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The market-wide correction is likely to continue as Bitcoin and most major altcoins face higher levels of selling.

Bitcoin (BTC) price has been giving up gradually over the past few days. This has caused several investors to fear a sharp correction or a resurgence of a bear market like in 2018. However, there are big differences between the previous bull market and the current market.

The most striking difference is the arrival of institutional investors. The latest institution to take a position in Bitcoin is MassMutual, a Massachusetts-based insurance company that recently bought 5,470 BTC for about $ 100 million.

To date, various institutional players, from hedge fund managers to public companies, and now a 169-year-old insurance company have bought Bitcoin.

Institutional investors usually don’t abandon their assets with every fix because they only buy after considering long-term situations. Therefore, most price drops are seen as an opportunity to add to their assets.

Ruchir Sharma, chief global strategist at Morgan Stanley Investment Management, said the reign of the dollar as the world’s reserve currency could end and Bitcoin could become a beneficiary due to “growing distrust in traditional alternatives.”

With several institutional investors reiterating the bullish view regarding Bitcoin, any correction is likely to attract more institutions that could benefit from the drop to buy.

Let’s analyze the top 10 cryptocurrencies and identify critical support levels that buyers can step in.

Bitcoin

The long tail on the December 9 candlestick indicates that the bulls bought the decline below the 20-day exponential moving average ($ 18,283) but failed to sustain the momentum on December 10th. Bitcoin (BTC) again succumbed to selling pressure and closed below the 20-day EMA.

Today the bulls are again buying on dips as seen from the long tail on the candlestick. This shows that lows continue to attract buyers. The 20-day EMA has flattened and the relative strength index (RSI) is near the midpoint, indicating a short-term consolidation.

The BTC / USD pair is currently trading in a descending channel. If the bears break the price below the bullish line, the next support is at the lower trend line of the descending channel. If this support is also broken, the decline could extend to the 50-day simple moving average to $ 16,525.

The bulls are likely to defend the $ 16,191.02 level aggressively. If the price returns above this support, it will indicate a possible consolidation in a wide range. On the other hand, if the bulls can continue to recover and push the price above the 20-day EMA, the pair could rise to the upper trend line of the channel.

Breaking the channel could again lead to retesting the overall resistance zone of $ 19,500 to $ 20,000.

Ethereum

Ethereum (ETH) is currently trading in a descending channel. The bulls could not bear the December 9 recovery and the price dropped once again on December 10th. This shows that traders are selling at charity rallies.

The bears are currently trying to keep the price below the 20-day EMA ($ 558). If successful, the ETH / USD rate could drop to the next major support to $ 498,134, just below the 50-day SMA to $ 481. The bulls are likely to defend this area aggressively.

If the pair recover sharply from this zone, it will suggest a wide range of $ 488,134 to $ 622,807.

Contrary to this assumption, if the price moves above the current levels and above the channel, it will indicate that the correction may be over. The bulls will then try to push the price from $ 622,807 to the overall resistance.

Both possibilities have an equal probability because the flat 20-day EMA and the RSI near the midpoint indicate a balance between bulls and bears.

XRP
XRP returned from the $ 0.50 support and closed above the 20-day EMA ($ 0.54) on December 9. The price has dropped again today, but the bulls are trying to defend the 20-day EMA.

If the price stays above the 20-day EMA, it will indicate that the bears have lost their dominance. The fixed 20-day EMA and RSI above 52 indicate a balance between supply and demand.

If the bulls push the price above $ 0.60, the XRP / USD rate could range from $ 0.50 to $ 0.679 for several days.

If the bears pull the price below $ 0.50, this opinion will be invalid. In such a case, the pair could drop to the 50-day SMA at $ 0.39.

Litecoin

Litecoin (LTC) took only one day to recover on December 9, and the price dropped again on December 10th. This shows that the bears are selling at every small rally.

The bulls are currently trying to maintain the 50-day SMA ($ 69.73) just above the $ 68,9008 horizontal support. If the price retracts this support and moves above the 20-day EMA ($ 78), the LTC / USD rate could consolidate over a wide range over several days.

