Bitcoin and alternative cryptocurrencies are undergoing a test for support at lower levels, revealing continued positive sentiment and traders buying the dips. While Bitcoin struggles to recover sharply after the December 11th fall, data from Glassnode indicates significant selling pressure, with short-term holders sending over $2 billion worth of Bitcoin to exchanges on December 11th and 12th. Despite these challenges, Marcel Pechman, a Cointelegraph contributor, believes Bitcoin is on track to reach $50,000, with the recent correction primarily influenced by the spot market.
Bitcoin Price Analysis: Bitcoin is holding above the 20-day EMA ($40,870), but a strong relief rally is yet to materialize, suggesting hesitancy to buy at higher levels. Institutional-sized bids may indicate accumulation or short-term trading opportunities, with Material Indicators highlighting the uncertainty. Negative divergence on the RSI suggests slowing positive momentum, risking a breakdown of the 20-day EMA. If this happens, Bitcoin could drop to the 50-day SMA ($37,707). Bulls aim to push the price to the resistance at $44,700, with a potential surge to $48,000 if successful.
Ether Price Analysis: Ether's shallow bounce off strong support at $2,200 indicates a lack of demand, and bears aim to pull the price below the 20-day EMA ($2,192). Sustaining lower levels could accelerate selling, leading to a drop to the 50-day SMA ($2,029). Alternatively, a rise above $2,250 suggests ongoing buyer interest, with a retest of the 52-week high at $2,403 and a potential rally to $3,000.
BNB Price Analysis: BNB forms an inverse head-and-shoulders pattern, completing on a break above the neckline near $275. The 20-day EMA ($238) turning up and the positive RSI indicate bulls' advantage. If the price reaches the neckline, a battle is expected, but a breakthrough could lead to a new uptrend towards the pattern target of $333. Support is likely at the moving averages, with a break below suggesting weakening bullish control and a potential drop to vital support at $223.
XRP Price Analysis: XRP faces resistance at the 20-day EMA ($0.63) after the bulls failed to push the price above it. Sellers may target the critical support at $0.56, with potential solid buying by bulls. Positive moves above $0.67 could lead to a climb to the overhead resistance at $0.74.
Solana Price Analysis: Solana faces selling pressure near $72, with a negative RSI divergence indicating weakening bullish momentum. A drop below the 20-day EMA may accelerate selling, leading to a potential drop to the 50-day SMA ($53.73). Alternatively, a rise from the current level may indicate strong defense by bulls, with a potential rise to $78.
Cardano Price Analysis: Cardano consolidates gains between $0.65 and the 50% Fibonacci retracement level of $0.51, suggesting dips are being purchased. Upsloping moving averages and an overbought RSI hint at an upside path. Bulls aim to push the price above $0.65, with a potential uptrend toward $0.70 and $0.78.
Dogecoin Price Analysis: Dogecoin turned down from overhead resistance at $0.11, dipping to the 20-day EMA ($0.09). A strong bounce may indicate continued dip buying, with bulls attempting to overcome $0.11. Success could lead to a surge to $0.14 and $0.16. A drop below the 20-day EMA may result in a slide to the 50-day SMA ($0.08) and $0.07.
Avalanche Price Analysis: Avalanche faces resistance at $38, but a positive sign is the aggressive bounce off the 38.2% Fibonacci retracement level of $34.36. Sustaining the rebound may lead to a retest of the high at $42.89. Failure to remain above $38 suggests bearish sentiment, with a potential drop to the 20-day EMA ($28.22).
Polkadot Price Analysis: Polkadot's rally stalled below the overhead resistance of $7.90, with profit-booking by short-term traders. Rebounding off the 20-day EMA ($6.19) suggests positive sentiment, and bulls may attempt to breach $7.36. A break below the 20-day EMA could sink the pair to the 50-day SMA ($5.35).
Polygon Price Analysis: Polygon's rise above $0.89 on December 8 was short-lived, and bears aim to pull the price below the 20-day EMA ($0.83). Sustaining lower levels could lead to a deeper correction toward $0.70. A sharp turn up and rise above $0.89 may indicate strong buying, with a potential climb to $0.95 and $1.
