Michael Sellor, CEO of MicroStrategy recently tweeted that he bought an additional 29,646 bitcoin (BTC) at an average price of $ 29,646. With this purchase, the company spent $ 650 million taken from a recent convertible debt offering. The business intelligence company now owns 70,470 bitcoins, making it the fifth largest single owner of bitcoin.

Bitcoin’s current bullish rally has been largely driven by institutional investors. Analysts at JPMorgan Chase believe that for the trend to continue, new institutional money must continue to pour in, as they have in recent weeks, or else Bitcoin might see a correction.

Each bullish stage is accompanied by several sharp corrections, and Bitcoin’s current bullish rally is likely not an exception. However, when the main trend rises, investors see dips a buying opportunity as they open a lower risk entry point. Therefore, if Bitcoin corrects itself, it is likely that more new investors will show interest so that the uptrend will remain unchanged.

This hint can be seen in a conversation between Sailor and Tesla boss Elon Musk. Sailor Tesla Offer to Transfer Balance From USD to Bitcoins. Musk didn’t reject the idea, but did ask if such a big deal was possible.

In response, Sailor said he was willing to share his text with Musk so he could see how it was done. If a reputable company like Tesla switches to Bitcoin, there could be an insistence on the part of many others.

Let’s take a look at the top 10 cryptocurrency maps to identify the critical levels of both growth and decline.

Bitcoin / USD
The bulls pushed Bitcoin above $ 24,000 on December 19 and 20, but buyers were unable to maintain higher levels each of those days. This indicates that bears are showing strong resistance in the $ 24,000 to $ 25,000 region.

Impulse traders usually dump their positions when they find that the rally has stalled. It appears to have happened today, which brought the price down to $ 21,934.83. However, the long tail of today’s candlestick shows that investors are buying aggressively in times of recession.

Today’s drop weakened the overbought RSI levels, which is a positive sign. This means that the bulls will likely try to resume the trend. If they succeed, $ 26,958 could be met.

However, if the price reverses from its upper resistance zone, the Bitcoin / USD may remain in range for several days. The pair remains in a strong trend as long as the price remains above the critical support of $ 20,000.

Breaking and ending this support would be the first sign that demand is drying up at higher levels, and this sentiment could shift from buying on deflation to selling on rallies. Under $ 20,000, the pair may drop to the 50-day simple moving average ($ 18,136).

ETH failed to gain momentum after breaching the ascending triangle pattern on December 16th. Failure to resume the trend could attract profits from traders in the short term, returning the price to the breakout level of $ 622,807. Today.

However, the bulls are currently trying to defend the 20-day exponential moving average ($ 599). If they succeed, the ETH / USD pair will attempt to resume the trend. A break above $ 676,325 could bring the $ 763,614 pattern back into play.

The 20 day moving average is fading and the RSI is just above 54, indicating that the uptrend is losing momentum. If the bears defend the resistance zone between $ 660 and $ 676.325, the pair may enter consolidation for several days.

Contrary to this assumption, interest may shift in favor of the bears, if the price falls below the 20-day moving average and the ascending triangle.

XRP is currently in the range of $ 0.435 to $ 0.6794. On December 17th, the alt currency diverged from range resistance and today breached the 20-day moving average ($ 0.543).

The price can now fall to $ 0.435 support as the buyers can enter. Since the range is well defined with two touches up and down, traders are more likely to buy near support and nearly sell resistance.

The flat 20-day EMA and RSI just below the midpoint indicate the possibility of more days of limited range movement. The XRP / USD pair can start training if the price rises above $ 0.6794 or dips below $ 0.435.

Litecoin (LTC) increased the trend to $ 124.1278 on Dec.19, and the price is currently correcting the last leg of the rally. Bulls are trying to stop the 50% Fibonacci retracement at $ 101.1868.

Source: CoinTelegraph