Bitcoin is up 115% this year, suggesting that sentiment around cryptocurrencies has improved massively. BitInfoCharts data shows that solid buying in recent months has led to a surge in the number of cryptocurrency wallets holding Bitcoin worth $1 million or more. The platform reports that the figure has shot to 81,920 from 23,785 on January 1.
The crypto market is expected to face increased volatility this week as a result of macroeconomic events. The United States government will release the Producer Price Index report today. Moreover, we should watch out for what happens on Friday. Will the US government shut down partially, or will this be avoided?
Investors view the current price correction as a buying opportunity. That’s because many crypto analysts anticipate a significant rally next year, fueled by Bitcoin spot ETF. Expectations are that the United States Securities and Commission will approve this type of ETF in early January.
Meanwhile, let’s analyze the price charts of the leading cryptocurrencies.
Bitcoin Price Analysis
Bitcoin continues to hold above key resistance levels. However, the bulls are still finding it tough to fuel an upward move, suggesting that demand is drying up at current levels. If BTC crosses below the 20-day Exponential Moving Average (EMA) of $34.875, then a deeper price correction to $32,786 becomes likely. A fall below this price would mean that the bears are growing stronger than the bulls and may pull Bitcoin to the $30,980 support level.
On the positive side, if BTC grows above $37,772, it will improve the chances of a rally to a strong resistance of $40,017.
Ethereum Price Analysis
The bulls are looking to flip the $2,001.94 resistance into support. Although this level was briefly broken earlier today, with the bears dragging Ethereum to $1,986.45, the bulls have since pushed the token to $2,011.23. They will now try to break above the obstacle at $2,201.03. By doing so, ETH could surge to $2,998.78. But if the crypto asset reverses from $2,201.03, it may continue consolidating between $2,001.94 and $2,201.03 for some time.
BNB Price Analysis
BNB continues to consolidate between $238.76 and $257.91. This has caused the Relative Strength Index to get out of the overbought territory, giving room for a new upward movement. BNB is valued at $252.20 as of this writing. Breaking above $257.91 will give the bulls an advantage to thrust the digital currency to $267.03, where a sell-off is expected. But if the BNB bears are defeated here, a rally to $284.89 could happen.
Meanwhile, a decline to the 50-day Simple Moving Average (SMA) of $224.89 seems likely in case the support at $238 is broken.
XRP Price Analysis
Although XRP broke below $0.6703812 a few days ago, the bulls haven’t let it trade below the 20-day Exponential Moving Average of $0.6244912. This is a positive sign which shows the buyers are unwilling to let go of their advantage. If they push XRP above $0.6703812, we could witness a rally to $0.7398210 and even to $0.8400321. This assumption won’t be valid if the Ripple-issued token slides below $0.6244912. That’s because it might collapse to $0.5782104.
Solana Price Analysis
Solana has yet to enter a price correction phase like most of the leading cryptocurrencies. The token’s price has continued to grow since crossing the resistance at $50.82. SOL is now selling for $62.19. The latest rally has pushed the Relative Strength Index into the overbought zone, signaling that a price correction could happen soon. In case this happens, Solana may drop to $50.82, a level we expect the buyers to buy the dip to fuel another rally to $72.02. But if they let it crack, a drop to $43.22 is likely.
Dogecoin Price Analysis
Dogecoin’s price is still above the $0.0719120 resistance level. The bulls are aiming to thrust the leading memecoin to $0.0820098. But if DOGE reverses and plummets below $0.0719120, the 50-day Simple Moving Average of $0.0659208 could be the next target for the bears.
SureTradeGroup.com is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written or posted by our writers or editors and the opinions expressed do not reflect the opinions of this website. Any disagreement you may have with brands or companies mentioned in articles will need to be taken care of directly with those specific brands and companies. The responsibility of anyone who may click links in our articles and ultimately sign up for that product or service is their own. Forex, Stocks, Cryptocurrencies, NFTs and Dogital Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.