By Frank Martin (MoneyAmped.com)
Bitcoin has remained above $100,000 in the last few days, suggesting an increased demand. Keith Alan, the co-founder of Material Indicators, expects the asset’s price to continue rising this month, arguing that the BTC has historically recorded massive gains from December 17th.
Furthermore, Chief Investment Officer at ZK Square, CK Zheng, says the anticipated Federal Reserve rate cut could boost BTC’s price later this week. He, however, sees Bitcoin cooling down at the start of next month as market participants await more clarity from incoming US President Donald Trump.
Zheng has claimed that if Trump’s administration provides regulatory clarity, Bitcoin could potentially hit $125,000 in the first quarter.
Michael Saylor’s MicroStrategy also appears to hold a bullish view of Bitcoin based on its latest activities. The software company bought 15,350 BTC on December 15th, boosting its holding to 439,000 coins.
That said, will increased demand push Bitcoin higher, or should traders expect a pullback? And if a pullback happens, what support zones should be monitored? Let’s analyze the charts to find out.
Bitcoin Price Analysis
BTC has been in a strong upward trend since the start of the week, crossing $108,000 on Tuesday to form a new all-time high. The current price ($108,038) means the coin has crossed above the resistance line. If the bulls can maintain momentum, the chances of a move to $113,330 will be boosted significantly. Furthermore, a sustained breakout above $113,330 could allow the bulls to push Bitcoin to $125,050.
However, the bears will likely invalidate our bullish view if they pull BTC below $104,089 support. As such, the asset could drop below $100,000 and find support at the 20-day Exponential Moving Average of $98,932.
Ethereum Price Analysis
ETH is back above $4,000 but has failed to clear the $4,093 hurdle, suggesting ongoing profit booking. The good news for the bulls is that the Relative Strength Index (62.05) favors them. This improves the chance of a breakout above $4,093, with the bulls expected to fuel an explosive move to $4,501, where they will engage in a tough fight with the bears again.
On the contrary, continued failed attempts by bulls to push Ethereum above $4,093 could trigger a downturn toward the 20-day Exponential Moving Average of $3,803. If no buying pressure is exerted there, the bears will try to tug the coin to the 50-day Simple Moving Average (3,749).
XRP Price Analysis
After a 13% jump in the past 24 hours, XRP has now crossed the downtrend line. The latest rally is fueled by the buzz around the launch of Ripple Labs’ stablecoin later today. Dubbed RLUSD, the new stablecoin, which was approved by New York regulators in November, will enable cross-border payments on XRP Ledger, according to Ripple Labs.
XRP is currently changing hands for $2.59. If it crosses the $2.64 resistance, we could witness it rise to $2.91, where the bears have mounted a barrier.
On the other hand, if sellers successfully prevent a break above $2.64 and start a downtrend, the 20-day Exponential Moving Average of $2.19 could be at risk of collapsing. And if that’s the case, a drop to $1.97 seems possible.
Solana Price Analysis
Solana is still struggling to go past the 20-day Exponential Moving Average of $227 despite the bulls maintaining it above the $200 key support level since the start of December. However, if $227 is violated in the coming days, SOL could rise to retest $248.63 or even $264. On the downside, a break below the 50-day Simple Moving Average of $217.04 could put selling pressure on the coin, with the bears aiming to drag it toward $200.
Dogecoin Price Analysis
Dogecoin still consolidates between $0.372 and $0.419. In addition, the Relative Strength Index (49.53) does not show a clear edge for the bears or the bulls, suggesting that the meme coin may continue trading in a range for some time. However, if a break above $0.419 occurs, DOGE stands a chance of reaching $0.450, while a break below $0.372 allows the bears to drag the token to $0.341.
