Bitcoin (BTC), which had been above $50,000 on Christmas Day, was under selling pressure on December 26. The possible drop in Bitcoin’s value could be due to an increase in Binance inflows. Material Scientist, a data analysis account, suggested that Binance’s inflows could have been caused by “a new player.”
While Bitcoin may miss PlanB’s December floor model projection of $135,000, the inventor of the stock-toflow price model is still bullish. He stated that Bitcoin’s current price of $51,000 is within the one standard deviation of his model. This keeps the $135,000 forecast for the halving cycle at play.
Daily view of crypto market data. Source:Coin360
Many asset managers have added Bitcoin into their portfolios in 2021, but Lord Hammond, the ex-Chancellor of the United Kingdom, warned retail investors to be “extremely careful” when investing in cryptocurrency. He stated that “it’s almost certain not suitable for retail investors in a main investment category.”
Let’s look at the charts of the top five cryptocurrencies that could lead to a recovery in crypto sector over the next few days.
Bitcoin broke above the $20-day exponential moving mean ($49,832) Dec. 23, but recovery was halted at the 38.2% Fibonacci level at $52,314. This shows that bears are not giving up on their rallies and have not given up.
Daily chart of BTC/USDT Source: TradingView
On Dec. 24, the BTC/USDT pair created a Doji candlestick pattern, indicating uncertainty between the bulls as well as the bears. The price fell to the 20-day EMA after this indecision was resolved.
The relative strength index (RSI), is just below the middlepoint, and the 20-day EMA remains flattish. This indicates a balance between supply/demand.
The price will rebound from the current level and break above $52,314, which would indicate that traders see the dips as buying opportunities. The price could rise to $55,500 at 50% retracement and then to $58,686 at 61.8% at $58,686 retracement.
If bears pull the price lower than the 20-day EMA, it could lead to a drop to the 200 day simple moving average ($47569), and then to $45,456. If the price breaks or closes below this level, it could lead to a drop of up to $42,000.
BTC/USDT 4-hour chart. TradingView
They are trying to form a cup-and-handle formation. This will result in a breakout that closes above the overhead resistance of $51,936.33. The target goal for this reversal setup is $58,313.81.
If the price falls below $49,600, this positive outlook will be invalidated. This could bring the price down to $47920.42. This support could also give way, and the price could fall to $45,558.85.
Polygon (MATIC), has been in an uptrend. The bears presented a formidable challenge at $2.70 but the bulls didn’t give up and drove the price to an all-time high.
Daily chart MATIC/USDT Source: TradingView
MATIC/USDT could begin the next leg if bulls maintain MATIC price above 2.70. The pair could rise first to $3.41, and if that level is reached, the up-move might reach $5.
Bulls have control of the market, as evidenced by the RSI in positive territory and an upwardly moving 20-day EMA ($2.30). It will be a sign that the current breakout was a bull trap if the price falls below the 20-day EMA. The price could drop to $2, and then to $1.73.
MATIC/USDT 4-hour chart. Source: TradingView
The resistance has been overcome by the bulls after they failed to break free and maintain above $2.70 three times. The bears will not give up and continue to resist the upward movement at the resistance line in the ascending channel.
The pair could fall to $2.42 if the price drops below its current level or falls below the 20-EMA. This support is crucial for bulls to protect as a crack could cause the pair to plunge towards the 200-SMA.
The bullish momentum could increase if bulls continue to drive the price higher than the channel.
NEAR Protocol’s NEAR token gained momentum after breaking through the falling wedge pattern Dec. 23. This price moved above $13.23, which was strong resistance, signaling the resumption in the uptrend.
Daily chart NEAR/USDT Source: TradingView
The bulls have no way of winning and the bears are determined to defend the $16 level. On Dec. 25, the NEAR/USDT pair created an inside-day candlestick structure, indicating indecision between the bulls as well as the bears.
The price of the pair could fall to $14 if it breaks below that level. If the price rebounds strongly from either level, it will indicate that traders are buying dips and the sentiment is positive.
The pair could reach $17.95 if bulls push the price higher than $15.93. If bears fall and maintain the price below 20-day EMA, this bullish view will be negated.
NEAR/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the pair consolidating between $14.20-15.93. This is a good sign. Bulls are in control of the market, as the 20-EMA is moving up and the RSI is in a positive zone.
The pair could resume its uptrend if buyers push the price to $15.93. The price could fall to $13.23, if it breaks below the 20EMA. This level will likely act as strong support, but if it breaks, the next stop could become $11.50.
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Cosmos (ATOM), which broke out above the resistance line in the descending channel on December 25, indicated that the downtrend might be over.
Daily chart ATOM/USDT Source: TradingView
The 20-day EMA ($25.91), has begun to rise and the RSI has moved into positive territory, indicating that bulls hold the upper hand. The ATOM/USDT pair can rise to $33.60 if buyers maintain the price above this channel and then to $38 if they continue to buy.
It is possible for the price to fall below the overhead resistance or current level and break below the 20-day EMA. This will indicate that traders are continuing to sell rallies. The price could drop to the 200 day SMA ($24.12).
ATOM/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the pair gained momentum after breaking above the 200 SMA and closing above it. Although the bears attempted to halt the upward movement at $30 and pull down the price, the bulls were able to defend the 20-EMA.
This indicates that traders are buying dips and the sentiment is turning positive. The overhead zone of $33.60-34.15 could see the pair rally, where bears might mount strong resistance.
If the price falls below the 20-EMA it could indicate that there is more supply than demand. This could lead to a possible drop to $26.37, and then to 200-SMA.
The HNT token of Helium bounced off the strong support at $25, and broke above the 20 day EMA ($35.38), on December 16. Although the bears tried to push the price below the 20-day EMA, the bulls bought the dip and extended it to $43.40 on December 23.
Daily chart HNT/USDT Source: TradingView
The overhead zone is defended by the bears between the Fibonacci level at 50% at $42.14 (retracement level) and the 61.8% level at $46.18 (retracement level). This has brought the price back down to the 20-day EMA. It is an important level to monitor.
The buyers will attempt to push HNT/USDT above the overhead zone if the price recovers from the current level. The pair could reach $51.94.
If bears drop below the 20-day EMA price, the pair could fall to $29.94. The price could drop to $25 if the close and break are below this level.
HNT/USDT 4-hour chart. TradingView
The overhead resistance of $42 is being defended by the bears. The bulls drove the price higher than this resistance but they couldn’t sustain it. This could have caused a correction by the aggressive bulls.
The 20-EMA has sunk and the RSI is close to the midpoint. This indicates a balance between supply/demand.
The correction could get deeper if bears pull the price lower than the 200-SMA. If that happens, the pair may slip to $30. A break and close above $39.50 could lead to the price reaching $42. If the price breaks and closes above this level, it will indicate the resumption or continuation of the uptrend.
You should research all aspects of trading and investment before making any decision.
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.