Track to end the year with a loss of about 65%. This will be the third negative year for Bitcoin, with the other two being in 2014 and 2018. In comparison, the S&P 500 has fared much better, but it is also down nearly 20% in 2022.

Although cryptocurrency prices have seen significant cuts this year, traders have continued to pour money into the space. Forty-one percent of people who responded to an online survey conducted by Blockchain.com have purchased cryptocurrency this year, and 40% plan to purchase cryptocurrency in the next year.

Daily cryptocurrency market performance. Source: Coin360
However, a sustained recovery in risky assets may only occur after inflation shows signs of slowing. This would raise expectations about the US Federal Reserve shifting from aggressive monetary tightening to expansionary policy.

In the short term, markets may remain volatile as trading volumes are likely to remain subdued during the holiday season. Can Bitcoin and Altcoins Begin to Recover? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC/USDT
bitcoin
BTC

cursors down
$16,810

It is trying to hold onto the 20-day exponential moving average ($16,955). The bears tried to lower the price on Dec 22, but the long tail on the candle shows strong buying on dips.

BTC/USDT daily chart. Source: TradingView
The bulls will try to remove the upper barrier at the moving averages. If they succeed, the BTC/USDT pair can pick up its pace and rise to the strong resistance at $18,388. This is an important level to watch because a break and close above it could attract massive buying. The pair could then rise to $21,500.

If the bulls fail to push the price above the moving averages, it will indicate a lack of demand at the higher levels. Bears will try to take advantage of this opportunity and pull the pair below $16,256. If they do, the pair could drop to the $15,476 support.

ETH/USDT
ether
ETH

cursors down
$1,221

The bounce from $1,150 is facing strong resistance at the 20-day moving average ($1,230) over the past two days. Sellers tried to pull the price lower on Dec 22nd, but the long tail on the candle shows strong buying at lower levels.

ETH/USDT daily chart. Source: TradingView
The 20-day moving average is flat, and the RSI is just below the midpoint, indicating a balance between buyers and sellers. A break above the 50-day SMA ($1,259) could tilt the near-term advantage in favor of the bulls. After that, the ETH/USDT pair could rise to $1,352.

Sellers will have to drop the price below the immediate support at $1,150 to gain the upper hand. Such a move would complete a bearish head and shoulders pattern in the near term. The pair could first drop to $1,075 and then drop to the target target of $948.

BNB/USDT
BNB
BNB

cursors down
$246

It is consolidating near the $250 breakdown level for the past few days. This suggests that the bears are protecting this level, but a positive sign is that the bulls haven’t given up too much ground.

BNB/USDT daily chart. Source: TradingView
If the price rises above $255, it could catch many bears who may rush to close their short positions. This could result in a short squeeze, which could push the price to the 50-day SMA ($283) and then to $300.

Alternatively, if the price breaks below the current level and drops below $236, it would indicate that the bears are still in control. The sellers will then try to plunge the price below $220 and extend the decline to the psychological support at $200.

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