After a drop to $40,300, the leading cryptocurrency, Bitcoin, swiftly recovered to surpass the $41,500 level. Here's an in-depth analysis of the market conditions for Bitcoin (BTC) and Solana (SOL) as of Tuesday, December 12.
Bitcoin (BTC)
Currently, the asset is trading sideways between the support level of $41,400 and the resistance level of $42,500. BTC is likely to move within this range for some time, possibly 2 or 3 days, as the market seeks to stabilize.
As long as the asset is trading below key resistance zones at $42,700โ$43,300 and $43,850, the possibility of further correction remains high. Under such conditions, Bitcoin might decline below the $40,000 mark, testing the buyer's support at around $39,000 and possibly setting new lows.
The uptrend for BTC can only resume if it breaks and sets a new annual high. If this happens, BTC could potentially reach and challenge the resistance level at $45,300.
BTC chart on the M30 Timeframe
Solana (SOL)
Although Solana reacted to BTC's downturn, the asset has nearly rebounded from its correction and is poised to resume its upward movement. Currently, SOL's price is caught in a horizontal channel, sandwiched between the support at $66.9 and resistance at $62.3.
There's a significant chance that buyers will successfully break above the resistance zone of $73.14โ$75.00, paving the way for further growth. In this scenario, SOL could retest its yearly high at around $77.77 and possibly approach the $80 resistance level.
A further correction in SOLโs chart is dependent on BTCโs movements. If BTC experiences a downturn, Solana could fall to the buying zone of $66.7โ$65 and might even reset its local low to around $61.7.
SOL chart on the M30 Timeframe
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) โ a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) โ the price movement between support and resistance levels, without going beyond the given range.
ะ โ simplified designation of one thousand dollars of the asset price (for example, 23.4K โ $23,400).
Gray range on the chart โ a support zone.
Red range on the chart โ a resistance zone.
Correlation โ the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
