Investors have faced a tumultuous year in 2022 as stocks, bonds, and the cryptocurrency sector have all witnessed sharp declines. As of Nov. 30, the performance of a traditional portfolio comprising 60% stocks and 40% bonds has been the worst since 1932, according to a report by Financial Times.
The next big question troubling crypto investors is whether the pain in Bitcoin (BTC) is over or will the downtrend continue in 2023.
Analysts seem to be divided in their opinion for the first quarter of the new year. While some expect a drop to $10,000 others anticipate a rally to $22,000.
Could Bitcoin and altcoins start a recovery in the short term? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin slipped below the immediate support of $16,559 on Dec. 28. This indicated that the tight range had resolved in favor of the bears. The next support on the downside is $16,256.
If the price turns down from the 20-day exponential moving average ($16,820), the possibility of a break below $16,256 increases. The BTC/USDT pair could then dive to the $16,000 and $15,476 support zones.
Conversely, if the price turns up from the current level and breaks above the moving averages, it will suggest strong buying at lower levels. That could trigger a rally to the $18,000 to $18,388 zone.
ETH/USDT
Ether (ETH) continues to trade between the support at $1,150 and the 20-day EMA ($1,218). This suggests that the sentiment remains negative and traders are selling on rallies.
The bulls successfully defended this level on two previous occasions, hence they may try to do that again. If they can pull it off, the pair may extend its range-bound action between $1,075 and $1,352 for a few more days.
On the other hand, if bears sink the price below $1,075, the pair could fall to the psychologically critical level of $1,000 and later to the pattern target of $948.
BNB/USDT
BNB (BNB) continues to trade in a tight range near the overhead resistance zone between $250 and $255. This suggests that both the bulls and the bears are battling it out for supremacy.
If buyers kick the price above $255, several short-term bears may get trapped. They may then hurry to close their positions, which could catapult the BNB/USDT pair to the 50-day simple moving average ($272).
Contrarily, if the price turns down and slips below $236, the pair may drop to $220. This level may act as a minor support but if it gives way, the pair could nosedive to $200.
XRP/USDT
XRP (XRP) bounced off the support line of the symmetrical triangle on Dec. 29 but the bulls could not start a recovery. The bears maintained their grip and again pulled the price to the support line on Dec. 30.
Alternatively, if the price rebounds off the current level, the bulls will try to propel the pair above the 20-day EMA ($0.36). If they do that, the pair could ascend to the resistance line of the triangle.
DOGE/USDT
There was a weak attempt from the bulls to defend the important support at $0.07 on Dec. 29. The bears kept up the selling pressure and pushed Dogecoin (DOGE) below the key support on Dec. 30.
If bulls want to prevent the decline, they will have to quickly thrust the price back above the breakdown level at $0.07. That could trap the aggressive bears, resulting in a short squeeze. The pair could first rise to the 50-day SMA ($0.09) and thereafter climb to $0.11.
ADA/USDT
Cardano (ADA) tumbled below the support at $0.25 on Dec. 29, indicating that the downtrend remains in force. The fall has pulled the RSI into the oversold zone, suggesting that a relief rally or a consolidation is likely in the next few days.
Conversely, if the recovery off the support line is shallow, it will suggest a lack of demand from the bulls. The bears will then try to sink the price below the support line and pull the pair to $0.20.
MATIC/USDT
Polygon (MATIC) remains stuck inside a large range between $0.69 and $1.05. The bears pulled the price below the immediate support of $0.75 on Dec. 30, opening the doors for a drop to $0.69.
Contrary to this assumption, a weak rebound off $0.69 could embolden the bears and enhance the prospects of a breakdown. If that happens, the pair could start a new down move that could reach $0.52.
If bulls want to avoid the downtrend, they will have to quickly push the price above the moving averages.
Related: Solana joins ranks of FTT, LUNA with SOL price down 97% from peak — Is a rebound possible?
DOT/USDT
Polkadot (DOT) remains in a firm bear grip. The bulls are trying to arrest the decline near $4.22 but have failed to achieve a meaningful bounce. This increases the likelihood of the resumption of the down move.
On the upside, a rally above the 20-day EMA ($4.65) will be the first indication of strength. The DOT/USDT pair could then attempt a rally to the downtrend line. The bulls will have to overcome this barrier to signal a potential trend change.
LTC/USDT
Litecoin (LTC) fell below the moving averages on Dec. 27 and continued its pullback on Dec. 28. The price bounced off the lower levels on Dec. 29 and has reached the 20-day EMA ($68).
This is an important level to keep an eye on in the near term because if it fails to hold, the selling could accelerate and the pair could plunge to $56.
On the contrary, if buyers propel the price above the moving averages, the pair could climb to the overhead resistance at $75.
UNI/USDT
Uniswap (UNI) broke below the support line of the symmetrical triangle pattern on Dec. 28. This suggests that the uncertainty between the bulls and the bears has resolved in favor of the sellers.
If the price dips below $4.97, the next stop could be $4.71 and then $4.60. This negative view could be invalidated in the near term if the UNI/USDT pair re-enters the triangle and breaks above the moving averages.
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.
Market data is provided by HitBTC exchange.
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