December is proving to be another blockbuster month for Bitcoin as the influx of institutional investors investing in Bitcoin continues to grow.
Business intelligence firm MicroStrategy announced that it had raised $ 650 million in convertible bonds at 0.75% interest in 2025. The company now plans to invest the net proceeds in Bitcoin after determining its “working capital needs and other general corporate purposes”.
With institutional investors showing such a huge appetite for buying Bitcoin (BTC) near its all-time high, it’s no surprise that the corrections have been minor.
Tyler Winklevoss said in a recent interview with CNBC that institutional investors are concerned about “oncoming inflation and the scourge of inflation with all the money pressures and incentives of the COVID pandemic lockdown”. Hence, they put money into Bitcoin.
Today, Bitcoin price surged back above the $ 19,000 level and could call into question the $ 20,000 psychological resistance. If this level is broken with conviction, it can lead to FOMO among retailers as many did not participate in the current rally.
If money flows in from retail investors as well, Bitcoin could gain momentum and begin the next leg of the uptrend.
In addition to Bitcoin, there are some altcoins that can join the uptrend next week. Let’s examine the top 5 cryptocurrency charts to identify the critical levels of support and resistance to watch out for.
BTC / USD
Bitcoin closed below the 20-day exponential moving average ($ 18,435) on December 10th and 11th. However, the long tail on the December 11th candlestick shows that the bulls bought the dip instead of panicking and losing their positions.
The price rose above the 20-day EMA on December 12th and this could have caught some aggressive bears who had been expecting a sharp drop in the past few days. That brief covering and buying by the bulls drove price down the descending channel today.
The price has once again entered the overhead resistance zone of $ 19,500 to $ 20,000. If the bulls can push the price above this zone, the next segment of the uptrend could begin.
Conversely, a further sharp drop in prices from current levels and a drop below USD 17,500 could signal that a short-term high has occurred. Such a move could bring the price down to the nearest support at $ 16,191.02.
The 20-day EMA has started to emerge and the relative strength index (RSI) has bounced back from the 50 level, suggesting that bulls have the upper hand.
The 4 hour chart shows an ascending triangle formation that completes in a breakout and closes above the overhead resistance zone. This setup has a goal of $ 23,576.
For now, however, the bears are trying to stop the uptrend at the USD 19,500 resistance. If price deviates from current levels, the bulls are likely to buy on a fall to the 20-EMA. A strong rebound in this support will improve the outlook for a breakout above $ 19,500.
This bullish view will be invalidated if the BTC / USD pair deviates from current levels and breaks below the triangle’s trendline.
A bullish setup collapse captures several aggressive bulls and this could lead to panic selling. If so, it may be slated to drop to $ 16,191.02.
ETH / USD
The ether (ETH) has broken out of the descending channel giving the cops an advantage. The price can now climb to the overhead resistance zone of $ 622.807 to $ 635.456.
The RSI has bounced back from the midpoint and broken out of the downtrend line, suggesting that bulls have the upper hand.
If the bulls can push the price above the resistance zone, the next segment of the uptrend could begin. Although there might be a few pit stops in between, the next goal is $ 800.
If the ETH / USD pair is turning away from the overhead resistance but not giving much ground, it is a positive sign and increases the likelihood of a breakout of the resistance zone.
This bullish view will be invalidated if the price deviates from current levels and re-enters the channel. Such a move suggests that the current outbreak was a bull trap.
The 4 hour chart shows an ascending triangle formation that will complete on a breakout and close above $ 622.807. The moving averages on the verge of a bullish crossover and the RSI in positive territory show that bulls have the upper hand.
This positive view will be invalidated if the price deviates from the current level or from the overhead resistance and falls below the triangle. Such a move could result in a drop to $ 488.134.
XMR / USD
Monero (XMR) did an inverted head and shoulders pattern on Dec. 7, but the bears quickly pulled the price back under the neckline on Dec. 9. However, the bulls bought the jump to the 20-day EMA ($ 133) again and drove it back above $ 135.50 on December 11th. This indicates an aggressive buy at lower levels.
The rising moving averages and the RSI above 66 suggest an advantage for the bulls. The target of the breakout from the bullish setup is at $ 167.
However, the bears may have other plans. You will likely defend the psychological level at $ 150. If price deviates from this resistance but rebounds from the USD 135.50 support, it indicates that bulls are building up at lower levels.
On the contrary, if the price drops below the $ 135.50 support and the 50-day SMA ($ 124), it suggests that the bears are back in the driver’s seat.
The 4 hour chart shows the formation of an ascending triangle pattern that completed on a breakout and closed above $ 142.50. The XMR / USD pair has not gained momentum, however, and the price is in the $ 142.50-150 range.
If the bulls can push the price above $ 150, the uptrend could continue with the next target at $ 162.50. The rising moving averages and the RSI in the positive zone suggest that the path of least resistance is up.
XEM / USD
NEM (XEM) rose on December 12, and the price hit the overhead resistance of $ 0.27688 today. The bears are currently trying to stop the uptrend in this resistance.
Unless the bulls are giving up much ground from current levels, however, it will indicate that traders are not booking profits in a rush. This could keep the price range near the overhead resistance.
The rising 20-day EMA ($ 0.209) and the RSI near the overhead resistance suggest that the path of least resistance is on the upside. If the bulls can push the price above $ 0.27688, the XEM / USD pair could move to $ 0.3564607.
The bears aggressively defend overhead resistance. If price rebounds from the 20 EMA, the prospect of a breakout of $ 0.27688 increases. The rising 20 EMA and the RSI in the positive zone suggest that bulls have the upper hand.
Contrary to this assumption, the trendline may decline if the price falls below the moving averages. A break below this support suggests that the bulls have lost their footing.
AAVE / USD
AAVE trades on an ascending channel. The price fell from the overhead resistance of $ 95 on December 8, but the positive sign is that the bulls bought the drop to the 20-day EMA ($ 77).
The RSI has bounced back from the midpoint and the 20-day EMA has appeared. This suggests that the correction may have ended and the bulls are back in control. The first goal on the upside is to retest the $ 95.
If the bulls can push the price above $ 95, the next leg of the uptrend could begin. The $ 100 psychological level may act as resistance, but if the bulls can break through the price, the AAVE / USD pair could climb to the resistance line of the channel at $ 112.
This bullish view will be invalidated if the price deviates from current levels and falls below the channel’s support line. Such a move suggests that the trend has turned in favor of the bears.
Price rose just above the ascending channel support line from $ 70,564, but the bears are trying to stop the relief rally at $ 86.14.
If the bulls can push the price above this resistance, the pair could rise to $ 95. A break above USD 95 could start the next leg of the uptrend.
On the other hand, if the price drops from $ 86.14, the pair can form the right shoulder of a possible inverted head and shoulders pattern. This view will be negated if the price drops below the USD 70.50 support.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.