Bitcoin (BTC) and Ether (ETH) broke above their respective overhead resistance levels on December 4, indicating that the bulls are in no mood to slow down. The further the price rises without a significant correction, the greater the sense of loss among traders. When traders chase prices higher, this could lead to an explosive high before a correction occurs.
Cryptocurrency exchange Bybit said in its fourth-quarter report that institutional traders held 35% of their assets in Bitcoin, 15% in Ether, and a large portion held 45% of their assets in stablecoins. In the rest of the altcoins, there was only a minuscule 5%.
This shows that there is still enough firepower available with institutional investors to purchase the cryptocurrency of their choice by selling stablecoins.
Matrixport head of research Markus Thielen said in a recent note that the three previous cryptocurrency bear markets were followed by a three-year bull cycle, and this time will be no different, with 2023 being the first year. Thielen anticipates that Bitcoin will reach $60,000 in April and $125,000 by the end of 2024.
Could bulls hold on to Bitcoin gains and select altcoins, or will higher levels attract aggressive selling by bears? Let’s analyze the graphs to find out.
S&P 500 Index Price Analysis
The bulls pushed the S&P 500 Index (SPX) above the overhead resistance of 4,541 on November 20 and thwarted the bears’ attempts to push the price back below the breakout level.
The bullish move is likely to face selling in the area between 4,607 and 4,650. If the price turns down from the upper zone but does not fall below 4541, it will indicate that the bulls have turned the level into support. That will improve prospects for a rally above 4,650. The index could then shoot up to 4,800.
Meanwhile, the bears likely have other plans. They will try to take the price below the breakout level of 4.541 and then the 20-day exponential moving average (4.494). This will clear the way for a breakdown of the 50-day simple moving average (4.364).
US Dollar Index Price Analysis
The US Dollar Index (DXY) is attempting to initiate a recovery from the 61.8% Fibonacci retracement level of 102.55, but the bulls are likely to face strong resistance at the 20-day EMA (104.02 ).
If the price falls sharply from the 20-day EMA, it will suggest that sentiment remains negative and traders are selling on rallies. That will improve prospects for a break below 102.55. If that happens, selling could accelerate and the index could fall to the strong support at 101.
The first sign of strength will be a break and close above the 20-day EMA. That will signal the start of a stronger relief rally to 104.55 and then to the 50-day SMA (105.41).
Bitcoin price analysis
Bitcoin is in a strong uptrend. The bears were unable to pose any challenge at $40,000, showing that the bulls are having their way.
The strong rally in recent days has brought the RSI into the overbought zone, indicating that a small correction or consolidation is possible. Sometimes when the trend is strong, the RSI tends to stay in overbought territory for an extended period of time. The next upside target is $48,000 as there is no major resistance level in between.
With each rise, the bears find it difficult to stop the rally. If the sellers want to make a comeback, they will have to stop the rally at the current level and drag the BTC/USDT pair below the 20-day EMA ($37,926). That may signal the beginning of a deeper correction.
Ether Price Analysis
Ether (ETH) continued its northward march and jumped above the $2,200 resistance on December 2. If the price closes above this resistance, it will complete a bullish ascending triangle pattern.
The bullish 20-day EMA ($2,063) and the RSI near the overbought zone suggest that the bulls are in control. The triangle breakout target pattern is $3,400. However, the bears may not give up easily and will try to restrict the rally to $2,500 and again to $3,000.
The first sign of weakness will be a break and close below the $2200 breakout level. That will indicate that the breakout may have been a false move. The bears will further strengthen their position if they push the ETH/USDT pair below the 20-day EMA.
BNB Price Analysis
BNB (BNB) has been consolidating in a tight range between $239 and $223 for the past few days, indicating indecision among buyers and sellers.
The descending 20-day EMA ($233) and the RSI just below the midpoint indicate that the bears have a slight advantage. If buyers clear the $239 hurdle, the BNB/USDT pair could gain momentum and rise to $265.
Contrary to this assumption, if the price turns down from $239, the range-bound action may continue for some more time. The selling could intensify if the price falls below $223.
XRP Price Analysis
XRP (XRP) rose above the 20-day EMA ($0.62) on December 2, but the bulls failed to take advantage of this move. This suggests a lack of demand at higher levels.
The XRP/USDT pair formed a large outside candlestick pattern on December 4, indicating a tough fight between the bulls and the bears. The 20-day EMA ($0.62) is flattening and the RSI is near the midpoint, indicating a balance between supply and demand. That suggests the pair may fluctuate between $0.67 and $0.56 for a while.
If buyers push the price above $0.67, the pair may rise to $0.74. Instead, if the price falls below $0.56, the pair could fall to $0.46.
Solana Price Analysis
Buyers are trying to push Solana (SOL) above the overhead resistance at $68.20 and invalidate the bearish head and shoulders pattern.
The failure of a bearish pattern is a bullish signal as it traps aggressive bears, resulting in a short squeeze. Along with that, buyers who have been on the sidelines due to the negative setup are jumping in to buy. If the bulls push the price above $68.20, the SOL/USDT pair could rise to $85.
On the other hand, if the bears want to avoid the rise, they will have to quickly lower the price below the 20-day EMA ($57). That could open the doors to a retest of the crucial support at $51.
Related: BTC Price Levels to Watch as Bitcoin Whales ‘Lure’ Market to $42K
Cardano Price Analysis
Buyers pushed Cardano (ADA) above the overhead resistance at $0.40 on December 4, but are struggling to hold the higher levels.
The long wick on the day’s candle shows that the bears have not given up and are selling on rallies. If the price settles below $0.40, the bears will try to further strengthen their position by pushing the ADA/USDT pair below the 20-day EMA ($0.38). If this support is broken, the pair may fall to the 50-day SMA ($0.34).
On the upside, a close above $0.40 could take the price to $0.42 and subsequently to the 52-week high near $0.46. This level is likely to attract heavy selling from the bears, but if buyers bulldoze their way in, the pair may shoot up to $0.52.
Dogecoin Price Analysis
Dogecoin (DOGE) has seen a strong recovery over the past few days. The bulls pushed the price above $0.09 on December 4, indicating strong demand at higher levels.
Both moving averages are upward sloping and the RSI is close to the overbought zone, indicating that the path of least resistance is to the upside. The next DOGE/USDT pair could rise to the psychological level of $0.10. Sellers are expected to mount a strong defense in the area between $0.10 and $0.11.
The 20-day EMA ($0.08) remains the critical level to watch on the downside. A breakout and close below will suggest that the bulls are taking profits. That can sink the pair to the 50-day SMA ($0.07).
Chain price analysis
Chainlink (LINK) is in an uptrend. Buyers bought on the dip, pushing the price to the local high of $16.60. This is an important level to pay attention to.
The rising moving averages and the RSI in positive territory indicate that the bulls are in control. If they push the price above $16.60, the LINK/USDT pair could signal the resumption of the uptrend. The pair could then run towards $18.30.
Instead, if the price declines from $16.60, it will indicate that the bulls remain active at higher levels. The first sign of weakness will be a break and close below the 20-day EMA ($14.58). That could lower the price to $13.
