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Bitcoin's bearish pattern raises questions about altcoin dominance. Explore key support levels and market trends.
Bitcoin experienced a surge on December 27, attempting to regain momentum, but faced a significant hurdle with sellers dominating at higher price levels. A small glimmer of hope came from U.S. Bitcoin exchange-traded funds (ETFs), which saw net inflows of $475.2 million on December 26 after a four-day stretch of $1.52 billion in outflows.
Despite this, things don't look too bright for Bitcoin. Chartered Market Technician Aksel Kibar pointed out a bearish head-and-shoulders (H&S) pattern forming with Bitcoin. Should it complete, a downturn to $80,000 seems inevitable.
With Bitcoin's current struggles, some analysts are shifting their focus to altcoins, seeing them as a more enticing option given the present market conditions. They predict altcoins might even eclipse Bitcoin in the year 2025.
The head-and-shoulders pattern is a historically reliable indicator of turning trends. When this pattern appears and the price tumbles below the neckline, a downtrend often follows. Past occurrences, like one in early 2018 with Bitcoin, resulted in substantial price declines after breaching the neckline.
However, if there's an inverse head-and-shoulders, it can hint at an upward revision, suggesting potential gains ahead. Still, while such patterns can sway short-lived price movements, they don't directly impact Bitcoin's foundational stability. Bitcoin's longevity is more closely tied to its adoption rates, regulations, broader economic trends, and tech advancements.
To assess if altcoins are positioned to outperform Bitcoin by 2025, consider several variables:
While Bitcoin retains strength, altcoins can expect to share the spotlight with it, or even outpace it. Yet, these insights hinge upon the current trends in the ever-volatile crypto atmosphere.
Bitcoin has fallen below the crucial 50-day simple moving average (SMA) of $95,406, suggesting bearish control. If the price closes below this SMA, it may plunge to $90,000. It remains to be seen if buyers can defend this level, as a failure might push the price down to $85,000 first and then toward $73,777.
Conversely, bulls need to push the price up and maintain it above $100,000 to reclaim power. If successful, a rally up to the peak of $108,353 appears possible, where strong selling may occur.
Ether attempted a recovery but faced a downturn from the 20-day EMA of $3,540 on December 25. The price may drop to $3,200 next, and if this support is broken, we could see a fall to $3,000 and perhaps to $2,850. Buyers are anticipated to intervene around $3,000 to $2,850.
To signal diminishing selling, bulls need to push the price above the 20-day EMA. A rally above $3,555 could also take us to $4,094.
XRP's tussle ended with a close below the 20-day EMA of $2.23 on December 26, forcing prices to the support line. Now the XRP/USDT pair is stuck between the support and resistance lines of the triangle, with the next big move post-breakout or break-down.
BNB's attempt to break free from $722 on December 27 met resistance. Repeated confrontations with this price have raised concerns about a potential drop below the 20-day EMA of $689, which could lead to a slide to the 50-day SMA of $668 eventually reaching the stronghold of $635.
Should buyer activity occur at the 20-day EMA, they would likely try again for a breakout above $722, potentially launching a venture toward $760 and the hefty resistance at $794.
Solana’s descent from the 20-day EMA of $203 indicates bearish sentiment as well. A fall to the uptrend line, an essential level of support, may occur. If that fails, expect a descent to $155, which should attract buyer interest.
A bounce at the uptrend line or any break above the $20-day EMA could change narrative momentum leading to a look at the $221 50-day SMA.
DOGE's recovery hit resistance under the 20-day EMA of $0.35, meaning bears are not relenting. Mild support at $0.30 may hold, but failure could yield a fall to the $0.27 61.8% Fibonacci retracement. A $0.27 to $0.23 buffer zone is anticipated to stabilize buyers.
If prices do not rebound at the moving averages, buyers would need to coordinate a rise above $0.35.
Cardano initially fell under the neckline of an H&S pattern. The $0.80 mark is likely to be heavily defended by buyers. A rebound here could signal an end to the correction, leading to a surge over $1 that recruits more seller/buyer action to push things back to $1.20.
The value of Avalanche has not escaped the moving averages—the bears are also in control here. The $35.50 and $33.50 levels appear to be critical. Buyers seem ready to mount a defense at the $30.50 level.
Considerably bullish clarity may be reached if the price rises, signaling a return to the $44.70 50% Fibonacci or $47.31 61.8% retracement.
Chainlink slipped below the wallet shed a box of $23’s existence, displaying continued bearish pressure. Expect the LINK/USDT pair to seek $20 levels, where buyers might try to intervene to stop a decline below $16.
To regain control, buyers seem to require closing above $27.50, thereby extending the reach to $31.
Toncoin is similarly felt to have lost breathe and may linger around an almost flat line, seeking out $6 before $7 as a probable region for spec action.
