Bitcoin crossed the $38,000 resistance level on Friday, suggesting that sentiment around cryptocurrencies continues to be positive. Adrian Przelozny, the CEO of Independent Reserve, told news outlet Cointelegraph earlier this week that the crypto market will enjoy a good run in the next two years. He said market activity will pick up in January as he expects the US Securities and Exchange Commission to approve a Bitcoin ETF that month.
Przelozny also said another catalyst for the bull run is the most awaited Bitcoin halving expected in April. For starters, Bitcoin halving is an event that happens every four years in which BTC mining rewards are reduced by half to minimize the rate at which new coins enter the circulating supply.
Meanwhile, some crypto analysts expect Bitcoin to reach $40,000 in the coming days and reverse from there. That explains why Ark Invest, a Cathie Wood-owned investment company, is already booking profits. The firm recently sold 700,000 shares of GBTC (Grayscale Bitcoin Trust) worth approximately $21.5 million. However, it is worth highlighting that ARK Invest still holds over 4 million shares of GBTC.
Now, let us analyze the price charts to find out the crucial levels to keep an eye on in the short term.
Bitcoin Price Analysis
As mentioned, Bitcoin bulls pushed the crypto asset above $38,000 on November 24 but couldn’t sustain those high prices, causing BTC to drop to $37,604 at press time. An upward move remains likely based on the relative Strength Index (62.98). The buyers have to thrust and maintain Bitcoin above $38,000 to fuel a solid run to $40,000, where the bears are likely to come in and exact massive selling pressure. But if they don’t, Bitcoin could hit $48,500 for the first time since December 2021.
Conversely, a downward move to the $34.798 support is expected if the bulls fail to guard the 20-day Exponential Moving Average (EMA) of $36,308.
Ethereum Price Analysis
Ethereum bulls have sustained the token above the $2,001.98 resistance level since November 22, indicating that they are trying to start the second leg of the upward move. If the buyers succeed in turning $2,001.98 into solid support, they might be able to push ETH to $2,225. Overcoming this barrier could open the doors for a massive rally to $3,398.68.
However, this positive view won’t be valid if the bulls allow Ethereum to cross below $2,001.98 and the 20-day EMA of $1,982. That’s because the chances of the token falling to $1,905.70 will increase.
BNB Price Analysis
BNB is the only top ten crypto asset to have experienced a sharp fall this week after Binance, the exchange it is associated with, got involved in a regulatory battle with the US Department of Justice. Although the two parties reached a settlement agreement, the damage had already been done, with BNB collapsing from $264.34 to $229 on Tuesday. It’s now trading at $232.36, still below the 20-day Exponential Moving Average of $238.97.
The Relative Strength Index is currently at 41.82, suggesting a slight advantage to the sellers. If they tug BNB below $229, a further fall to $224.03 seems likely. On the upside, sustaining the token above $238.97 could make a bull run to $265.30 possible.
XRP Price Analysis
There is a fierce battle at the 20-day Exponential Moving Average of $0.6298042. The bulls are struggling to push XRP above that level, suggesting that demand is drying up at high prices. However, if buying activity escalates in the coming days, we might see XRP rising to $0.6792522 or even $0.7399873. On the contrary, the crypto asset is likely to touch $0.4677360 if it plummets below the $0.5611820 support.
Solana Price Analysis
Bulls’ efforts to sustain SOL above $59.32 have yet to bear fruit. Although the bears have successfully denied the token from rising above this key resistance level, the growing 20-day EMA of $52.78 shows that the bulls have an advantage. Over the coming days, the buyers will try to defeat the bears at $59.32 to fuel a rally to $68.94. However, we may witness a drop to $48.31 if the bears drag Solana below $52.78.
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