Bitcoin Continues to Rise as Traders Anticipate Further Rally
Bitcoin has seen a significant surge in price, rising more than 10% this week. This indicates that traders are urgently scrambling to buy Bitcoin in anticipation of a further price rally. According to CoinShares data, investors have poured in over $1.44 billion into Bitcoin investment products in the past ten weeks.
Bitcoin ETFs Could Bring in Billions in Income
There are high expectations that the approval of a spot Bitcoin exchange-traded fund (ETF) will attract massive investments. Robby Yung, CEO of Animoca Brands, stated at a conference in Berlin that Bitcoin ETFs could potentially generate an income of "$10 to $12 billion."
Short-Term Bitcoin Holders Book Profits
While long-term investors continue to accumulate Bitcoin, short-term holders (STHs) who have held coins for 155 days or less have been busy booking profits in December. Research and data analyst James Van Straten shared a Glassnode chart, revealing that STHs in profit sent roughly $5 billion worth of Bitcoin to exchanges in the first four days of December.
Will Bitcoin Reach $48,000 or Will Profit-Booking Set In?
As Bitcoin's price continues to soar, the question arises: will it reach $48,000 or will profit-booking take over? To find out, let's analyze the charts of the top 10 cryptocurrencies.
Bitcoin Price Analysis
Bitcoin has been on a strong uptrend, with the price surpassing $40,000 and clearing the minor resistance at $41,160. The rally has pushed the relative strength index (RSI) into overbought territory, indicating a potential correction or consolidation. However, the bulls show no signs of slowing down and may push the price towards the target objective of $48,000, which is expected to act as a strong resistance. Support is likely to be found at the 20-day exponential moving average ($39,0803), and a break below this level could signal a short-term corrective phase.
Ether Price Analysis
Ether's price shows bullish signs, with the long tail on the December 5 candlestick indicating strong buying at lower levels. The moving averages and RSI in the overbought zone suggest that bulls are in control. The break above $2,200 has completed an ascending triangle pattern, potentially leading to a rally to $2,500 and then $2,950. However, bears will attempt to pull the price below $2,200 to trap aggressive bulls, which could result in a fall to the 20-day EMA ($2,104) or the 50-day SMA ($1,940).
BNB Price Analysis
BNB is showing a balanced market between buyers and sellers, with the price potentially rising to $239.20. The flattish 20-day EMA and RSI below the midpoint indicate a balance. A break above $239.20 would favor the bulls and could lead to a climb towards the overhead resistance at $265. On the other hand, a decline below $223 could signal a drop to $203, indicating control by sellers.
XRP Price Analysis
XRP has shown solid buying at lower levels, with the price striving to reach $0.67. The bears will attempt to stall the up-move at that level, while a rebound off the 20-day EMA could improve the prospects of a rally to $0.74. The XRP/USDT pair may remain stuck between $0.56 and $0.74 if sellers aggressively defend the upper level. However, a move below the moving averages could challenge support at $0.56.
Solana Price Analysis
Solana is consolidating in an uptrend, with the bulls holding their ground above $59. The price could further strengthen if it moves above $68.20, invalidating the bearish head-and-shoulders pattern. This could lead to a rally towards $100. On the other hand, a sharp downturn from $68.20 would indicate bearish activity, with a potential fall to the 20-day EMA and the support at $51.
Cardano Price Analysis
Cardano has resolved its recent uncertainty in favor of the bulls, with a close above the $0.40 resistance. The ADA/USDT pair is likely to climb to $0.46, where resistance may set in. However, if the price does not fall below $0.40, it could indicate an upside breakout, potentially propelling the pair to $0.52. A drop below $0.40 would signal weakness and rejection of higher levels, with a further decline to $0.34.
Dogecoin Price Analysis
Dogecoin's price is in an uptrend, with the bulls pushing it above resistance levels. The RSI is deep into the overbought territory, increasing the risk of a short-term pullback or consolidation. If the price remains above $0.09, there is a possibility of a rally to $0.11. However, clearing the $0.11 level may trigger a surge to $0.16. On the downside, a slide below $0.09 could result in the pair oscillating between $0.11 and $0.06.
Avalanche Price Analysis
Avalanche is experiencing bullish sentiment, with traders buying on dips. The price has cleared the overhead resistance at $24.69, opening up the potential for a rally to $28.50 and $31. A move below the breakout level of $22 could trap aggressive bulls, leading to a fall to $18.90.
Chainlink Price Analysis
Chainlink has been trading near the overhead resistance at $16.60, indicating a potential upside breakout. The upward sloping 20-day EMA and RSI above 60 further support this possibility. If $16.60 is scaled, the LINK/USDT pair could reach $18.30. However, a move below the 20-day EMA could sink the pair to the 50-day SMA, with buyers likely to step in at that level.
Toncoin Price Analysis
Toncoin has been trading near the 20-day EMA, showing a lack of demand at higher levels. The 20-day EMA is flattening out, suggesting a balance between supply and demand. A drop below the 50-day SMA could result in a slump to $2. On the upside, breaking the resistance zone of $2.52 to $2.59 would give the bulls the upper hand and potentially lead to a target objective of $3.58.
Please note that this article does not provide investment advice. Readers should conduct their own research before making any investment decisions.
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