By James Davis
Bitcoin has witnessed massive selling pressure this week, with the bears managing to pull the coin below key support levels. So, does this signal the end of an upward trend? Many crypto analysts believe the current price fall is just a correction and that BTC is poised to record another rally over the coming days.
Meanwhile, analytics firm Glasssnode has cautioned dip buyers after noticing that the number of whales (wallets holding over 1,000 BTC) had dropped in recent weeks, indicating that some were booking profits following the Bitcoin rally.
Filbfilb, the co-founder of DecenTrader, was interviewed by news firm Coointelelegraph mid-week. When asked about his thoughts on Bitcoin’s current price depreciation, Filfilb said the coin could dip further and then rally to $47,000 before Bitcoin halving in April.
Let’s study the price chart to find out whether top cryptocurrencies led by BTC will resume an upward trend or the bears will continue mounting selling pressure over the coming days.
Bitcoin Price Analysis
Bitcoin dropped below $36,500 on Thursday, entering the ascending channel pattern. The bulls have been purchasing the dip near the support line of this channel ($35,974), suggesting that lower levels are now deemed buying opportunities. If Bitcoin crosses above $36,500, the buyers may attempt to push it to $38,050 after conquering resistance at $37,749. On the other hand, BTC may drop to the $32,854 support level if $35,974 crumbles.
Ethereum Price Analysis
After holding above the $2,005.90 key resistance level for several days, ETH has finally dropped below that mark, reaching $1,952.84 as of this writing. The buyers’ failure to flip $2,005.90 into strong support can be considered a negative sign. However, the good thing is that Ethereum is still trading way above the 20-day Exponential Moving Average (EMA) of $1,922.05. If buyers thrust ETH above $2,005.90 again, it will indicate solid buying activity at lower prices. The token may then rise to retest $2,198.90. On the contrary, if $1,922.05 breaks, Ethereum could start a downward move to the 50-day Simple Moving Average (SMA) of $1,744.20.
BNB Price Analysis
BNB bears couldn’t build a downward momentum when the token dropped below the 20-day EMA of $238.78 in midweek. The buyers were able to thrust the digital asset to $244.50 after buying the dip at $235.40. The RSI (Relative Strength Index) is now in the positive zone, meaning the buyers have the upper hand. They might try to capitalize on this advantage to push BNB to the $264.08 resistance level, where we anticipate the sellers coming in to block a further rally. A reverse from $264.08 might cause BNB to depreciate to $235.40 again.
XRP Price Analysis
Prices above $0.6798208 have not been easy for the bulls to sustain this week. That indicates significant selling pressure at high levels. As of this writing, the bears have been able to pull XRP below the 20-day Exponential Moving Average of $0.6298074. If they manage to sustain the token’s price below this level, a drop to the 50-day SMA of $0.5739045 would be possible. If this happens, XRP might trade between $0.5739045 and $0.6798208 for an undefined period. A break above $0.6798208 could signal the bulls’ comeback, which may drive XRP to $0.7419805.
Solana Price Analysis
SOL rose as high as $67.50 on Thursday, recording a new yearly high. However, it’s down to $57.38 at press time. We now wait to see what happens at the $51.03 resistance level. In case SOL reaches here, and the bulls buy the dip, the digital currency could head toward $67.50. Conquering this level might fuel another rally to $76.83. Contrary to this assumption, Solana is likely to touch the 20-day EMA of $46.39 if $51.03 breaks.
Polygon Price Analysis
MATIC crossed above $0.9002876 earlier this week for the first time since May. However, the failure of the buyers to maintain Polygon above that level suggested the bears were booking profits. More selling pressure could pull the token to the 20-day Exponential Moving Average of $0.7752806. On the other hand, MATIC may hit $1 if a sustained rally above $0.9002876 happens.