The S&P 500 Index (SPX) rose 2.49% last week, extending its streak of weekly gains to seven weeks. for the longest time Such winning streak since 2017. However, Bitcoin (B T c) could not maintain its momentum and became a victim of profit-booking by the bulls. Trading Resource Content Indicator Said An X (formerly Twitter) post said “year-end profit taking and tax loss harvesting” will prevail in the short term.
However, a crash is unlikely as many analysts expect the United States Securities and Exchange Commission to do so. approve one or more Spot Bitcoin exchange-traded fund applications in January. If this happens, it could prove to be a game-changer for the sector.
VanEck CEO Jan Van Eck said in an interview with CNBC that Bitcoin is likely to take a hit New all-time high in the next 12 months, He hopes that Bitcoin will become a companion to gold.
What are the important levels that could stop the decline in Bitcoin and altcoins? Let’s analyze the chart to find out.
S&P 500 Index Price Analysis
The S&P 500 index witnessed a strong rally over the past few days, taking the price above the upper resistance level of 4,650 on December 13.
The sharp rally has pushed the Relative Strength Index (RSI) into overbought territory, indicating that markets have become overheated in the short term. This may trigger a correction or consolidation in the next few days. Strong support on the downside lies at the breakout level of 4,650 and then the 20-day exponential moving average (4,601).
If the price holds higher and breaks above 4,740, the index could extend the uptrend to 4,819. This level is again likely to see a tough battle between the bulls and bears, but if the buyers prevail, the rally may reach the psychological level of 5,000.
us dollar index price analysis
Bulls repeatedly failed to hold the US Dollar Index (DXY) above the 20-day EMA (103) between December 5-13.
This encouraged bears to resume their selling, sending the index lower. Bears pushed the price below the 61.8% Fibonacci retracement level at 102.55 on December 14, indicating the resumption of the corrective phase. The next strong support is at 101.
The RSI is showing early signs of a positive divergence, indicating that selling pressure may weaken. If the price rises above 101 and above the 20-day EMA, the index may continue to swing within a larger range between 101 and 108.
bitcoin price analysis
Bitcoin’s range-bound move between the 20-day EMA ($41,323) and the downtrend line moved to the downside on December 18, but the breakdown lacked momentum.
The flat 20-day EMA and RSI near the midpoint suggest a range-bound action in the near term. If the price drops below $40,000, the BTC/USDT pair may drop to the important support at $37,980. Bulls are likely to see aggressive buying at this level.
Alternatively, if the price rises and climbs above the 20-day EMA, it will indicate strong demand at lower levels. The bulls will then attempt to overcome the barrier on the downtrend line. If they do, the pair could reach $44,700.
ether price analysis
ether (ETH) slipped below the strong support at $2,200 on December 18, indicating that bulls are losing their grip.
If the price sustains below $2,200, the ETH/USDT pair could drop to the 50-day SMA ($2,074). This level may again attract buyers, but bears will try to stop the recovery at $2,200. If this happens, the chances of a break below the 50-day SMA increase. After this the pair may fall to $1,900.
This negative outlook will be invalidated in the near term if the price rises above $2,200. This will indicate strong buying at lower levels. The pair will then try to rise to the overhead resistance at $2,332.
bnb price analysis
Bulls fail to push BNB higher (bnb) Above $260 may have tempted short-term traders to book profits.
This triggered a pullback, falling below the moving average on December 18. The 20-day EMA ($240) has started to decline, and the RSI has slipped below the midpoint, indicating that the bears are trying to gain the upper hand. This increases the possibility of a decline to $223.
If the price strengthens above the $223 support and rises above the moving averages, it will signal strong buying at lower levels. Then the BNB/USDT pair may oscillate between $223 and $260 for a few more days.
xrp price analysis
Bulls fail to propel XRP (xrp) The move back above the moving averages over the past few days attracted another round of selling.
The bears will try to sink the price to the strong support at $0.56. If the price rises above this level and rises above the 20-day EMA ($0.62), it would suggest that the XRP/USDT pair could remain stuck between $0.73 and $0.56 for some time.
The first sign of weakness would be a break and close below the strong support at $0.56. This could pave the way for a decline to the crucial support at $0.46. The next leg of the uptrend is likely to begin after buyers take the price above $0.74.
solana price analysis
Solana (Fifth note of musical scale) dropped below $79.50 on December 15 and reached the 20-day EMA ($67.77) on December 18.
The bulls have not allowed the SOL/USDT pair to close below the 20-day EMA since the beginning of the rally on October 16. Therefore, a breakdown of the level is likely to trigger stops from many traders. This could trigger a decline to the 50-day SMA ($57.83) followed by psychological support at $50.
If the bulls want to prevent a deeper decline, they will have to aggressively defend the 20-day EMA and take the price above $80. This would set the stage for a potential rally to $100.
Connected: Analyst says spot Bitcoin ETF will be a ‘bloodbath’ for crypto exchanges
cardano price analysis
Cardano (ADA) rose above the overhead resistance at $0.65 on December 13, but the bulls could not sustain the momentum. On December 14, the price declined and dropped back below $0.65.
The sharp drop below $0.68 suggests bulls are booking profits in a hurry. This suggests that the ADA/USDT pair could consolidate on its recent gains over the next few days. If the price bounces back above the 20-day EMA ($0.53), the pair could rise to $0.68 and remain stuck between these two levels for some time.
A break below the 20-day EMA could accelerate selling, opening the door for further downside to strong support at $0.46.
avalanche price analysis
Buyers pushed avalanche (Avax) above the overhead resistance at $42.50 on December 16 and 17, but they could not sustain higher levels.
The AVAX/USDT pair has started a decline, finding strong support at the 20-day EMA ($33). If the price moves strongly above this level, it will indicate that sentiment remains positive and bulls are buying the dip. On the positive side, a break and close above $45 would signal a resumption of the uptrend. The next target is at $50.
Conversely, if the price falls below the 20-day EMA, it will signal that the bulls are rushing to the exit. This could lead to a deep correction to $25.
dogecoin price analysis
Dogecoin (Doge) bounced back from the 20-day EMA ($0.09) on December 16, but bulls could not sustain higher levels.
The price declined on December 17 and fell below the 20-day EMA on December 18. The 20-day EMA is flattening out, and the RSI is near the midpoint, indicating a balance between supply and demand.
If the price sustains below the 20-day EMA, the profits will tilt in favor of the bears. The DOGE/USDT pair could drop to the 50-day SMA ($0.08).
If the bulls want to save the position, they will have to quickly push the price above the 20-day EMA. The bullish momentum may increase after buyers cross the $0.11 barrier.
This article does not constitute investment advice or recommendations. Every investing and trading move involves risk, and readers should do their own research when making decisions.
