Bitcoin (BTC) has failed to rebound sharply following the fall on Dec. 11, suggesting selling pressure on relief rallies. Glassnode data shows that short-term holders (STHs), entities holding Bitcoin for 155 days or less, sent $1.93 billion worth of Bitcoin to exchanges on Dec. 11 and $2.08 billion on Dec. 12. The last time single-day selling crossed the $2 billion mark was way back in June 2022. This shows that speculators are in a hurry to dump their holdings.

However, lower levels are attracting buyers. Trading resource Material Indicators suggested that “institutional sized” bids could be seen but added that it was unclear if it was accumulation or a short-term trading opportunity with dips being purchased and rallies being sold.

Daily cryptocurrency market performance. Source: Coin360

Cointelegraph contributor Marcel Pechman analyzed derivatives data and said that Bitcoin remains on track to hit $50,000 despite the recent correction. He added that chances of “cascading liquidations” were low as the correction seems to have been “primarily driven by the spot market.”

What are the important support levels on Bitcoin that are likely to hold? Could altcoins also start a relief rally? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin has been holding above the 20-day exponential moving average ($40,870), but the bulls have failed to start a strong relief rally. This suggests hesitation to buy at higher levels.

BTC/USDT daily chart. Source: TradingView

The negative divergence on the relative strength index (RSI) suggests that the positive momentum could be slowing down. That puts the 20-day EMA at risk of breaking down. If that happens, the BTC/USDT pair could plummet to the 50-day simple moving average ($37,707).

Meanwhile, the bulls are likely to have other plans. They will try to push the price to the overhead resistance at $44,700. This level is expected to witness a tough battle between the bulls and the bears. If the buyers prevail, the pair could soar to $48,000.

Ether price analysis

Ether’s (ETH) shallow bounce off the strong support at $2,200 on Dec. 12 suggests a lack of demand at lower levels.

ETH/USDT daily chart. Source: TradingView

The bears are trying to build upon their advantage by pulling the price below the 20-day EMA ($2,192). If they sustain the lower levels, the selling could accelerate, and the ETH/USDT pair could tumble to the 50-day SMA ($2,029).

Conversely, if the price turns up and rises above $2,250, it will suggest that lower levels continue to attract buyers. The pair will then try to retest the 52-week high at 2,403. A rally above this resistance could start the next leg of the uptrend to $3,000.

BNB price analysis

BNB’s (BNB) price action has formed an inverse head-and-shoulders pattern, which will complete on a break and close above the neckline near $275.

BNB/USDT daily chart. Source: TradingView

The 20-day EMA ($238) has started to turn up, and the RSI is in the positive territory, indicating that bulls have the upper hand. The price could reach the neckline, where the bears are likely to mount a strong defense. If bulls overcome this barrier, the BNB/USDT pair could start a new up move toward the pattern target of $333.

Any dip from the current level is likely to find support at the moving averages. A break below the moving averages will suggest that the bulls are losing their grip. The pair may then tumble to the vital support at $223.

XRP price analysis

The bulls tried to stall XRP’s (XRP) pullback at the 50-day SMA ($0.62) on Dec. 11, but they could not push the price above the 20-day EMA ($0.63).

XRP/USDT daily chart. Source: TradingView

The selling resumed on Dec. 13, and the price fell below the 50-day SMA. Sellers will try to tug the price to the critical support at $0.56. This level is likely to witness solid buying by the bulls. The 20-day EMA has flattened out, and the RSI is just below the midpoint, indicating a possible range-bound action in the near term.

Buyers will be back in the driver’s seat after they push the price above $0.67. The XRP/USDT pair could thereafter climb to the overhead resistance at $0.74.

Solana price analysis

Solana (SOL) snapped back from the 20-day EMA ($64.46) on Dec. 11, but the bulls could not sustain the recovery.

