Bitcoin bulls made an attempt to revive the cryptocurrency on December 27, but encountered stiff resistance at higher levels, intensifying uncertainty around its future price movement. This selling pressure has led to increased speculation that Bitcoin might drop below the critical $90,000 mark, especially after failing to breach the $100,000 benchmark.
Notably, United States Bitcoin exchange-traded funds (ETFs) saw a resurgence in investor interest with net inflows of $475.2 million recorded on December 26, after four days of continuous outflows amounting to $1.52 billion. However, skepticism remains as Aksel Kibar, a Chartered Market Technician, pointed out that Bitcoin may be forming a bearish head-and-shoulders pattern, which could potentially drive its price down to $80,000 if the pattern completes.
With Bitcoin’s outlook appearing tepid, some market analysts are shifting their focus to altcoins, suggesting they may offer more favorable risk-to-reward opportunities. They predict altcoins might outperform in 2025, provided the current trend continues.
In terms of technical analysis, Bitcoin has fallen below its 50-day simple moving average (SMA) at $95,406, a signal that bears might be regaining control. Should the price close below the 50-day SMA, the BTC/USDT pair could fall to a strong support level at $90,000, which bulls are expected to defend vigorously. A breach of this level could result in a further decline to $85,000 and then to $73,777. On the upside, bulls would need to push Bitcoin above $100,000 to regain dominance, potentially setting the stage for a rally to its all-time high of $108,353.
Ether also faced resistance, turning down from its 20-day EMA at $3,540 on December 25, with another recovery attempt blocked on December 27. Further declines could see the ETH/USDT pair test immediate support at $3,200, with crucial support between $3,000 to $2,850 needing robust defense from buyers. To suggest a reduction in selling pressure, bulls would need to sustain price above the 20-day EMA, potentially fueling momentum for a rise towards the $4,094 resistance level.
XRP’s recent performance included a close below the 20-day EMA at $2.23 on December 26, hinting at another possible slide towards the support line. In a symmetrical triangle pattern, the XRP/USDT pair might fluctuate between the support and resistance lines before a decisive breakout. A break above the resistance could propel XRP to $2.91, while a drop below support could result in a descent to $1.62.
BNB faced challenges as well, unable to break past the $722 overhead resistance on December 27. A continued failure to rise above this level could see the BNB/USDT pair drop first to the 20-day EMA at $689, then potentially to the 50-day SMA at $668, before reaching the solid support at $635.
Solana’s negative trend remains apparent, having turned down from the 20-day EMA of $203 on December 25. If the SOL/USDT pair breaches the uptrend line, the bears could take control, driving the price down to $155, where new buyers might emerge.
Dogecoin struggled to surpass its 20-day EMA of $0.35 during a relief rally, and if it breaks through the minor support at $0.30, it could fall further to the 61.8% Fibonacci retracement level of $0.27.
Meanwhile, Cardano experienced a turn down from the H&S pattern neckline, as bears continued to exert pressure. Support around $0.80 is critical, and a rebound could signify the start of a rally.
Avalanche’s recovery was short-lived as it stumbled at the moving averages, emphasizing bearish sentiment. Its pair with the dollar prioritized support levels at $35.50 and $33.50. Finally, Chainlink broke below its $23 support, suggesting continued pressure from the bears, with solid support expected at $20.
Each of these cryptocurrencies faces its unique challenges and support levels, highlighting the varied strategies required to navigate the current market volatility.
