BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX, DOT, DOGE Price Movement Analysis for 20th December, 2021

 BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX, DOT, DOGE Price Movement Analysis for 20th December, 2021

Bitcoin and the majority of big cryptocurrencies are trading below the 200-day SMA, indicating that the bears have complete control.

Bitcoin (BTC) continues to lose ground in December, indicating that traders are cashing in on their gains before the year's end. Because of the uncertainty surrounding the spread of the COVID-19 omicron form in numerous regions of the world, the lack of a Santa bounce in the US financial markets shows that risk-off mentality remains.

Even after the dramatic decrease in Bitcoin's price, institutional demand remains tepid, with statistics showing that the Grayscale Bitcoin Trust (GBTC), the largest institutional Bitcoin instrument, is selling at a discount of more than 20%.

 

Daily cryptocurrency market performance. Source: Coin360

"High volume panic capitulations," according to veteran trader Peter Brandt, normally suggest a bottom in Bitcoin, but this hasn't happened yet during the current slide from the all-time high. This could be a sign that the "real" surrender is still to come.

Will Bitcoin and most other major altcoins continue to fall in the coming days, or will a Santa rally save the day? Let's look at the top ten cryptocurrency charts to see what we can learn.

 

BTC/USDT

The bulls have been defending the 200-day simple moving average (SMA) ($47,130) for the past few days, but they have not been able to push the price above the 20-day exponential moving average (EMA) ($49,622). This shows a lack of demand at higher levels.

BTC/USDT daily chart. Source: TradingView

The bears pulled the price below the 200-day SMA on Dec. 20 and if the price sustains below this crucial level, the selling may pick up momentum.  TheBTC/USDT pair is at risk of hitting the strong support zone at $42,000 to $39,600. The bulls are likely to defend this zone aggressively but the recovery may face a stiff challenge at the 200-day SMA.

This negative view could invalidate if the price turns up from the current level and rises above the 20-day EMA. Such a move will suggest that the break below the 200-day SMA could have been a bear trap. The pair could then rise to $52,000 and later attempt a rally to $60,000.

ETH/USDT

Ether (ETH) has been trading inside a descending channel for the past few days. The bounce off the support line of the channel on Dec. 13 failed to rise above the 20-day EMA ($4,058), indicating that bears are selling on rallies.

ETH/USDT daily chart. Source: TradingView

The downsloping 20-day EMA and the relative strength index (RSI) below 43 suggest that the path of least resistance is to the downside. The ETH/USDT pair could slide to $3,643.73 and then to the support line of the channel.

A strong rebound off the support line could extend the stay inside the channel for a few more days. The bulls will then make one more attempt to push the price above the channel. If they succeed, it will indicate that the selling pressure may be reducing.

Alternatively, if the price breaks below the channel, the bears could challenge the 200-day SMA ($3,288). A break and close below this level could intensify the selling.

BNB/USDT

The buyers successfully defended the 100-day SMA ($509) for the past few days but they could not push Binance Coin (BNB) above the 20-day EMA ($552). This suggests that demand dries up at higher levels.

BNB/USDT daily chart. Source: TradingView

The downsloping 20-day EMA and the RSI in the negative zone suggest that bears have the upper hand. If the price breaks and sustains below the 100-day SMA, the BNB/USDT pair could drop to the 200-day SMA ($436).

Contrary to this assumption, if the price turns up from the current level and rises above the 20-day EMA, it will suggest that the bulls have absorbed the supply. That could start a recovery to $617 and next to the stiff overhead resistance at $669.30.

SOL/USDT

Solana (SOL) turned down from the 20-day EMA ($183) on Dec. 19, indicating that bears are defending this level with vigor. If the price slips and sustains below $167.88, a retest of $148.04 is possible.

SOL/USDT daily chart. Source: TradingView

This is an important support to watch out for because a break below it could sink the SOL/USDT pair to the 200-day SMA ($120). The downsloping 20-day EMA and the RSI below 43 suggest that bears are in control.

This negative view will invalidate if the price turns up from the current level and breaks above the 20-day EMA. Such a move will suggest that the selling pressure may be reducing. The pair could then attempt a rally to $200 and later to $240.