SOL/USDT daily chart. Source: TradingView

The bears sold near $72 and again pulled the price to the 20-day EMA on Dec. 13. The negative divergence on the RSI suggests that the bullish momentum is weakening. If the price plunges below the 20-day EMA, the selling could accelerate, and the SOL/USDT pair may drop to the 50-day SMA ($53.73).

Alternatively, if the price turns up from the current level, it will indicate that the bulls continue to defend the 20-day EMA with vigor. The pair may then rise to $78.

Cardano price analysis

Cardano (ADA) is consolidating its gains between $0.65 and the 50% Fibonacci retracement level of $0.51, indicating that dips are being purchased.

ADA/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI in the overbought zone suggest that the path of least resistance is to the upside. The bulls will again try to shove the price above $0.65. If they manage to do that, the ADA/USDT pair could start the next leg of the uptrend toward $0.70 and then $0.78.

If bears want to prevent the upside, they will have to yank the price below $0.51 and the crucial support at the 20-day EMA ($0.47).

Dogecoin price analysis

Dogecoin (DOGE) turned down from the overhead resistance of $0.11 on Dec. 11 and dipped to the 20-day EMA ($0.09) on Dec. 13.

DOGE/USDT daily chart. Source: TradingView

A strong bounce off the 20-day EMA will suggest that traders continue to buy on dips. The bulls will then make one more attempt to overcome the obstacle at $0.11. If they succeed, the DOGE/USDT pair could surge to $0.14 and later to $0.16.

This bullish view will be negated if the price continues lower and breaks below the 20-day EMA. If that happens, the pair could slide to the 50-day SMA ($0.08) and subsequently to $0.07.

Related: Why is Cardano price down today?

Avalanche price analysis

The bulls propelled Avalanche (AVAX) above the overhead resistance of $38 on Dec. 11 and 12, but could not sustain the higher levels.

AVAX/USDT daily chart. Source: TradingView

That resulted in a pullback on Dec. 13, but a positive sign is that the bulls aggressively purchased the dip to the 38.2% Fibonacci retracement level of $34.36. Buyers have again pushed the price above $38. If the rebound sustains, the AVAX/USDT pair could retest the high at $42.89.

Contrarily, if the price fails to remain above $38, it will suggest that bears continue to view the rallies as a selling opportunity. A drop below $34.36 may open the downside target to the 20-day EMA ($28.22).

Polkadot price analysis

Polkadot’s (DOT) rally stalled just below the overhead resistance of $7.90 on Dec. 9, indicating profit-booking by short-term traders.

DOT/USDT daily chart. Source: TradingView

The price rebounded off the 20-day EMA ($6.19) on Dec. 11, but the bulls could not overcome the barrier at $7.36. That suggests bears are active at higher levels. Sellers will attempt to pull the DOT/USDT pair to the 20-day EMA, which remains the key level to keep an eye on.

A bounce off the 20-day EMA indicates that the sentiment remains positive and traders are buying on dips. The bulls will then make one more attempt to clear the hurdle at $7.90. On the contrary, a break below the 20-day EMA could sink the pair to the 50-day SMA ($5.35).

Polygon price analysis

Polygon’s (MATIC) rise above $0.89 on Dec. 8 was short-lived as the bears pulled the price back below the level on Dec. 11.

MATIC/USDT daily chart. Source: TradingView

Buyers tried to push the price back above $0.89 on Dec. 12, but the bears held their ground. Sellers are trying to strengthen their position further by pulling the price below the 20-day EMA ($0.83). If they do that, it will suggest the start of a deeper correction toward $0.70.

This negative view will be invalidated in the short term if the price turns up sharply from the current level and rises above $0.89. That will indicate solid buying at lower levels. The pair may then climb to $0.95 and subsequently to $1.

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.

Solana stabilizes at $65 after a recent dip from 2023 highs at $78.

Technical indicators suggest potential upward momentum for SOL, with a predicted breakout if it holds above key levels.

Investor anticipation of SOL’s potential breakout above $80 by December end remains strong.

