Bitcoin Faces Crucial Test Around $40K Support; Altcoins at Pivotal Levels Too
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Bitcoin failed to rebound sharply after Dec 11 fall, showing selling pressure on relief rallies as short-term holders rushed to sell holdings. However, lower levels are attracting buyers.
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BTC remains on track to hit $50,000 despite correction. Chances of cascading liquidations are low as sell-off seems driven by spot market rather than derivatives.
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Important BTC support levels to watch are the 20-day EMA ($40,870), 50-day SMA ($37,707), and overhead resistance at $44,700. A break below 20-day EMA could trigger a drop to 50-day SMA.
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Altcoins like ETH, BNB, XRP, SOL, ADA, DOGE also at critical technical levels that will determine if they bounce back or sell-off further. Levels to watch are the 20-day/50-day SMAs.
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Polygon's rally stalled below $0.89 resistance level on profit-taking. Failure to get back above $0.89 could start a deeper correction towards $0.70 support.