ADA/USDT

Cardano (ADA) repeatedly bounced off the strong support at $1.18 in the past few days but the bulls have not been able to push the price above the 20-day EMA ($1.35). This suggests a lack of demand at higher levels.

ADA/USDT daily chart. Source: TradingView

The bears will now attempt to sink and sustain the price below $1.18. If they manage to do that, the ADA/USDT pair could drop to the critical support at $1. The bulls are likely to defend this level aggressively.

The first sign of strength will be a break and close above the 20-day EMA. Such a move will indicate that demand exceeds supply. The pair could first rise to $1.47 and then attempt a rally to the overhead resistance at $1.87.

XRP/USDT

Ripple (XRP) has been trading between $0.75 and $0.85 for the past few days. The bulls pushed the price above $0.85 on Dec. 20 but the long wick on the candlestick suggests that bears continue to sell on rallies.

XRP/USDT daily chart. Source: TradingView

The RSI has recovered strongly from the oversold levels, indicating that the bearish momentum may be losing steam. This could keep the XRP/USDT pair stuck inside the range for a few more days.

A break and close above $0.85 will indicate that the bulls have overpowered the bears. That could push the price to the psychological mark at $1. Alternatively, a break and close below $0.75 could open the doors for a possible drop to $0.60.

LUNA/USDT

Terra’s LUNA token soared to a new all-time high on Dec. 20 but the long wick on the day’s candlestick suggests that short-term traders may be booking profits at higher levels.

LUNA/USDT daily chart. Source: TradingView

The bears will seek to drag the LUNA/USDT pair to the 20-day EMA ($64) if the price remains below $78.29. This is a critical support to watch since a strong rebound from it will indicate that traders are buying on dips and sentiment is still favourable.

The bulls will then try to push the price over the $78.29 to $81.87 overhead zone once more. If they succeed, the pair may begin to surge towards the psychological level of $100.

Bears pulling the price below the 20-day EMA, on the other hand, indicates that traders are leaving their positions. This might push the price of the pair down to $50.

 

AVAX/USDT

Avalanche (AVAX) bounced off the strong support at $75.50 on Dec. 14 and broke above the downtrend line on Dec. 15. This indicated that bulls are attempting to resume the uptrend.

AVAX/USDT daily chart. Source: TradingView

However, the up-move turned down from the 61.8% Fibonacci retracement level at $119.69, indicating that bears are selling on rallies. The AVAX/USDT pair has reached critical support at the 20-day EMA ($99).

If the price rebounds off the current level, the buyers will again attempt to resume the up-move. A break and close above $119.69 could clear the path for a rally to $131.70 and later to the all-time high at $147.

Conversely, if the price breaks and sustains below the 20-day EMA, the pair could drift down to the strong support at $75.50.

DOT/USDT

Polkadot (DOT) has been trading below the 200-day SMA ($28.82) for the past few days. This suggests that bears are in command. The sellers are currently attempting to sink the price below the strong support zone at $25 to $22.66.

DOT/USDT daily chart. Source: TradingView

If they manage to do that, the DOT/USDT pair could extend its downward journey toward the next support at $16.81. The longer the price stays below the 200-day SMA, the greater the possibility of the continuation of the downtrend.

Contrary to this assumption, if the price rebounds off the current zone, the bulls will make one more attempt to push the pair above the 200-day SMA. If they succeed, it will suggest that the bears are losing their grip. The pair could then rise toward $39.35.

DOGE/USDT

Dogecoin (DOGE) rebounded off the strong support at $0.15 on Dec. 14 and soared above the 20-day EMA ($0.18) but the long wick on the candlestick shows that traders sold at higher levels.

DOGE/USDT daily chart. Source: TradingView

On December 15, the bears dragged the stock down below the 20-day EMA. The aggressive bulls may have been cornered and forced to liquidate their position as a result. This has dragged the price down to $0.15, which is a significant support level.

If the price breaks and closes below this level, it may be dragged to the December 4 low of $0.13. If this support breaks, the DOGE/USDT pair could fall to $0.10, which is a psychological level. If the price rises above the present level, the bulls will try to break through the overhead barrier at the 20-day EMA and $0.19.

 

 

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