Following a recent pullback from its 2023 highs of $78, Solana has found stability at the $65 mark. This decline was observed in tandem with corrections in major cryptocurrencies like Bitcoin and Ethereum, contributing to a 2.1% dip in the overall market cap to $1.61 trillion.

However, amidst this adjustment, technical indicators are hinting at potential upward momentum for SOL. Notably, Solana’s price is rebounding from the $65 congestion zone highlighted on the four-hour chart, suggesting a possible revival of the uptrend if it maintains above this level. Traders are advised to monitor a break above the upper ascending trendline, signaling a resumption of the upward trajectory.

While the Moving Average Convergence Divergence (MACD) persists below the neutral range, there’s significant potential for a buy signal. If a bullish crossover occurs, indicating the MACD line surpassing the signal line, traders and investors could view the current downturn as a favorable moment for purchasing.

Moreover, indicators like the Relative Strength Index (RSI), while not yet oversold, show signs of a rebound from lows at 36. This drop seems to have attracted more holders to accumulate SOL in anticipation of a larger breakout. Speculations among investors are rife, targeting levels not just around $80 but potentially surpassing $100 before December concludes.

Additionally, with the upcoming Federal Reserve meeting on interest rates and easing inflation in November, the crypto market, including Solana, appears to be taking a temporary pause. Despite this, investor sentiment remains bullish, underpinned by a broader trend of disinflation.

Read also:

Bybit CEO to Lay Off Up To 30% of Global Headcount

$150 ADA Prediction Article Taken Down After Charles Hoskinson Calls “Pure Lies”

Crypto Exchange Gemini Lays off an Additional 7% Of Its Staff

Solana’s Resilience: Potential Surge to $30 Amidst Recent Corrections

Popular Bitcoin Analyst Discusses What Lies Ahead for BTC

The post Solana Finds Stability at $65: What Lies Ahead for the Cryptocurrency? appeared first on Crypto News Land.

The US Federal Reserve opted to maintain its benchmark interest rate at 5.50% despite acknowledging the evident slowdown in economic growth and the job market. This decision, however, arrived hand-in-hand with acknowledgment that inflation, though persistently above the 2% target, has shown signs of easing. What sent ripples through the financial world, though, was the Fed’s subtle indication of potential rate cuts in the near future, potentially up to 75 basis points, marking a notable departure from their recent tightening strategy.

This pivotal announcement didn’t just affect the traditional markets. It catalyzed a significant surge in Bitcoin’s value, propelling the leading cryptocurrency beyond the $42,000 mark. The reasoning behind this sudden upward movement lies in the anticipation surrounding the potential approval of Bitcoin exchange-traded funds (ETFs) by US regulators. The prospect of a more accessible and regulated Bitcoin market for millions of investors contributed substantially to this surge.

BTC/USDT 1 day-chart on Binance | Source: TradingView
But the impact didn’t stop there. The broader financial markets experienced a positive jolt, particularly in riskier asset categories. Investors interpreted the Fed’s potential shift towards rate cuts as a green light for riskier ventures, like Bitcoin. This pivot in sentiment stems from the conventional belief that interest rate cuts correlate with improving economic conditions, prompting a migration towards higher-risk assets like cryptocurrencies.
This intriguing correlation between the Federal Reserve’s monetary policies and Bitcoin’s value highlights the sensitivity of the cryptocurrency market to global monetary shifts. It underscores how investors, seeking diversification and potential havens amid economic uncertainties, are increasingly viewing Bitcoin as a viable addition to their portfolios.
The evolving relationship between the Fed’s stance and the crypto market reaffirms Bitcoin’s growing relevance in the broader financial landscape. As regulatory landscapes evolve and central banks navigate economic complexities, the intersection between traditional monetary policies and the digital asset realm becomes increasingly intertwined.
Source: https://azcoinnews.com/federal-reserve-hints-at-rate-cuts-bitcoin-soars-to-42000.html