Bitcoin is witnessing profit-booking by short-term holders, but institutional investors continue to put money into BTC investment products.
Price Analysis
Bitcoin (BTC) has been on a tear, rising more than 10% this week. This shows that traders are urgently scrambling to buy Bitcoin as they anticipate the price to rally further. CoinShares data shows that investors have pumped in more than $1.44 billion into Bitcoin investment products in the past ten weeks.
The expectation is that the approval of a spot Bitcoin exchange-traded fund (ETF) will attract huge investments. Animoca Brands CEO Robby Yung, while speaking at the Next Block Expo conference in Berlin, said that Bitcoin ETFs could generate a potential income of “$10 to $12 billion.”
While long-term investors have been accumulating Bitcoin, the short-term holders (STHs) holding coins for 155 days or less have been busy booking profits in December. CryptoSlate research and data analyst James Van Straten, while sharing a Glassnode chart on X (formerly Twitter), said that STHs in profit sent roughly $5 billion worth of Bitcoin to exchanges in the first four days of December.
Could Bitcoin continue its up-move and reach $48,000, or will profit-booking set in? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin has been in a strong uptrend. The momentum picked up after the bulls catapulted the price above $40,000. The minor resistance at $41,160 has been cleared with ease.
The rally of the past few days has sent the relative strength index (RSI) into deeply overbought territory. This usually starts a correction or consolidation, but the bulls are in no mood to slow down. Buyers will try to drive the BTC/USDT pair to the target objective at $48,000, which is likely to act as a formidable resistance.
Any dips from the current level are likely to find support at the 20-day exponential moving average ($39,0803). A break below this level will be the first sign that the traders are rushing to the exit. That may signal the start of a short-term corrective phase.
Ether price analysis
Ether’s (ETH) long tail on the Dec. 5 candlestick shows that the bulls thwarted attempts by the bears to yank the price back below the breakout level of $2,200.
The upsloping moving averages and the RSI in the overbought zone indicate that bulls are in command. The break above $2,200 has completed an ascending triangle pattern, which may start a rally to $2,500 and then to $2,950.
On the other hand, the bears will try to pull the price below $2,200 and trap the aggressive bulls. The ETH/USDT pair could then slide to the 20-day EMA ($2,104). A break and close below this support could open the doors for a fall to the 50-day SMA ($1,940).
BNB price analysis
The bears are trying to defend the moving averages, but the bulls have not given up much ground. This suggests that BNB (BNB) could rise to $239.20.
The flattish 20-day EMA ($232) and the RSI just below the midpoint signals a balance between buyers and sellers. If the price turns down sharply from $239.20, the range-bound action may continue for some more time.
On the other hand, a break above $239.20 will tilt the advantage in favor of the bulls. The BNB/USDT pair could then climb to the overhead resistance at $265. Sellers will seize control if they pull the price below $223. That could start a decline to $203.
XRP price analysis
The bears tried to shove XRP (XRP) back below the 20-day EMA ($0.62) on Dec. 4 and 5, but the long tail on the candlestick shows solid buying at lower levels.
The bulls will strive to kick the price to $0.67, while the bears will try to stall the up-move at that level. On the way down, if the price rebounds off the 20-day EMA, it will improve the prospects of a rally to $0.74. Sellers will try to defend this level aggressively and keep the XRP/USDT pair stuck inside the range between $0.56 and $0.74 for some more time.
Meanwhile, the bears are likely to have other plans. They will try to drag the price back below the moving averages and challenge the support at $0.56.
Solana price analysis
Solana (SOL) is consolidating in an uptrend. The bears tried to pull the price below $59 on Dec. 5, but the bulls held their ground. This shows that the bulls are trying to flip the level into support.
The bulls will try to strengthen their position further by pushing the price above $68.20. If they do that, it will invalidate the bearish head-and-shoulders pattern. The failure of a bearish pattern is a bullish sign as the early bears rush to cover their positions, causing a short squeeze. That could thrust the SOL/USDT pair toward $100.
Alternatively, if the price turns down sharply from $68.20, it will suggest that bears are active at higher levels. The bears will then try to sink the price below the 20-day EMA. If they succeed, the pair could dive to $51.
Cardano price analysis
Cardano (ADA) closed above the $0.40 resistance on Dec. 4, indicating that the uncertainty of the past few days resolved in favor of the bulls.
The ADA/USDT pair is likely to climb to $0.46, where resistance may set in. If the price turns down from this level but does not fall below $0.40, it will enhance the prospects of an upside breakout. The pair may then skyrocket to $0.52.
The first sign of weakness will be a drop below $0.40. That will indicate that markets have rejected the higher levels. The bears will further gain strength if they tug the price below $0.38. The pair may subsequently tumble to $0.34.
Dogecoin price analysis
Dogecoin (DOGE) is in an uptrend. The bulls pushed the price above the minor resistance of $0.09 on Dec. 4 and followed it up with a move above the $0.10 resistance on Dec. 6.
The sharp rally of the past few days has pushed the RSI deep into the overbought territory, increasing the risk of a short-term pullback or consolidation. If buyers do not allow the price to slip below $0.09, the likelihood of a rally to $0.11 increases.
The bears are expected to defend the $0.11 level with all their might because if cleared, the DOGE/USDT pair could surge to $0.16. Conversely, if the price turns down and skids below $0.09, the pair may oscillate inside the large range between $0.11 and $0.06.
Related: Bitcoin is up 170% since the ECB called its ‘last gasp’ at $16.4K
Avalanche price analysis
Avalanche (AVAX) bounced off the 20-day EMA ($21.29) on Dec. 4, indicating that the sentiment remains bullish and traders are buying on dips.
Buying continued on Dec. 5, and the bulls propelled the price above the overhead resistance at $24.69. This clears the path for a potential rally to $28.50 and thereafter to $31. The bears are expected to mount a strong defense at this level.
Time is running out for the bears. If they want to prevent the upside move, they will have to yank the price back below the breakout level of $22. Such a move may trap the aggressive bulls, resulting in long liquidation. The AVAX/USDT pair could then fall to $18.90.
Chainlink price analysis
Chainlink (LINK) has been trading near the overhead resistance of $16.60 for the past few days, indicating that the bulls are holding on to their positions as they expect an upside breakout.
The 20-day EMA ($14.79) is sloping up, and the RSI is above 60, indicating a high possibility of an upside breakout. If $16.60 is scaled, the bullish momentum could pick up and the LINK/USDT pair could reach $18.30.
If bears want to prevent the upside, they will have to quickly drag the price below the 20-day EMA. That could sink the pair to the 50-day SMA ($13.05). This level is again likely to attract aggressive buying by the bulls.
Toncoin price analysis
Toncoin (TON) has been trading near the 20-day EMA ($2.39) for the past few days, indicating a lack of demand at higher levels.
The 20-day EMA is flattening out, and the RSI is just below the midpoint, suggesting a balance between supply and demand. If the price slips below the 50-day SMA ($2.30), the TON/USDT pair could slump to $2.
On the upside, the bulls will have to drive the price above the $2.52 to $2.59 resistance zone to gain the upper hand. If they succeed, the pair will complete a bullish ascending triangle pattern, which has a target objective of $3.58.
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.
