Bearish Bitcoin Signals Potential Drop Below $80K While Other Cryptos Show Strength

Bearish signals suggest Bitcoin may drop to $76K, while altcoins like BNB, AAVE, and Monero show potential strength amid fluctuating market dynamics.

Bullish Resilience in a Bearish Outlook

Recent technical analysis reveals that Bitcoin’s trajectory may soon lead it toward a drop as low as $76,000.

In the last week, Bitcoin grappled to hold onto its recovery, facing considerable headwinds from bearish traders eager to capitalize at higher price points.

With attempts to push above the $100,000 mark falling short, buyers have still managed to hold their ground against the selling pressure, suggesting that there remains a glimmer of hope among investors for a possible rebound.

According to forecasts from Blockware Solutions, a crypto mining firm, Bitcoin might see a price target of $225,000 by 2025.

Even conservative estimates put it at $150,000, which is a significant leap from current trading levels.

In an enthusiastic scenario, some projections even flirt with the $400,000 mark.

Current Market Dynamics

The market sentiment appears optimistic for Ethereum (ETH).

December saw remarkable inflows into U.S. spot Ether exchange-traded funds (ETFs), exceeding $2.5 billion—almost double the inflow from the previous month.

Asset management company VanEck has set a bullish price target of over $6,000 for Ether by 2025.

Let’s dive into the critical support levels for Bitcoin, which may act as a springboard for a potential rebound, while also examining how leading cryptocurrencies could flourish if sentiment takes a positive turn.

On December 27, Bitcoin closed below its 50-day simple moving average (SMA) of $96,124, signaling a potential shift away from bullish momentum.

Despite buyers attempting to reclaim this SMA on December 28, strong selling pressure persisted.

The 20-day exponential moving average (EMA) sits at $97,257 and is trending downward; the relative strength index (RSI) remains in negative territory, indicating a bearish advantage.

The BTC/USDT trading pair stands on the brink of testing the $90,000 support level, where bullish players are expected to mount a vigorous defense.

A rebound from this point, coupled with a rise above the moving averages, would highlight solid demand and market support.

For buyers to reclaim dominance, pushing Bitcoin back above $100,000 is crucial.

This movement could ignite a rally targeting $108,353.

Individual Cryptocurrency Insights

The 4-hour chart reveals a head-and-shoulders pattern, which will be confirmed by a breach below the neckline.

This could precipitate a decline to $85,000, with a subsequent target of $76,647.

Conversely, if buyers manage to sustain prices above $100,000 shortly, they could challenge the bearish outlook, potentially propelling the pair up to around $124,206.

BNB has been oscillating between $635 and $722, illustrating a standoff between buying and selling pressures.

While bearish forces hold the $722 level firm, it’s promising that the price has remained above the 20-day EMA of $694.

If bulls can uphold this support, the BNB/USDT pair may gain traction, aiming for $760 and potentially $794.

On the flip side, a drop below the moving averages could suggest ongoing consolidation for several more days.

Aave is currently at a crossroads, caught in a tug-of-war close to the 20-day EMA of $329.

The upward trend of the 20-day EMA hints at a slight advantage for bulls, but the neutral RSI indicates a diminishing momentum.

Should the price slip below the 20-day EMA, the AAVE/USDT pair could fall toward $261.

For the bulls to consolidate their position, they must elevate the price beyond $362, potentially leading to a retest of the $400 resistance level.

Monero is battling to regain momentum, facing formidable resistance around $203.

The 20-day EMA, currently at $193, offers some stability, and a neutral RSI suggests a stalemate between buying and selling forces.

If Monero can maintain levels above the 20-day EMA, this could increase its chances of breaking past the $203 barrier.

However, a decline beneath the 20-day EMA may signal a continued range-bound movement between $180 and $203.

On the 4-hour chart, a bullish ascending triangle formation is taking shape, which could be validated with a breakout above $203.

Virtuals Protocol (VIRTUAL) has reignited its upward movement after successfully breaching the significant resistance level of $3.33.

The 20-day EMA, now trending upward at $2.71, reinforces the bullish sentiment, although the RSI signals negative divergence, hinting that momentum might be losing steam.

The VIRTUAL/USDT pair looks set to rise toward the $4 mark, with an eye on $4.79.

Conversely, a close below $3.33 would indicate the first sign of weakness.

However, if the price quickly rebounds off the 20-day EMA, bulls could re-establish their upward trajectory.

Source: Cointelegraph