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On the other hand, if the pullback drops from the 20-day EMA again, the pair could drop to the $ 64,4482 support. The downward sloping 20-day EMA and the RSI below 45 show that the bears have the upper hand.

Bitcoin Cash

Moving averages serve as support in an uptrend. But when the emotion goes down, it acts like resistance. Bitcoin Cash (BCH) attempted a recovery on December 9th, but failed to climb above the 50-day SMA ($ 271).

This shows that traders sold after a pullback to the 50-day SMA and the price has started its downward movement today. There is little support between $ 254.82 and $ 246.85. A break below this zone could lower the price to $ 231.

Should the price come back on this support, the BCH / USD rate could stay tied in the price range between $ 231 and $ 280 for several days. However, if the $ 231 support is broken, the pair could drop to $ 200.

The falling 20-day EMA ($ 278) and the RSI in the negative zone give the bears an advantage. This downward view will be invalid if the price breaks above the $ 280 resistance and continues.

Chainlink

Chainlink’s (LINK) bounce off the uptrend line came back from the 50-day SMA ($ 12.69) on December 10th. The inability to move above the downtrend line resulted in more sales that pushed the price below the rising trend line.

The moving averages are on the verge of a bearish trend and the RSI is below 41, suggesting that the bears are in control. If the LINK / USD pair closes below the uptrend line, the decline could come to $ 9.75.

This negative view will be invalid if the price turns and goes above the moving averages. Such a move will indicate a strong buy at lower levels.

Cardano

The bulls could not stand the sharp recovery in Cardano (ADA) on December 9. This indicates that sentiment has turned negative and traders are currently selling at the 20-day EMA ($ 0.145) during rallies.

The ADA / USD pair has strong support at $ 0.13. If the price recovers from this level and moves above the downtrend line, it will indicate that the short term correction may be over. The next move in the upward direction could be $ 0.155.

Both moving averages are flattening and the RSI is just below the midpoint. This shows the action depending on the price range of several days.

This view will be invalid if the bears pull the price below the $ 0.13 support and the 50-day SMA ($ 0.123). In such a case, the pair could slide to $ 0.117 and then to the $ 1 support.

Polkadot

Polkadot (DOT) returned from the 50-day SMA ($ 4.73) on December 9, but the bulls couldn’t even extend the recovery to the 20-day EMA ($ 4.97). This shows that traders are selling at every small rally.

The price fell on December 10th and broke the 50-day SMA today. There is a small support at $ 4.4342, but if the bulls cannot hold this level, the DOT / USD pair could drop into the support zone of $ 3.80 to $ 3.5321.

The falling 20-day EMA and the RSI in the negative zone indicate that the bears are dominating. If the pair returns from current levels and breaks above the downtrend line, this negative view will be invalidated.

Binance Coin
The bailout on December 9 ended in a fiasco at $ 28.3853, and Binance Coin (BNB) resumed its journey from $ 25.6652 to critical support. This level can attract buyers as it did twice before.

A strong recovery of critical support could limit the BNB / USD pair between $ 25.6652 and $ 32 for a few more days.

On the other hand, if the bears sink and keep the price below $ 25.6652, the pair could drop to $ 22 and then $ 18. The gradually descending 20-day EMA ($ 29) and the RSI below 41 show that the bears are currently dominating.

Stellar Lumens

Stellar Lumens (XLM) recovered sharply on December 9 and recovered in the bearish trend line. However, the bulls could not push the price above the $ 0.18 resistance. This again drove sales and the price dropped below the 20-day EMA ($ 0.159).

The flat 20-day EMA and the RSI near the midpoint suggest several-day price range action from $ 0.14 to $ 0.18. A break above $ 0.18 would give the bulls an advantage and could result in a move towards $ 0.21.

Conversely, if the XLM / USD rate drops below $ 0.14, the sale may intensify and the decline may extend to the 50-day SMA ($ 0.118).

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