04 drop. The SOL/USDT pair could fall to the 200-day SMA ($121) if this support breaks.
The bears’ inability to pull Cardano (ADA), below $1.18, has led to a recovery that has reached EMA ($1.35).
Daily chart ADA/USDT Source: TradingView
The sellers will attempt to lower the ADA/USDT price below $1.18 if the price drops from its current level. The next stop for them could be $1. This support has been maintained for many months and the bulls will likely defend it vigorously.
If bulls push the price higher than the 20-day EMA, this will signal a sustained recovery. If bulls push the price higher than that, it could be a strong overhead resistance of $1.87.
XRP closed above the 20 day EMA ($0.87) Dec. 20, suggesting that selling pressure is decreasing. The bulls are trying to push the price higher than the psychological level of $1.
Daily chart of XRP/USDT Source: TradingView
The 20-day EMA is slowly rising and the RSI has risen into positive territory. This indicates that bulls are slightly ahead. If the close is above $1, it could lead to a rally to $1.20 or $1.41.
If the price drops below $1, the XRP/USDT exchange rate could fall to the 20-day EMA. This level is likely to show that sentiment has improved and traders are buying dips. This will increase the likelihood of a break above $1. If bears drop below $0.85, however, the pair could fall to $0.75.
Terra’s LUNA token fell and closed above the overhead resistance of $78.29 Dec. 20, indicating a resumption in the uptrend.
Daily chart of LUNA/USDT Source: TradingView
Bullish momentum continued today and the LUNA/USDT pairing soared to $98.20. The sharp rally over the past few days has pushed RSI into an overbought zone. The pair is now close to the psychological mark of $100. In the coming days, this may lead to a slight correction or consolidation.
If the price drops from its current level, but bounces off $78.29 it will indicate that traders are still buying dips and the sentiment is bullish. The buyers will attempt to reestablish the uptrend with $124.65 as the next objective.
To signal a change in the short term trend, the bears must pull the price below its 20-day EMA ($69.75).
Related: Did you miss out on the best crypto stocks for 2021? Data shows that it cost just $80 to buy Bitcoin and Ethereum.
Avalanche (AVAX), bounced off the 20 day EMA ($104), on Dec. 20, suggesting that bulls are buying dips. The up-move climbed above the $119.69 Fibonacci Retracement Level at 61.8% on Dec. 21, which indicates that bulls have returned to the game.
Daily chart of AVAX/USDT Source: TradingView
The $78.60% Fibonacci Retracement Level at $131.70 is showing minor resistance. If cleared, it could lead to a retest at the all-time high of $147. To signal the beginning of the next leg in the uptrend, the bulls must push the price higher than this level.
Bulls are the winners, as evidenced by the RSI in positive zone and the upsloping 20 day EMA. If the price falls below the 20-day EMA, this positive view will be invalidated. This could push the price up to $98. The next stop, if this level holds, could be $75.50.
Polkadot has bounced from the strong support zone of $25 to $22.66, suggesting that bulls are vigorously defending this area.
Daily chart of DOT/USDT Source: TradingView
The 20-day EMA ($28.21), where the bears will likely mount a strong defense, could be the first step in the recovery. If the price drops below this level, bears will attempt to lower it.
The DOT/USDT pairing could fall to $16.81 if that happens. If the price crosses the 200-day SMA ($28.84), this will indicate that the downtrend has weakened. The price could rally first to $31.49, and then to $39.35.
Dogecoin (DOGE), which bounced from $0.15 support on Dec. 20, indicated that buyers continue to defend this level with all of their might.
Daily chart of DOGE/USDT Source: TradingView
The 20-day EMA ($0.17) has been reached by the DOGE/USDT pair. This is acting as a strong support. The price could fall from this level and keep the pair between $0.15 and the 20-day EMA for a few more days.
If the tight trading range is resolved to the downside, the pair may slide to $0.13. A break below that level could lead to a fall to $0.10.
The pair could reach $0.19 if bulls continue to drive the price higher than the 20-day EMA. Although this level could act as resistance, if it is crossed, the pair may begin a strong recovery towards $0.22.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.