Bitcoin has begun the final week of the year with a downturn, as investors remain unsure about purchasing during the dip. Opinions are divided on Bitcoin’s immediate prospects, with some analysts forecasting a rally leading up to the inauguration of U.S. President-elect Donald Trump, while others predict increased volatility. Arthur Hayes, co-founder of BitMEX, offered a contrasting perspective, suggesting a significant downturn could coincide with Trump’s inauguration.
Despite the market uncertainty, MicroStrategy has maintained its acquisition streak, purchasing 2,138 Bitcoin between December 23 and December 29 at an average price of approximately $97,837. Bitcoin’s historical January performance has been inconsistent, with an average gain of just 3.35%, yet it only closed negatively once in the past five years, dropping 16.68% in 2022.
Analyzing the S&P 500 Index, it rose above the 20-day exponential moving average of 5,983 on December 24, but could not hold these levels. Falling below the 20-day EMA on December 27, the index extended the decline past the 50-day simple moving average of 5,941 by December 30. The critical defense point for buyers sits at 5,853, as a breach here could complete a bearish head-and-shoulders pattern, targeting the 5,606 level. Buyers aim to push above the 20-day EMA to regain control, potentially climbing to 6,050.
The US Dollar Index faces a stalemate around the 108 mark, with moving averages hinting at buyer dominance. A rise past 108.55 could lead to a rally to 111. The 20-day EMA at 107 is crucial for support, with a breach suggesting a retreat to 105.
Bitcoin faces profit-taking pressure, risking a drop to its strong support between $85,000 and $90,000. The moving averages’ bearish crossover and a negative RSI signal a bear attempt. Defending this zone could maintain a broad trading range, but a fall below $85,000 may trigger further sales towards the $73,777 mark.
Ether’s price oscillates between $2,850 and $4,094, with resistance at the 20-day EMA. A decline under the uptrend line may pull the price to the $3,000 to $2,850 area, while surpassing the 20-day EMA could target $4,094.
For XRP, the price has hit the symmetrical triangle’s support. A rebound and break above the 20-day EMA at $2.19 suggest prolonged consolidation within the pattern. A breach below hints at a near-term peak, with potential declines to $1.63.
BNB sees a fierce contest between $692 and $722. Falling below the 20-day EMA could activate the $685 to $722 range, while breaching $722 could start an upward move towards $761.
Solana’s price compresses between the uptrend line and the 20-day EMA at $200. A drop below the uptrend line could dive to $133, while a rise above the 20-day EMA indicates waning selling pressure.
Dogecoin holds above $0.30 but struggles at the 20-day EMA. A fall below this could reach $0.23, although a climb above may target $0.38.
Cardano trades below its head-and-shoulders pattern neckline, with potential drops to $0.70. Support here could prevent a fall to $0.50.
Avalanche’s inability to rebound hints that it may have peaked short-term, with bears looking to drive the price under $33.50, falling further to $30.50 if successful. A rise above $40.55 suggests growing demand.
Readers should conduct personal research as the investments involve risk.
