Bitcoin depreciated near the $94,000 support on December 10th, but the bulls started a recovery rally the following day, pushing its price above $100,000 at the time of publishing. The surge was boosted by a positive Consumer Price Index (CPI) report, which shows inflation was declining.
Following the release of the CPI report, the probability of the Federal Reserve reducing the interest rate by 25 bps next week has risen to 96% on the FedWatch Tool. If the FOMC’s decision meets traders’ expectations, Bitcoin and other risky assets are expected to surge significantly.
Bitwise investment officer Matt Hougan says the Federal Reserve’s dovish policies, coupled with crypto-friendly regulations under Donald Trump’s administration, could enable a rally to $200,000 by the end of next year. He is also bullish that Ethereum and Solana will close 2025 trading at $7,000 and $700, respectively.
Meanwhile, crypto analyst on X, MichaelXBT, has warned that long positions could be liquidated if Bitcoin failed to cross $104,089, its new all-time high. He urges traders to practice caution when BTC nears that mark.
That said, what major support levels must we monitor if Bitcoin reverses from $104,089? Let’s study the charts to find out.
Bitcoin Price Analysis
BTC turned up from $94,386 on Tuesday, crossing the 20-day Exponential Moving Average of $96,284 to indicate that its uptrend remained intact. As of this writing, the coin has surged to $101,343. If the bulls push it to $104,089 and defeat the bears, a further rally to $112,900 and then to $120,100 could happen.
Conversely, if the bears defend $104,089 and start a downtrend, Bitcoin could plummet below $96,284 to find support at $90,031, where we expect aggressive purchasing of the dip.
Ethereum Price Analysis
ETH has crossed the $3,900 resistance again, now heading toward the $4,000 barrier, which is expected to attract selling. However, if the sellers fail to exert enough pressure, Ethereum could rally to $4,480 after crossing a minor obstacle at $$4,103.
On the bearish side, intense selling at $4,000 could fuel a massive downtrend, with the sellers targeting the 20-day Exponential Moving Average of $3,632.
XRP Price Analysis
After plummeting to the $1.94 support on December 10th, XRP has resumed its uptrend, reaching $2.42 at press time. The next possible stop for the asset is the $2.64 resistance level. If the bears halt the recovery rally there, XRP could enter a consolidation phase, trading between $1.94 and $2.64 for an unknown number of days.
However, if $2.64 gives way, an uptrend to $2.91 will continue, and a break above that level would enhance the probability of a rally to $3.29.
Solana Price Analysis
Solana’s recovery rallies have been halted at the downtrend line over the past two days, suggesting that the bears do not want the token’s uptrend to resume. However, if they let their guard down and allow the bulls to thrust SOL above the 20-day Exponential Moving Average of $229.93, then a rally to the $247.85 resistance is almost certain. We anticipate a tough battle at that level, and if the bulls win, a surge to $263.49 is possible.
On the contrary, if SOL continues to trade below $229.93, it may fall to the 50-day Simple Moving Average of $211.63.
BNB Price Analysis
BNB is trading slightly below the $721.59 breakout level. If it eventually crosses this mark, a journey to $810 could begin. On the other hand, a reversal from $721.59 put BNB at risk of plunging below the 20-day Exponential Moving Average of $684, with the 50-day Simple Moving Average of $632 being the bears’ target.
Dogecoin Price Analysis
The bears have failed to sustain DOGE below the uptrend line, signaling that the bulls are still strong at high levels. If bullish momentum picks up and the meme coin rises above $0.4206, its price could increase to $0.487. Meanwhile, a drop below $0.368 could mean that the bears are gaining momentum. As such, a drop to the $0.315 support is likely.
