The Bitcoin crash of over $20,000 boosted investor sentiment and triggered strong highs of several altcoins.
Cryptomaniac traders and investors received an early Christmas gift today, with the price of Bitcoin (BTC) exceeding the psychological mark of US$20,000 for the first time in history. Today’s break is equally significant as it serves to heal the scars of traders who may have bought at the top in 2017 and maintained their positions until now.
The current upward trend at Bitcoin has been all about institutional adoption. The most recent institutional investor to announce a position at Bitcoin is the investment manager Ruffer Investment Company Limited, based in the United Kingdom.
As has happened with most institutional purchases this year, Ruffer said they bought Bitcoin as an „insurance policy against the continuous devaluation of the world’s major currencies“.
Institutional participation has been so high that Bank of America Merrill Lynch’s Global Fund Manager Survey shows that respondents believe Bitcoin is the third most popular trade, behind technology stocks and positions sold in US dollars.
Institutional investors have continued to migrate to Bitcoin because it has outperformed most major asset classes by a wide margin. Consequently, institutional investors who joined the Bitcoin party early are likely sitting on huge profits and their portfolios are outperforming other fund managers who have only legacy markets. As Crypto Investor and Bitcoin continues to attract more attention from the investor class, curious customers may force more institutions to allocate a portion of their money to BTC.
Now that Bitcoin has resumed its upward trend, we will analyze the charts of the top 10 cryptomaps to identify the target objectives on the positive side.
Bitcoin (BTC) fired well over $20,000 with a strong break. This shows that several traders jumped after the break, above the psychological round value of US$ 20,000.
Any asset that reaches a new record high is on a strong uptrend. The BTC/USD pair has completed a rising triangle pattern, which targets $22,808.98. If this level is also breached, the pair could reach $25,000.
The Relative Strength Index (RSI) has not yet reached the overbought zone, which shows that the BTC/USD pair has room to rise before markets overheat in the short term.
Normally, after each breakout, the price drops and tests the breakout level again. If the bulls accept this fall, the level will act as a new floor. In this case, if the bulls reverse the $19,500 level to give support, the upward trend will remain intact.
This optimistic view will be invalidated if the price reverses the direction and falls below $17,500.
Ether (ETH) rose today and reached the air resistance zone of US$622,807 to US$635,456. If the bulls can push and sustain the price above the zone, it will complete an upward triangle pattern with a target of $763,614.
The upward moving averages and the RSI above 61 signal that the path of least resistance is upward.
Contrary to this assumption, if the price falls from current levels or does not sustain itself above the resistance zone, then a fall to the 20-day exponential moving average ($572) is possible. A strong recovery of this support can keep the uptrend intact.
However, if bears sink the price below the 20-day MME, this will suggest that traders are recording profits at higher levels. Such a move could keep the ETH/USD pair limited for a few days.
XRP found strong purchase support at the $0.435420 level on November 26 and the bulls again bought their way down to this critical level today, resulting in a strong recovery.
The 20-day MME flattening (US$0.530) and the RSI near the mid-point suggest a balance between supply and demand. However, bears are unlikely to give up easily. They will try to halt the current recovery on the downward trend line.
If the price drops from the downtrend line, the XRP/USD pair may fall to the 50-day simple moving average ($0.42). This is the final support because if it breaks, the next stop could be $0.326.
However, if the bulls can push and sustain the price above the downtrend line, the pair could rise to $0.60.
Litecoin (LTC) is traded within a large symmetrical triangle. The bulls defended the 20-day MME (US$80) on December 14 and 15, which could have attracted purchases and the price rose to the triangle’s resistance line today.
The 20-day MME on the rise and the RSI above 61 signal that the bulls are in control. If buyers can push the price above the triangle and the overhead resistance of $93,9282, the next leg of the bullish trend to $100 and then to $140 can begin.
Contrary to this assumption, if the price falls from current levels, the LTC/USD pair may extend its stay within the triangle for a few more days.
The long tail of the candle on December 14 shows a strong purchase of the bulls at lower levels. This was followed by another strong day on December 15th and buyers pushed Bitcoin Cash (BCH) above $280 resistance.
The long candle wick on December 15th shows that the bears are trying to defend the $300 resistance. Today’s price action shows bulls buying near $280 and bears selling near $300.
It’s unlikely that this narrow trade range will continue for long. The RSI has risen back into positive territory and the 20-day MME ($280) is trying to rise, suggesting that the bulls are in the lead.
If the price remains above $300, the BCH/USD pair could rise to $320 and then $338. This positive view will be invalidated if the price falls and breaks below the 50-day SMA ($273). Such a move could again lower the price to $250.
Chainlink (LINK) fell from the upper resistance by $13.28 on December 13, but the bears failed to sink the price to the bullish trend line. This attracted buyers who are currently trying to push the price above the $13.28 resistance.
If the bulls are successful, the LINK/USD pair could rise to $15 and then $17,7777. If this level is also crossed, a new test of the all-time high of $20,11111 is possible.
However, the flat moving averages and the RSI just above the mid-point do not signal a clear advantage for bulls or bears.
Therefore, if the price drops from current levels, the pair may consolidate into a range for a few days.
Cardano (ADA) rose above the $0.155 resistance on December 14, but the price fell from the downtrend line on December 15. However, bears can now sink the price below the 20-day MME ($0.149). This has attracted aggressive bull purchases, which have pushed the price above the bearish trend line.
The gradual rise in the 20-day MME and RSI above 59 suggests bulls are in control. The ADA/USD pair may now rise to $0.1750 and then $0.1826315. If this level is also exceeded, the next target is $0.20.
Contrary to this assumption, if the price falls from the overload resistance, the pair may enter a limited action for a few days.
Polkadot (DOT) broke above the bearish trend line on December 15, suggesting that the bears have lost control. Altcoin may now rise to $5.5899, where it should face strong bear resistance.
If the price drops again from the overload resistance, the DOT/USD pair could fall to the 20-day MME ($5). If the bulls buy the drop for the 20-day MME, this will increase the possibility of a drop above $5.5899. Such a move could initiate a new uptrend that could reach $6,0857 and $6,8619.
Contrarily to this supposition, if the price drops from the current levels and falls to the moving averages, this will suggest a lack of demand on higher levels. In this case, the price can oscillate close to the moving averages.
Binance Coin (BNB) has bounced off the moving averages and the bulls will now try to push the price to the $32 resistance. This level is likely to act as a strong resistance, as the price has fallen on three previous occasions.
If the price falls again of US$32, the pair BNB/USD can fall to the moving averages and then to the critical support in US$25,6652. The flat moving averages and the RSI just above the mid point suggest a balance between supply and demand.
The next trend movement may begin if bulls push the price above the $32 resistance or if bears sink the price below the $25.6652 support. Until then, the price action may remain volatile and random.
Stellar Lumens (XLM) fell from the $0.18 resistance on December 14, but the upside is that the bulls defended the drop to the 20-day MME ($0.16). The bulls are currently trying to resume the bullish trend by pushing the altcoin above US$0.18.
The 20-day MME has begun to fall gradually and the RSI is trying to sustain itself in positive territory, suggesting a small advantage for the bulls. If the price closes above $0.18, the XLM/USD pair could rise to $0.205 and then $0.231655.
However, if the bulls cannot sustain the price above $0.18, the bears will try to sink the price back to the 20-day MME. If this happens, you can keep the pair within the $0.14 to $0.18 range for a few more days.