Bitcoin’s (BTC) rally has been taking a breather for the past few days but its strong rally in 2023 has not gone unnoticed. A survey of United States financial services companies by crypto firm Paxos showed that 99% of the firms were putting as much or more focus on crypto projects this year as compared to previous years.
Analysts are increasingly bullish on Bitcoin and the crypto space in 2024. Bitwise senior research analyst Ryan Rasmussen made ten predictions for the crypto industry in 2024 in an X (formerly Twitter) post on Dec. 13. He believes Bitcoin will soar to $80,000 in 2024 and “more money will settle using stablecoins than using Visa.”
Along with crypto-specific issues, expectations of rate cuts by the Federal Reserve in 2024 are adding to the bullish sentiment. Arthur Hayes, the former CEO of crypto exchange BitMEX, reiterated his bullish view on crypto in an X post on Dec. 14. He said that the fiat was “a filthy piece of trash” and there was no reason not to be long crypto.
What are the vital support levels that could arrest the fall in Bitcoin and altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin has been stuck between the downtrend line and the 20-day exponential moving average ($41,221) for the past few days. This tightening of the price action suggests that a range breakout is possible in the short term.
If the price turns down and breaks below the 20-day EMA, it will signal that the bulls are aggressively booking profits. That could sink the BTC/USDT pair to the 50-day simple moving average ($38,050). Buyers are expected to fiercely defend this level.
Alternatively, if the price bounces off the 20-day EMA and pierces the downtrend line, it will signal that the bulls remain in control. The pair could rise to the 52-week high at $44,700 and if this level is cleared, the next stop is likely to be $48,000.
Ether price analysis
Ether (ETH) rebounded off the $2,200 support on Dec. 13, but the relief rally is facing selling near $2,332. This suggests that bears are selling on rallies.
The negative divergence on the RSI also suggests that the bullish momentum is slowing down. Sellers will try to strengthen their position by pulling the price below $2,200. If they manage to do that, the ETH/USDT pair could tumble to the 50-day SMA ($2,049) and later to the solid support at $1,900.
Contrarily, if the price once again rebounds off $2,200, it will suggest that the bulls have flipped the level into support. That will increase the likelihood of a rally to $3,000.
BNB price analysis
The bulls are struggling to push BNB (BNB) above the overhead resistance at $260, but a minor positive is that they have not ceded ground to the bears.
The gradually upsloping 20-day EMA ($240) and the RSI in the positive territory indicate advantage to buyers. If the price turns up from the current level or rebounds off the 20-day EMA, the bulls will again attempt to drive the price to the neckline of the inverse head-and-shoulders pattern.
Instead, if the price dips below the moving averages, it will suggest that the bulls are losing their grip. The pair may then slump to the strong support at $223, indicating a range-bound action between $223 and $260.
XRP price analysis
XRP (XRP) is witnessing a tough battle between the bulls and the bears at the moving averages.
The flat 20-day EMA ($0.63) and the RSI near the midpoint suggest a balance between supply and demand. If the price closes below the moving averages, the XRP/USDT pair could slide to $0.56. This is an important level for the bulls to defend because a break below it could yank the pair to $0.46.
If the price rebounds off the moving averages, the pair will again attempt to rally above $0.67. If that happens, the pair could surge to $0.74. The bears are expected to mount a strong defense at this level.
Solana price analysis
Solana (SOL) bounced off the 20-day EMA ($66) on Dec. 13 and rose above the overhead resistance at $78 on Dec. 15.
If buyers sustain the breakout, the SOL/USDT pair is likely to jump to the psychological level of $100. The upsloping moving averages signal advantage to the bulls but the negative divergence on the RSI cautions that the bullish momentum may be weakening.
The crucial support to watch on the downside is the 20-day EMA. A break and close below the 20-day EMA could hit the stops of several short-term traders. That may start a pullback to the 50-day SMA ($55).
Cardano price analysis
Cardano (ADA) turned up from the 50% Fibonacci retracement level of $0.51 on Dec. 11 and surged above $0.65 on Dec. 13.
If buyers maintain the price above $0.65, the ADA/USDT pair could reach $0.70 and subsequently $0.78. However, the risk of a correction looms large as the RSI has been trading in the overbought territory for the past several days.
The first sign of weakness will be a drop below $0.61. That may start a pullback toward the 20-day EMA ($0.51). This remains the key level to watch out for because a break below it will indicate a trend change in the near term.
Dogecoin price analysis
Dogecoin (DOGE) bounced off the 20-day EMA ($0.09) on Dec. 13 but the bulls are finding it hard to push the price above the $0.10 level.
The bears will try to pull the price below the 20-day EMA. If they do that, the selling could intensify and the DOGE/USDT pair may slump to the 50-day SMA ($0.08). This level may act as a support but if broken, the pair may decline to $0.07.
Both moving averages are sloping up and the RSI is in the positive territory, indicating that buyers hold the edge. If the price rebounds off the 20-day EMA, it will suggest that bulls continue to buy the dips. That will increase the likelihood of a rally to $0.11.
Related: US dollar hits 4-month low as Bitcoin trader predicts 10% drop to come
Avalanche price analysis
Avalanche (AVAX) snapped back from the 38.2% Fibonacci retracement level of $34.36 on Dec. 13, indicating that the buyers are not waiting for a deeper correction to buy.
The bulls are trying to push the price above the overhead resistance of $42.89. If they can pull it off, the AVAX/USDT pair could start the next leg of the uptrend. The next target objective on the upside is $50 and then $70.
The risk to the upside is that the RSI is trading in deeply overbought levels. That suggests the pair is vulnerable to a correction or consolidation in the short term. If the price turns down from $42.89, the pair could slide to the 20-day EMA ($30.40).
Polkadot price analysis
The bulls again tried to push Polkadot (DOT) above the overhead resistance of $7.90 on Dec. 14, but the bears held their ground.
The repeated failure of the bulls to clear the overhead hurdle may have tempted short-term traders to book profits. Although the bulls purchased the dip on Dec. 14, they could not sustain the higher levels. Renewed selling on Dec. 15 is threatening to sink the DOT/USDT pair to the 20-day EMA ($6.43).
A strong rebound off the 20-day EMA will suggest that the sentiment remains positive. The bulls will then again try to propel the pair to $7.90. The short-term trend will turn bearish on a break below the 20-day EMA.
Polygon price analysis
Polygon (MATIC) has been trading near $0.89 since Dec. 12, but the bulls have failed to drive the price above the resistance. This suggests that the bears are aggressively defending the level.
The 20-day EMA ($0.84) is the important support to watch out for. If the price rebounds off the 20-day EMA, it will indicate that lower levels are being bought. That will improve the prospects of a rally above $0.89. If this resistance is overcome, the MATIC/USDT pair could soar to $1.
On the other hand, if the price slips below the 20-day EMA, it will suggest that the bulls have given up in the short term. That may start a fall to the 50-day SMA ($0.78) and thereafter to the solid support at $0.70.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.