BTC, ETH, SOL, BNB, XRP, ADA, AVAX, DOGE, DOT, LINK

Bitcoin (BTC) is hovering near overhead resistance above $44,700, indicating some bearish resistance. However, the downside appears to be safe as traders expect one or more positions in Bitcoin exchange-traded funds (ETFs) to be approved by the regulator in January. The event is expected to give a big boost to the crypto space.

The approval of the spot Bitcoin ETF, if it comes, will cause initial momentum, but after that, traders can turn their attention to actual ETF demand. “Demand for the BTC Spot ETF will initially be lower than market expectations,” trading firm QCP Capital said in a market update. That can cause traders to take profits and start pulling back.

It is always difficult to predict the short-term market reaction to major events, but speculation tends to book profits. Sometimes, the profit bond is only after the event, and in other cases, it happens after the raise. But after the initial pullback, the prevailing trend generally continues.

Will Bitcoin and altcoins break above their recent local highs and extend their rally, or will profit-booking lower prices? Let's examine the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin has reached an overhead resistance at $44,700, where the bears will pose a serious challenge. The small advantage over the bulls is that they don't give the bears much ground.

A negative divergence in the Relative Strength Index (RSI) calls for caution, although the upward moving averages indicate gains for buyers. The first sign of weakness would be a close below the 20-day moving average ($42,103). The BTC/USDT pair may fall to $37,980.

Conversely, if the price breaks from the current level or the 20-day EMA and rises above $44,700, it indicates the beginning of the next uptrend. The pair can collect around $48,000 and eventually around $50,000.

Ether price analysis

The bulls pushed Ether (ETH) above the 20-day EMA ($2,221) on December 21, indicating that the correction may be over.

If the price holds above $2,332, the next stop could be the 52-week high at $2,403. This is a very important zone for bears to protect because a break above it and a close can start the next leg of the uptrend. The ETH/USDT pair may rise to $3,000.

Conversely, if price breaks above overhead resistance, the pair could retest the necessary support at $2,200. The bears need to pull and sustain the price below $2,200 to weaken the bulls.

Solana price analysis

Solana (SOL) broke out of its 20-day EMA ($74) on December 18 and topped $100 on December 22, indicating strong bull buying.

The SOL/USDT pair may witness a sell-off near $100, but if bulls don't give up too much space, the upside is likely to continue. If buyers drive the price above $100, the pair could start a trip to $143.

Although the recent rally has erased negative divergences, the RSI remains in overbought territory. This suggests that the rally may be overheated in the near term and may undergo a minor correction or consolidation. On the downside, the first support is $80, and then the 20-day EMA. A slide below this level suggests the bulls are losing their grip.

BNB price analysis

BNB (BNB) pierced the $260 resistance on December 20, indicating that the bulls are in the driver's seat.

The bulls continued their buying and pushed the price to the neckline on December 21 in an inverse head and shoulders pattern. This level indicates strong selling by the bears, but the bulls won and pushed the price above the neckline. , the BNB/USDT pair completes the reversal H&S pattern. This bullish setup target is $333.

On the downside, the closest support is $260, and then the 20-day EMA ($248). The bears need to drag the price below the 20-day EMA to weaken the momentum.

XRP price analysis

XRP (XRP) has been oscillating between $0.56 and $0.74, indicating indecision between bulls and bears.

Both moving averages have extended, and the RSI is near the midpoint, suggesting that range-bound action may extend for a few more days. If the bulls push the price above the moving averages, the pair could increase to $0.67 and then to $0.74. The bears defend this level vigorously.

On the contrary, if the price is reduced from the moving averages, it indicates that the bears are selling in small rallies. The XRP/USDT pair may decline to critical support at $0.56.

Cardano price analysis

Cardano (ADA) rose above the $0.62 minor resistance on December 21. Buyers will try to increase the price of the next 52-week high of $0.68.

However, the bears did not give up yet. They are trying to stop the recovery at $0.65. To signal a trend reversal, sellers need to break below the 20-day EMA ($0.55). ADA/USDT pair may drop to $0.50.

Contrary to this assumption, if the price reverses from the current level or pulls back from the 20-day EMA, it suggests that bulls are in control. A break above $0.68 opens the door to a rally to $0.78.

Price analysis

Avalanche (AVAX) rose above resistance at $45.33 on December 16, indicating the start of the next leg of the uptrend.

The move to the upside may face a small hurdle at $50. If the price declines from this level but does not fall below $38, it indicates that the sentiment remains positive and traders are buying dips. That improves the prospect of a rally above $50. If that happens, the AVAX/USDT pair could rise to $70.

The overbought trend on the RSI suggests that the rally is overheated in the near term, and could be strengthened or corrected. The bears need to break below $38 to take control.

Related: Bitcoin $42K As Buyers Enter BTC Price Beats US PCE Inflation

Dogecoin price analysis

Dogecoin (DOGE) is seeing a fierce battle between bulls and bears near the 20-day EMA ($0.09).

The bulls pushed the price above the 20-day EMA on December 21 but are struggling to sustain higher levels. If the bearish price breaks below the 20-day EMA, the DOGE/USDT pair may drop to the 50-day SMA ($0.08) and then to $0.07.

Buyers should pay the $0.10 to $0.11 protection zone to maintain the price. The pair may hold momentum above $0.11 and rise to $0.16.

Polkadot price analysis

Polkadot (DOT) broke above the 20-day EMA ($6.89) on December 20 and rose above the $7.90 resistance on December 21, indicating a continuation of the upward move.

The bears will not give up easily and will try to return the price below $7.90 and catch the aggressive bulls. If they manage to do that, the DOT/USDT pair could witness a long liquidity run. The pair may descend towards the 20-day EMA.

Alternatively, if the price rebounds from $7.90, it suggests that the bulls have reversed the level to support. That raises the rally to $10.

Chainlink price analysis

Chainlink (LINK) rallied to close above the 20-day EMA ($14.87) on December 21 after repeated failed attempts, indicating that the bulls are making a comeback.

The LINK/USDT pair may rise to $16.60 and then retest the 52-week high at $17.32. If the bulls overcome this resistance, the pair will continue to rise. The next target is at $20.35.

Instead, if the price falls significantly below the resistance above, it suggests that bears are sellers in the rally. The pair can then extend the hold in the larger range between $12.85 and $17.32 for a few more days.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.