Price analysis 12/21: BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, DOT, LTC, UNI
As the year comes to an end, investors will be keenly watching for a Santa Claus rally on Wall Street as many believe that if the rally does not happen, the next year may either remain flat or turn negative.
Jurrien Timmer, director of global macro at asset management giant Fidelity Investments, tweeted on Dec. 19 that the United States equities markets may remain “sideways” and choppy in 2023. He expects “one or more retests of the 2022 low, but not necessarily much worse than that.”
The cryptocurrency market has been largely correlated with the S&P 500 in 2022. Unless both markets decouple, the sideways or negative action in the equities markets may not bode well for the cryptocurrency market.
Analysts remain divided on the future price action for Bitcoin (BTC). While some expect a recovery, others anticipate another leg lower. Let’s study the charts of the top-10 cryptocurrencies to determine the path of least resistance in the short term.
Although Bitcoin has been trading below the 20-day exponential moving average ($16,985) since Dec. 16, the bears have not been able to capitalize on this situation. This suggests that lower levels are attracting buyers.
The BTC/USDT pair saw slight gains on Dec. 20 and reached the 20-day EMA. This is an important level for the bears to defend in the short term because a break above it could set the stage for a possible rally to $17,622 and then to $18,387.
Alternatively, if the price turns down from the moving averages and breaks below $16,256, the selling may accelerate and the pair could dive to $16,000 and thereafter retest the pivotal level of $15,476.
The flattish 20-day EMA and the relative strength index (RSI) near 47 do not give a clear advantage either to the bulls or the bears.
Read more on cointelegraph.com
