By James Davis
Bitcoin posted gains of 8.7% last week but began this week on a downtrend, falling to a key support level. The price correction witnessed in BTC has led to liquidations in a number of altcoins. Data from CoinGlass shows that traders who opened long positions have collectively lost over $300 million.
Nonetheless, the current fall does not mean the end of an upward trend. Price corrections are common in an uptrend. These pullbacks are normally followed by strong upward movements as long-term investors buy the dip.
The current corrections are not expected to last long because of the many bullish catalysts next year. Several ETF analysts expect the United States Securities and Exchange Commission to approve at least one spot Bitcoin ETF in January. The approval could lead to increased interest in crypto from traditional investors, thus pushing prices of digital currencies up.
Other bullish drivers in 2024 are the Bitcoin halving event in April and the expectation that the US Central Bank will cut the interest rates. Goldman Sachs said last week that the Federal Reserve will begin cutting the rates at the start of the third quarter.
Now, let’s explore price charts to discover which support levels are likely to attract buyers.
Bitcoin Price Analysis
BTC had been consolidating near the $44,698 resistance level over the weekend until yesterday, when it reversed to the 20-day Exponential Moving Average (EMA) of $40,721 before bouncing off to its current price of $41,631. The bulls will once again attempt to thrust Bitcoin above $44,698. However, the bearish divergence formed on the Relative Strength Index suggests that the positive momentum is cooling down.
Nonetheless, if the buyers manage to push BTC above $44,698, the crypto asset may reach the resistance at $48,103. On the other hand, Bitcoin will likely fall to $37,890 if $40,721 doesn’t hold.
Ethereum Price Analysis
ETH has continued to plummet since reversing from $2,401 on Saturday. The second-largest digital currency is now trading below the $2,201 breakout level, indicating that short-term investors are rushing to exit the market.
Despite the weakening bullish momentum, the buyers are still trying to guard the 20-day Exponential Moving Average of $2,185. That’s because they understand letting this level crumble could lead to a dip to the 50-day Simple Moving Average of $1,998.56. On a positive note, Ethereum might rise above $2,401 if the buyers build a strong upward momentum from $2,185.
BNB Price Analysis
BNB crossed above the $239.08 resistance level on December 9. Since then, the fourth-largest crypto asset by market valuation has been rallying, reaching $253.17 as of this writing. The bulls are looking to push BNB to $266.19, where a tough battle is expected against the bears. If the bears succeed, the token could plummet to the $203.68 support, and if the bulls win the battle, BNB could grow to retest the $310.09 resistance level.
XRP Price Analysis
XRP bulls failed to build a positive momentum when the token crossed above $0.6729376 on Friday. Their failure has pulled XRP to $0.6120006 as of writing. It is worth mentioning that the crypto asset is currently valued below the 50-day Simple Moving Average of $0.6289101, meaning the bears have a slight advantage, which they can capitalize on and drag XRP to the $0.5690120 support level.
On the positive side, the bulls could attempt to push the token to $0.6729376 if it crosses above $0.6289101.
Solana Price Analysis
Bear managed to cause a price reversal from $78.09 on Saturday, forcing SOL to reach $69.51 at press time. Despite the pullback, Solana has been one of the top-performing cryptocurrencies over the last few weeks. Notably, the token has surged 420% this year. SOL is likely to witness increased buying activity when it reaches the 20-day EMA of $63.28. If the bulls defend this level and start a recovery rally, Solana could rise above $78.09 to retest $100.
On the other hand, if $63.28 crumbles, a drop to the $51.28 support looks likely.