Bitcoin Craze: Sets New All Time High as Market Sees Green

By: Dickson Arinze

December 26, 2020 1:28 PM

The global crypto market cap is $674.39B, a 1.43% increase over the last day, the total crypto market volume over the last 24 hours is $197.60B

The institutions have been pumping money into Bitcoin at an unprecedented pace. Grayscale continued its buying spree and added 12,319 Bitcoin recently.

Bitcoin’s supply is not able to keep up with the institutional demand and if retail traders also turn net buyers, the price is only likely to boost further as the major crypto breaks its all time high of $25,105, as its market cap grows past visa.

Let’s look at the charts of the top-10 cryptocurrencies and establish their major trend.

BTC/USD
In a strong uptrend, the corrections usually last for about one to three days. Bitcoin closed in the red on Dec. 20 and 21 but the price turned up on Dec. 22 and the bulls are currently pulling the strings to a green chart.

If the bulls can push the price above $24,932.50, the BTC/USD pair could rally to $27,000 mark. The upsloping moving averages and the relative strength index (RSI) close to the overbought zone suggest bulls are in control.

However, if the bears defend the overhead resistance level, the pair may consolidate in a tight range of $$23,332 before starting the next move.

With Bitcoin having reached a new higher high after breaking it's best record set earlier on Christmas Day  of $24,610, in conclusion we can say it's a bullish trend

ETH/USD
The bulls are aggressively defending the 20-day exponential moving average ($603). Although Ether (ETH) rose above the $622.807 resistance on Dec. 22, they've been slight spike in price today as it goes above $632.

However, the bulls are currently attempting to defend the 20-day EMA. Eth have shown some bullish uptrend movement could break the $645 - $670 Mark.

The upsloping moving averages and the RSI in the positive territory suggest that bulls have the upper hand. A breakout of $676.325 may start the next leg of the uptrend, which has a target objective at $763.614.

LTC/USD
Litecoin (LTC) rebounded off $98.40 on Dec. 22 but the bulls could not push the price above the $118.6497 resistance. This suggests that traders are using rallies to offload their positions.

The bears will now try to sink the price below the $98.40 support and the 20-day EMA at $95. If they succeed, the LTC/USD pair could drop to the 50-day SMA ($80). Such a move will suggest a possible change in trend.

The rising moving averages and the RSI above 60 suggest that bulls have the upper hand. A break above the $118.6497 to $124.1278 resistance zone could indicate a resumption of the uptrend that may reach $140.

BCH/USD
The long wick on Dec. 22 candlestick shows that bulls purchased the dip to the 20-day EMA ($299). However, they could not build up on the rebound and renewed selling by the bears today has pushed Bitcoin Cash (BCH) below the 20-day EMA.

If the bears sink and sustain the price below the 50-day SMA ($281), the BCH/USD pair could drop to $250. The bulls may try to defend the zone between $230 and $250 and if they succeed, a strong rebound is likely.

However, the bears will try to stall any relief rally at the 20-day EMA. If that happens, the price may turn down and break below $230, which could result in a fall to the next critical support at $200.

LINK/USD
Chainlink (LINK) bounced off the uptrend line on Dec. 22 but the bulls could not push the price above the moving averages. This suggests that bears are attempting to defend the 20-day EMA ($12.87).

The LINK/USD pair has currently slipped below the uptrend line, which suggests a possible change in trend. There is a minor support at $11.29 but if this level cracks, the pair may drop to $10.

The RSI has dipped below 43 and the 20-day EMA has started to turn down, which suggests that the momentum is shifting in favor of the bears.

This negative view will be invalidated if the pair rebounds off the immediate support and rises above $13.28.

BNB/USD
Binance Coin (BNB) dipped to the 20-day EMA ($30.88) on Dec. 22 but aggressive buying at lower levels propelled the price back above $33.3888. However, the bulls could not build upon this rebound and the price had again dropped to the 20-day EMA today.

If the bulls can keep the price above $32, the BNB/USD pair could trade in a tight range between $32 and $35.4338 for a few days.

A break above $35.4338 could resume the uptrend and open the doors for a rally to the all-time high at $39.5941.