Bitcoin fails to rebound as selling pressure continues

Short-term holders rush to sell Bitcoin

Bitcoin (BTC) has failed to make a strong recovery following its fall on December 11, indicating ongoing selling pressure. Recent data from Glassnode shows that short-term holders, who have held Bitcoin for 155 days or less, sent a total of $1.93 billion worth of Bitcoin to exchanges on December 11 and $2.08 billion on December 12. This rush to sell suggests that speculators are eager to offload their holdings.

Buyers attracted to lower price levels

Despite the selling pressure, lower price levels are attracting buyers. Trading resource Material Indicators has suggested that there could be "institutional sized" bids, although it remains unclear whether this is accumulation or a short-term trading opportunity. It seems that dips are being purchased and rallies are being sold.

Bitcoin on track to hit $50,000

Cointelegraph contributor Marcel Pechman has analyzed derivatives data and believes that Bitcoin is still set to reach $50,000 despite the recent correction. He added that the chances of "cascading liquidations" are low as the correction seems to be driven by the spot market rather than derivative trading.

Important support levels and potential relief rally for Bitcoin and altcoins

What are the key support levels for Bitcoin? Could altcoins also experience a relief rally? Let's analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin has been holding above the 20-day exponential moving average ($40,870), but there has been a lack of strong relief rally. The negative divergence on the relative strength index (RSI) suggests that the positive momentum may be slowing down. If the 20-day EMA breaks down, Bitcoin could fall to the 50-day simple moving average ($37,707). On the other hand, if the bulls manage to push the price to the overhead resistance at $44,700, the pair could soar to $48,000.

Ether price analysis

Ether (ETH) has experienced a shallow bounce off the strong support at $2,200, indicating a lack of demand at lower levels. If the price falls below the 20-day EMA ($2,192), the selling could accelerate and the ETH/USDT pair could tumble to the 50-day SMA ($2,029). However, a rise above $2,250 would suggest continued buying at lower levels and could lead to a retest of the 52-week high at $2,403.

BNB price analysis

BNB's (BNB) price action has formed an inverse head-and-shoulders pattern, which will complete on a break and close above the neckline near $275. The 20-day EMA ($238) has turned up, indicating that bulls have the upper hand. If the bulls can overcome the resistance at the neckline, the BNB/USDT pair could start a new up move toward the pattern target of $333. However, a break below the moving averages would suggest that the bulls are losing control and the pair may drop to the vital support at $223.

XRP price analysis

XRP's (XRP) pullback was stalled at the 50-day SMA ($0.62) on December 11, but the price failed to rise above the 20-day EMA ($0.63). If the price falls below the 50-day SMA, sellers will try to push it to the critical support at $0.56. However, if buyers push the price above $0.67, the XRP/USDT pair could climb to the overhead resistance at $0.74.

Solana price analysis

Solana (SOL) experienced a brief recovery from the 20-day EMA ($64.46) on December 11, but the bulls were unable to sustain the momentum. The negative divergence on the RSI suggests weakening bullish momentum. If the price falls below the 20-day EMA, the selling could accelerate and the SOL/USDT pair may drop to the 50-day SMA ($53.73). On the other hand, a turnaround at the current level would indicate that the bulls are defending the 20-day EMA, with a potential rise to $78.

Cardano price analysis

Cardano (ADA) is consolidating its gains between $0.65 and the 50% Fibonacci retracement level of $0.51. The upsloping moving averages and the overbought RSI suggest that the path of least resistance is to the upside. If the bulls manage to push the price above $0.65, the ADA/USDT pair could start the next leg of the uptrend toward $0.70 and then $0.78. However, a break below $0.51 and the 20-day EMA ($0.47) would be a bearish sign.

Dogecoin price analysis

Dogecoin (DOGE) turned down from the overhead resistance of $0.11 on December 11 and dipped to the 20-day EMA ($0.09) on December 13. A strong bounce off the 20-day EMA would suggest continued buying on dips. The bulls will then attempt to overcome the obstacle at $0.11. If they succeed, the DOGE/USDT pair could surge to $0.14 and later to $0.16. However, if the price breaks below the 20-day EMA, the pair could slide to the 50-day SMA ($0.08) and subsequently to $0.07.

Avalanche price analysis

Avalanche (AVAX) broke above the overhead resistance of $38 but failed to sustain the higher levels. However, buyers aggressively purchased the dip to the 38.2% Fibonacci retracement level of $34.36. If the rebound continues, the AVAX/USDT pair could retest the high at $42.89. On the other hand, a drop below $34.36 would suggest that bears view rallies as selling opportunities, with a potential downside target of the 20-day EMA ($28.22).

Polkadot price analysis

Polkadot's (DOT) rally stalled below the overhead resistance of $7.90, indicating profit-booking by short-term traders. A bounce off the 20-day EMA ($6.19) would suggest positive sentiment and buying on dips. The bulls will then attempt to clear the hurdle at $7.90. However, a break below the 20-day EMA could sink the pair to the 50-day SMA ($5.35).

Polygon price analysis

Polygon's (MATIC) rise above $0.89 was short-lived as the bears pulled the price back below the level. If the price falls below the 20-day EMA ($0.83), it could indicate a deeper correction toward $0.70. However, a sharp turnaround from the current level and a rise above $0.89 would suggest solid buying at lower levels, with the potential for a climb to $0.95 and then $1.

Note: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.