Analyst Arslan Butt shared his technical analysis of 5 giant cryptocurrencies. As Bitcoin price declines to the $50,000 support, the analyst sets critical levels for the bulls and bears.
Bitcoin tests the $50,000 support
Bitcoin (BTC) cooled its rise above $51,500 and fell to $50,000 on December 26. Saying that $52,000 is critical, the analyst identifies the following resistances in a possible recovery:
BTC failed to consolidate between $50,657.1 and $51,521.4. However, sources hint that the supply of illiquid Bitcoin has increased by over 371,000 BTC since May 2021, which could lead to an upward trend in BTC value. A strong breakout from $52,000 could take the bulls to $53,200.
Cryptocoin. com, Ethereum found strong support from the $4,000 region. Now it maintains this level despite the recent correction. The analyst identifies the following critical levels in ETH:
Ethereum price is showing signs of more recovery and it could rise above $4,200 in the near future. ETH formed a bottom above the $3,900 level, which marks the start of a new uptrend. The crypto managed to surpass the $4,000 resistance zone and the 100 hourly SMA. It is now trading above $4,000 and the 100 hourly SMA. There is an upside resistance near $4.120 and the next major resistance could be found near $4.150.
In the upside scenario, the analyst expects a gradual rise after $4,150:
A clear upside break above $4.150 could push the price higher in the short-term and buyers’ next target could be $4,200, where the price could rally to $4,250. Any further increase could push the price as high as $4,320.
As for Litecoin, the analyst shares the following trend analysis:
Litecoin had a solid week. Bitcoin positive price action helped confirm this. Meanwhile, the bearish trend in the dollar, supported by multiple factors, also found LTC significant support on the upside.
XRP has been in the news this week with strong support from the expectation of a positive outcome in the SEC case. According to the analyst, off-chart developments determine the fate of XRP:
- Rising investor interest was supported by a lawsuit filed against the SEC on behalf of Ripple Lab and XRP.
- Ripple CEO Brad Garlinghouse claimed that Ripple was having its “best year ever”.
This positive news could help limit deeper losses in Ripple prices, according to the analyst.
Finally, let’s take a look at Dogecoin. The analyst says the following for DOGE, which stagnated in the last quarter of 2021:
Dogecoin announced its goal of switching to PoS. In addition, this 3-arm project, in which Vitalik Butarin is a partner, will continue the evolution of the network. However, these developments have not had a significant impact on DOGE so far.
