Bitcoin (BTC) Shows Signs of Rally, Analysts Bullish on Price
Bitcoin (BTC) saw a 9% rally in November, but struggled to break through the $38,000 resistance level. Despite repeated attempts by buyers to maintain the price above $38,000, bears have held their ground. Looking at historical data, Bitcoin only saw a rise in December in 2020, with an impressive 46.92% increase. Analysts are optimistic that Bitcoin could replicate some of that performance this year.
In a research note, Standard Chartered suggested that the approval of spot Bitcoin exchange-traded funds could potentially push the price of Bitcoin to $100,000 by the end of 2024. Galaxy Digital CEO Mike Novogratz also expressed positivity about Bitcoin, mentioning that asset managers with approved ETFs will work to convince people to invest in Bitcoin, which could lead to increased adoption. Additionally, the Federal Reserve cutting rates could act as a trigger for Bitcoin’s price to reach its all-time high by next year.
To determine whether Bitcoin can sustain above $38,000 and rally to $40,000, let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin Price Analysis
The Bitcoin price has been testing the $38,000 resistance level multiple times. On December 1st, the price broke above and completed an ascending triangle pattern. This indicates a potential uptrend with a target of $41,160. The rising moving averages and RSI above 65 suggest that bulls are in control. However, if the price turns down and dips below the uptrend line, it could invalidate the bullish setup and signal a bearish trend.
Ether Price Analysis
Ether (ETH) rebounded off the 20-day EMA ($2,019), indicating strong support at that level. The bulls will attempt to push the price to the overhead resistance at $2,200. If they succeed, an ascending triangle pattern will be completed, with a target objective of $3,400. The 20-day EMA serves as an important support level, and a break below it could signal a loss of bullish momentum.
BNB Price Analysis
BNB has been trading within a tight range between $223 and $239, indicating uncertainty among buyers and sellers. The downsloping 20-day EMA and negative RSI suggest that bears have control. If the price turns down from the 20-day EMA, it could drop below $223, starting a decline to $203. However, a break above the 20-day EMA could lead to a rise to $239.
XRP Price Analysis
XRP has been holding onto the 20-day EMA ($0.61), indicating that buyers are stepping in at minor dips. If the price breaks above the 20-day EMA, it will suggest a shift in favor of the bulls. The XRP/USDT pair may rise to $0.64 and later to $0.67. However, if buyers fail to push the price above the 20-day EMA, it could indicate resistance from sellers and lead to a drop to $0.56.
Solana Price Analysis
Solana (SOL) saw a rally to $62, but bears were unable to sustain the price below $59. The upsloping 20-day EMA and positive RSI indicate that bulls have the upper hand. If the price breaks above $62.10, it could reach $68. However, a break below the 20-day EMA could lead to a drop to $51.
Cardano Price Analysis
Cardano (ADA) has been supported by the 20-day EMA ($0.37), but the bulls are struggling to start a strong rebound. The price is squeezed between the 20-day EMA and the overhead resistance at $0.40. The gradually upsloping 20-day EMA and the RSI above 58 suggest that bulls have an edge. A break above $0.40 could lead to a jump to $0.42 and $0.46. However, a drop below the 20-day EMA could indicate profit-booking by short-term traders and lead to a decline to $0.34.
Dogecoin Price Analysis
Dogecoin (DOGE) has maintained above $0.08, indicating that bulls are in control. The rising 20-day EMA and RSI above 62 support this view. Buyers will attempt to push the price to the psychological resistance at $0.10, with a minor obstacle at $0.09. However, sellers are expected to defend the $0.10 to $0.11 zone. The 20-day EMA serves as crucial support, and a break below it could lead to a drop to the 50-day SMA ($0.07).
Toncoin Price Analysis
Toncoin (TON) has been sustaining above the 20-day EMA ($2.38), but the up-move lacks momentum. The 20-day EMA is gradually sloping up, and the RSI is near 55, indicating a slight edge for the bulls. If the price breaks above $2.59, it could complete an ascending triangle pattern with a target objective of $3.58. However, a slide below the uptrend line could invalidate the bullish setup and lead to a decline to the next major support at $1.89.
Chainlink Price Analysis
Chainlink (LINK) has been squeezed between the 20-day EMA ($14.19) and the overhead resistance at $15.40. The upsloping 20-day EMA and positive RSI suggest a path of least resistance to the upside. If the price breaks above $15.40, it could climb to $16.60 and $18.30. However, a break below the 20-day EMA could lead to a decline toward the 61.8% Fibonacci retracement level at $12.83.
Avalanche Price Analysis
Avalanche (AVAX) saw a break above the $22 resistance, indicating strong demand at higher levels. If the price closes above $22, it increases the likelihood of a rally to $24.69. However, sellers are expected to defend this level. The 20-day EMA serves as crucial support, and a break below it could lead to a drop to $20.42.
Overall, the charts of the top 10 cryptocurrencies show mixed signals, with some indicating bullish momentum and others suggesting possible corrections. Bitcoin’s ability to sustain above $38,000 will be key in determining its rally to $40,000. Analysts remain optimistic about Bitcoin’s future, citing factors such as the approval of spot Bitcoin exchange-traded funds and the Federal Reserve cutting rates as potential triggers for price increases.
