Bitcoin (BTC) is trying to extend its recovery by climbing the psychological $ 50,000 mark, but many well-known analysts believe that BTC may remain in a limited range for weeks or months.
On-chain analysis firm CryptoQuant stated that Bitcoin “still brings BTC to the whale exchange.” It simply indicates that the whales are set to respond immediately, depending on which path the price chooses.
Daily market indicators for cryptocurrency. Source: Coin360
A sharp correction in recent days has pushed the Crypto Fear and Greed Index to 16, indicating a feeling of “extreme fear”. Some believe the current decline is similar to the crash in March 2020.
However, CoinCorner CEO Danny Scott said the bitcoin fall was due to players liquidating their positions, not sentiment. According to him, the mood is “still very optimistic”.
Can Bitcoin, after the latest change, start a strong recovery and lift the crypto markets? Let’s take a look at the 10 best cryptocurrency charts to find out.
BTC / USDT
Bitcoin broke below the uptrend line and psychological support to $ 50,000, which could have triggered a panic sale of traders. Although the bulls have bought aggressively in the downturn, it is difficult for them to push the price above $ 50,000.
BTC / USDT daily chart. Source: TradingView
The 20-day falling exponential moving average (EMA) ($ 55,551) and the relative strength index (RSI) near the oversold range indicate that there is control. Sellers will try to turn the uptrend line into resistance. If this happens, the Bears will again try to lower the BTC / USDT pair to the strong support range of $ 42,000 to $ 39,600.
Alternatively, if the bulls push the price above the uptrend line, the pair could rise to a 20-day moving average. This is an important level to look for because an eruption and an end over it will be the first sign that the bears may lose their grip. The pair can then rise to the upper resistance level of $ 61,000.
ETH / USDT
Ether (ETH) fell below the 100-day simple moving average (SMA) ($ 3873) on December 4, but the Bears failed to maintain the lower levels. This indicates that traders are accumulating during deflationary periods.
ETH / USDT daily chart. Source: TradingView
An attempt to recover meets strong resistance around $ 4250. On December 6, the bears once again tried to pull the price below the $ 3,900 support, but the long tail of the candle indicates that the bulls are protecting the level.
If buyers and support push the price above the 20-day moving average ($ 4315), the ETH / USDT may rise to the upper resistance of $ 4,868. An eruption and a closure over this resistance may signal a resumption of the uptrend.
Conversely, if the price reverses from the 20-day moving average, the bears will make another attempt to move lower while keeping the pair below the 100-day simple moving average. If successful, the pair could drop to $ 3400.
BNB / USDT
Binance Coin (BNB) broke out and closed below the 20-day moving average ($ 592) on December 3rd. This was followed by a strong sale on December 4, which pushed the price towards the 100-day simple moving average ($ 496).
BNB / USDT daily chart. Source: TradingView
Buyers aggressively defended the 100-day simple moving average, seen in the long tail of the daily light. The recovery can reach the 20-day moving average, where the bears are likely to offer strong resistance.
If the price reverses from the upper resistance, the BNB / USDT pair may get stuck between the moving averages.
An eruption and a close above the 20-day moving average could pave the way for a move against the rising resistance zone from $ 669.30 to $ 691.80. This positive sentiment will be canceled out on a fall below the 100-day simple moving average. The pair may then fall to $ 435.30.
SOL / USDT
Solana (SOL) refused and returned to the triangle on December 3. This could have taken the bulls that bought the triangle outbreak on December 1st and 2nd.
SOL / USDT daily chart. Source: TradingView
Sales picked up after the SOL / USDT collapsed and closed below the 20-day moving average ($ 209). The Bears pulled the price below the triangle’s guideline and 100-day moving average ($ 181) on December 4th.
Although the bulls bought dip and defended the 100-day simple moving average again on December 5, they failed to develop an improvement.
The bears seized this opportunity and are currently trying to push the price below the 100-day moving average. If successful, the pair could fall into a strong support range at the $ 120- $ 140 level.