27th December was a good day for the crypto market as we saw Bitcoin above $50k. The prices of altcoins also saw a good jump with most registering double-digit gains. We also saw DOT pump above $30 and LINK nearing $25. Well, the market was looking bullish but yet again BTC couldn’t clear the resistance near $52k and fell back. It is currently trading at $49k and as Bitcoin falls back below $50k again it has pulled down the prices of altcoins.
BTC price action
As you can see in the above chart we are forming support on the downtrend line and moving back up again to test resistance. After the crash from the ATH of $69k, we tried to break $52k thrice but were unsuccessful. And it was followed by strong pullbacks. This time too we can expect to take support from the downtrend line and then try again.
Unless Bitcoin is able to break $52k we won’t see much of a rise in altcoins. While all of them saw a good pump the past couple of days, it was also followed by a quick correction today. The level $49,300 is also an important level of support that has been broken and bulls might try to retest it. In case, it is cleared then we might see another shot at $52k really soon. I am bullish that this time we might be able to break it.
After clearing $52k we have another strong resistance at $54k which is the 50-day MA which could pose some resistance to the price movement of BTC to higher levels. So, it is important to note that breakout above $55k won’t be easy and it is important to trade with caution.
Until BTC is able to maintain a strong position above $50k, altcoins are unlikely to do well. Yes, some rise here and there will be there but there will be stronger corrections as well and we will be back where we were. I am bullish about alts in 2022 and looking forward to DOT, ADA, LINK, and UNI doing really well.
What are your thoughts as Bitcoin falls back below $50k again and pulls altcoins back? And what are your top altcoins picks for 2022? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.