Bitcoin’s price has dropped below $95,000 after peaking at $108,012 on December 17th. The latest dip is fueled by comments from Fed Chair Jerome Powell that suggested fewer rate cuts than expected in 2025. Some analysts say Bitcoin’s price might drop further if the American Central Bank takes a hawkish approach to monetary policy next year.
Moreover, BitMex founder Arthur Hayes claims that cryptocurrencies will likely dip after incoming US President Donald Trump ascends to power on January 20th. He argues that market participants will sell upon realizing that crypto-friendly policies will take several months to be implemented.
In contrast, analysts at Bitfinex expect pullbacks to be short-lived next year due to growing institutional demand. According to them, Bitcoin could rally to $145,000 by June 2025 and end that year trading at $200,000 if Trump creates a favorable environment for crypto.
Despite the crypto markets bleeding this week, spot ETFs have continued to perform well, with investors pouring over $3.1 billion into these products, per data from Farside Investors.
Will institutional demand spur a recovery rally in the coming day? And if so, what resistance levels should traders and investors watch closely? Let’s study the charts of various cryptocurrencies to get answers.
Bitcoin Price Analysis
Bitcoin has broken out of the ascending channel, plummeting to $94.887 as of this writing. This highlights the bulls’ struggles in keeping the coin at higher levels. Furthermore, the Relative Strength Index has formed a negative divergence, suggesting that BTC’s uptrend could be losing momentum.
With the number one digital asset trading below the 20-day Exponential Moving Average of $99,943, traders should now keep an eye on the 50-day Exponential Moving Average of $91,057. If Bitcoin hits this mark and the bulls fail to purchase the dip, a pullback to $80,000.50 is possible.
From a bullish point of view, thrusting and keeping BTC above $99,943 could give the bulls a chance to fuel a strong rally to $108,012 and then to $113,310.
Ethereum Price Analysis
ETH has dropped by nearly $1,000 this week, signaling that the bears are guarding upper levels with all their might. Like Bitcoin, Ethereum is currently trading below the 20-day Exponential Moving Average ($3,774). In addition, it has plunged below the downtrend line, indicating a weakening bullish momentum. The bears are now looking to drag ETH to the $2,852 support, where we expect aggressive buying.
The bulls will have to push the token above the 50-day Simple Moving Average of $3,358 to regain control. If this happens, $3,774 could give way, allowing Ethereum to rally to $4,093.55.
XRP Price Analysis
Like most altcoins, XRP has recorded a double-digit percentage loss (15.2%) in the past 24 hours. That means it has lost all the gains it posted earlier this week following the launch of Ripple’s RLUSD stablecoin.
XRP is priced at $2.07, below the 20-day Exponential Moving Average of $2.23. With bears clearly in charge, a move to the $189 support looks likely. However, if the bulls push the asset above $2.23, it may retest $2.63 and then rise to $2.95.
Solana Price Analysis
After pulling Solana below the 50-day Simple Moving Average of $219 on December 16th, the bears have now dragged the token to $182, a level it hasn’t seen for several weeks. If the downtrend continues, we anticipate intense buying at $164. But if our prediction is wrong, SOL could plummet to $141.
Meanwhile, the bulls must push Solana above the $210.37 breakout level to signal the resumption of the uptrend. As such, the 20-day Exponential Moving Average of $227 could collapse, giving way to a rally toward $247.88.
Dogecoin Price Analysis
The $0.305 support has crumbled, with the bears tugging Dogecoin to $0.2867 at press time. Continued aggressive selling pressure could cause the meme coin to plunge to the $0.23 support.
However, if the bulls push DOGE above $0.305, it could rally to the 50-day Simple Moving Average of $0.358 and then to $0.40.
