Bitcoin's (BTC) relief rally is encountering selling pressure near the $112,000 mark, indicating that bearish sentiment has not entirely dissipated. While buyers have managed to defend support levels for some major altcoins, a sustained push above overhead resistance is crucial to signal a more robust recovery.
Analysts at Bitfinex noted in a report that Bitcoin's recent peak-to-trough drawdown of 18.1% in October is consistent with prior cycle-high retests since 2023, suggesting a period of consolidation rather than a definitive trend reversal. Galaxy Digital CEO Mike Novogratz expressed his view in an interview with CNBC that BTC should find support around $100,000. He anticipates BTC will trade within a range of $100,000 to $125,000, with significant price acceleration only occurring after a break above this range.
Some market observers foresee BTC potentially dipping below the $107,000 support level, though they do not anticipate a substantial decline. Nick Ruck, director at LVRG Research, suggested to Cointelegraph that BTC might experience a healthy market correction down to $104,000. However, he pointed to strong fundamentals and robust institutional interest as indicators for the resumption of the bull market.
The following analysis examines the critical resistance levels for BTC and major altcoins, based on chart patterns of the top 10 cryptocurrencies.
Bitcoin Price Analysis
Bitcoin rebounded from the $107,000 level on Thursday, demonstrating that bulls are actively defending this crucial support.
For a bullish comeback to be signaled, buyers must push the price above the moving averages. A successful rally could then target the all-time high of $126,199. The $107,000 support remains the key level to monitor on the downside. A sustained price drop below $107,000 would complete a double-top pattern, potentially leading to a deeper correction towards $100,000 and the pattern target of $87,801.
Ether Price Analysis
Ether (ETH) saw a recovery from the support line of its descending channel pattern on Wednesday, but this rebound is facing selling pressure near the 20-day exponential moving average (EMA) at $4,023.
Bears will likely attempt to capitalize on this resistance by pushing the Ether price below the support line. If successful, the ETH/USDT pair could initiate a downward move towards $3,435 and subsequently to $3,350. Conversely, a break above the 20-day EMA would indicate diminishing bearish influence, potentially allowing the price to rise towards the 50-day simple moving average (SMA). This scenario suggests the pair might continue to oscillate within the channel for some time.
BNB Price Analysis
BNB bounced off the 50-day SMA at $1,051 on Wednesday. However, the subsequent relief rally is encountering selling pressure near the 38.2% Fibonacci retracement level of $1,156.
If the price remains below the 20-day EMA at $1,120, bears will likely attempt to drive the BNB/USDT pair below the 50-day SMA. A breach of this level could lead to a deeper correction in BNB price towards $1,021 and then to $1,000. Buyers need to push the price above the $1,156 resistance to suggest the end of the corrective phase. Following such a move, the pair could ascend to the 61.8% retracement level at $1,239.
XRP Price Analysis
XRP has reached the 20-day EMA at $2.52, a level where strong defense from bears is anticipated.
A sharp downturn from the 20-day EMA would indicate that the sentiment remains negative, with bears actively selling on rallies. This could keep the price confined within the descending channel for a few more days. Alternatively, a close above the 20-day EMA would signal a reduction in selling pressure. The XRP/USDT pair could then rise to the breakdown level of $2.69 and subsequently to the downtrend line.
Solana Price Analysis
Solana (SOL) has reached the 20-day EMA at $196, which serves as a critical near-term level to watch.
If buyers successfully push the price above the 20-day EMA, the SOL/USDT pair could climb towards the resistance line. Sellers are expected to defend this resistance line vigorously, as a break above it would shift the advantage to buyers. A sustained upward movement could see Solana's price surge towards $238 and eventually to $260. Conversely, if the price turns down sharply from the 20-day EMA, bears will attempt to pull the pair towards the support line.
Dogecoin Price Analysis
Dogecoin (DOGE) continues to trade below the $0.21 level, but bears have so far failed to maintain the price below $0.18.
Bulls will aim to initiate a comeback by pushing the price above $0.21. If successful, the DOGE/USDT pair could rally towards the 50-day SMA at $0.23 and subsequently towards the significant overhead resistance at $0.29. Sellers, however, may have different plans, aiming to halt the relief rally at the 20-day EMA and push the pair below the $0.18 support. A breach of this level could lead to a Dogecoin price drop to $0.16 and then to $0.14.
Cardano Price Analysis
Cardano (ADA) saw a recovery from the $0.60 level on Wednesday, indicating active buying interest at lower price points.
The 20-day EMA at $0.69 represents a critical upside level to watch. A sharp downturn from this level could increase the probability of a break below $0.60, potentially causing Cardano's price to fall to $0.50. Conversely, if buyers drive the price above the 20-day EMA, the ADA/USDT pair could rally towards the 50-day SMA at $0.79 and later towards the downtrend line. A sustained push above the downtrend line would be necessary to signal a potential trend change.
Hyperliquid Price Analysis
Hyperliquid (HYPE) bounced off the $35.50 support on Wednesday, indicating bullish activity at lower levels.
Buyers are attempting to strengthen their position by pushing the Hyperliquid price above the 20-day EMA at $40.02. If successful, the HYPE/USDT pair could rally towards the 50-day SMA at $46.18. On the other hand, a downturn from the current level would suggest that bears are selling on rallies. The next phase of the downtrend towards $30.50 could commence if sellers manage to pull the pair below the $35.50 support.
Chainlink Price Analysis
Chainlink (LINK) rebounded from its support line on Wednesday, signaling that bulls are attempting to keep the price within the descending channel pattern.
The relief rally is expected to face selling pressure at the 20-day EMA at $18.73. A sharp downturn from this level would prompt bears to attempt to pull the LINK/USDT pair back to the $15.43 support. Conversely, a break and close above the 20-day EMA would open the possibility for a rally towards the channel's resistance line. While sellers are expected to defend this line, a decisive break by buyers could lead Chainlink's price to rally towards $23.73 and subsequently to $25.64.
Stellar Price Analysis
Stellar (XLM) is attempting to initiate a recovery, which is anticipated to meet selling pressure at the 20-day EMA at $0.33.
If the price turns down from the 20-day EMA ($0.33), bears will likely attempt to push the XLM/USDT pair below the $0.29 support. A successful breach could lead Stellar's price to descend towards $0.25. In contrast, if the price rises and breaks above the 20-day EMA, it would signal a reduction in selling pressure. Bulls would regain control once they propel the price above the downtrend line.