SPX, DXY, BTC, ETH, BNB, XRP, SOL, ADA, DOGE, AVAX

Bitcoin (BTC) closed last week with a gain of 9.55%, but started the new week on a weak note, falling to $40,500. A sharp correction in Bitcoin has led to liquidity in several altcoins. According to CoinGlass data, cross-crypto long liquidity for December 11 was over $300 million.

A sharp decline will not change the trend in Bitcoin and altcoins, because corrections are part of any growth process. Generally, straight rallies are followed by sharp pullbacks that shake out weak hands and allow long-term investors to buy more at lower levels.

In the year The corrections are unlikely to last much longer due to several bullish stimulus in 2024. Analysts expect one or more Bitcoin exchange-traded funds to receive regulatory approval in January, which could be a game changer. That will halve Bitcoin next April, and finally, expectations of a rate cut by the United States Federal Reserve may boost risk assets. Goldman Sachs expects the Fed to begin cutting rates in the third quarter of 2024.

What are the important stages that can catch a fall in Bitcoin and altcoins? Let's examine the charts to find out.

S&P 500 Index Price Analysis

The bulls have successfully held the S&P 500 Index (SPX) above the 4,541 breakout level for the past several days. This indicates that the buyers are trying to change the level to support.

The upward trend of the 20-day EMA (4,531) and the Relative Strength Index (RSI) indicate that the path of minor resistance near the overbought zone is to the upside. If buyers pierce the profit resistance at 4,650, the index may increase its momentum and rise to 4,800.

If the price declines and falls below the 20-day EMA, this bearish view becomes invalid in the near term. This indicates strong selling at higher levels. The index may drop to its 50-day simple moving average (4,393).

Analysis of the price of the US dollar index

The US Dollar Index (DXY) dropped below the 61.8% Fibonacci retracement level of 102.55 on November 29, indicating overbought lows.

The rally reached the 20-day EMA (104), the bears are adding a strong resistance. A slight positive for the bulls is that it has not allowed the price to drop below the 20-day EMA.

There is a small resistance at 104.50, but if this level is weighed, the indicator may rise to the 50-day SMA (105). The flat 20-day EMA and the RSI near the midpoint suggest a range formation in the near term. Strong support on the side is at 102.46.

Bitcoin price analysis

Bitcoin's tight consolidation near $44,700 on December 11 came close to a collapse. Failure to continue the activity may prompt a sale by the traders.

A slight positive in favor of the bulls is that the price has rebounded from the 20-day EMA ($40,708) as seen from the long tail on the candlestick. Buyers will once again try to lift the BTC/USDT pair above $44,700, but the bears may not give up easily. A negative difference in the RSI warns that the momentum is slowing down.

If the price is below the 20-day EMA, a correction may extend to the $37,980 breakout level. This level can attract strong buying by bulls. On the upside, a break and close above $44,700 indicates that the bulls are back in the driver's seat.

Ether price analysis

Ether (ETH) declined from $2,403 on December 9 and fell below $2,200 on December 11. This shows that the bulls are rushing to the exit.

The price action of the past few days has created a negative divergence on the RSI, indicating that the bullish momentum is weakening. Still, the bulls are trying to defend the 20-day EMA ($2,186).

If the price breaks from the current level, the bulls will try to continue the rally by pushing the ETH/USDT pair above $2,403. If they do this, the pair can raise about $2,500 and later $3,000.

If the price closes below the 20-day EMA, this bullishness will be cancelled. That could extend the correction to the 50-day SMA ($2,012).

BNB price analysis

BNB (BNB) saw a candlestick pattern on the December 11 outside day, indicating a fierce battle between bulls and bears.

A long tail on the intraday candle indicates strong buying at lower levels. If the price sustains above $239.2, the BNB/USDT pair may rise to $265, increasing momentum. This level can be a difficult hurdle to cross, but if the buyers succeed, the pair will complete a head-and-shoulders opposite pattern.

The trend will support bears if the price sinks below $223 and continues. The pair could fall to the key support at $203.

XRP price analysis

XRP (XRP) rose above the $0.67 resistance on December 8, but the bulls failed to build on this breakout on December 9. This indicates selling at a higher level.

The bulls tried again to drive the price above $0.67 on December 10, but the bears held their ground. This dipped below the 50-day SMA ($0.62) on December 11, initiating a sharp pullback.

If the price increases from the current level, it indicates buying on dips. The bulls will try to overcome the barrier again at $0.67. If they do that, the pair can travel to $0.74, the bears are expected to have a strong resistance.

Solana price analysis

Solana (SOL) is facing selling at a barrier above $78. Failure to balance this level may be what started the drag on December 11th.

The SOL/USDT pair is finding support at the 20-day EMA ($63), indicating that lower levels continue to attract buyers. If the bulls support the rebound, the pair could retest the high at $78. A break and close above this level opens the door to a possible rally towards the $100 psychological level.

If the bears want to defend the rally, they need to drag the price below the 20-day EMA. That could initiate a deep correction to critical support at $51.

Related: Is Bitcoin Price Towards $40K a Bear Trap?

Cardano price analysis

On December 9th and 10th, buyers pushed Cardano (ADA) above $0.60 but failed to hold higher levels.

The move over the past few days has pushed the RSI into the overbought zone, indicating that the rally is overbought in the near term. That may have tempted the short-term bulls to book their positions, which started back on December 11th.

The ADA/USDT pair is trying to find support at the 50% Fibonacci retracement level at $0.51. If the level holds, buyers will again try to push the price to the local high of $0.65. On the other hand, a break below $0.51 could sink the pair to the 20-day EMA ($0.45).

Dogecoin price analysis

As seen from the long wick on the December 11 candlestick, the bears are posing a strong challenge to the Dogecoin (DOGE) rally at $0.11.

The price may go down to the 20-day EMA ($0.09), which is an important level to pay attention to. A strong breakout above the 20-day EMA suggests that sentiment remains positive and traders are buying dips. That adds up to a $0.11 breakeven chance. If that happens, the DOGE/USDT pair could jump to $0.15.

Conversely, a drop below the 20-day EMA suggests traders are holding on to profits. The pair may extend the decline towards the 50-day SMA ($0.08).

Price analysis

Avalanche (AVAX) has been on a strong uptrend for the past several days. Buyers easily cleared the barrier at $31 on December 9 and reached $38 on December 10.

The vertical rally pushed the RSI into the overbought territory, indicating that a correction or consolidation is possible in the near term. The price pulled back on December 11, indicating that short-term traders could take profits.

If buyers do not allow the price to slide below $31, the possibility of a rally above $38 will increase. The AVAX/USDT pair may rise to $46 and later to $50. Instead, if the price declines and falls below $31, it suggests a deep correction to the 20-day EMA ($25.85).

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.