The price of Bitcoin (BTC) continues to weaken following the liquidation of leveraged traders in the derivatives markets on November 10. This caused the financing rates of derivatives to fall to neutral territory of 0.01% on all exchanges.
Data analytics firm Arcane Research states in its latest weekly newsletter that derivatives markets have matured compared to racing to the previous all-time high in April. The firm noted that the basis of futures, the difference between the spot price of Bitcoin and the price of futures contracts, which was at high levels in April, has fallen significantly “indicating a healthier market.”
According to Bloomberg Senior ETF Analyst Eric Balchunas, ProShares’ Bitcoin futures exchange-traded fund (ETF) has exploded in popularity, and its average volume places it in the top 2% of all ETFs in terms of volume. trade.
Another sign of the growing popularity of cryptocurrencies is Grayscale Investments, whose assets under management exceeded $ 60 billion, overtaking the largest gold fund, SPDR Gold Shares (GLD).
In the short term, will Bitcoin and altcoins rebound from their strong support levels or will profit taking drag prices much lower? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin reversed direction from $ 69,000 on November 10 and fell to the 20-day exponential moving average ($ 62,532). The long tail of the daily candle indicated a large buying volume at the 20-day EMA.
However, the bulls were unable to take advantage of the November 11 bounce, indicating that they are hesitant to buy at higher levels. The bears have resumed selling earlier today and are trying to hold the price below the 20-day EMA.
If they succeed, the BTC / USDT pair could drop to the 50-day SMA ($ 57.048). The negative divergence in the Relative Strength Index (RSI) also warns that the bulls may be losing control.
Conversely, if the price rebounds from the current level, it will indicate that sentiment remains positive and traders continue to accumulate on dips. A breakout and close above $ 69,000 will resume the uptrend. The pair could then rise to $ 75,000.
ETH / USDT
Ether (ETH) turned down from $ 4,868 on November 10 and fell to the support line of the ascending channel. The bulls bought into this drop and tried to resume the bullish move on Nov. 11, but the higher levels again brought in selling.
The ETH / USDT pair fell back to the channel support line today. If the price rebounds from this level, the bulls will attempt to resume the uptrend by pushing the price above the all-time high of $ 4.868.
Rising 20-day EMA ($ 4,430) and RSI in the positive zone indicate an advantage for buyers. On the other hand, if the price breaks below the channel, it will be a sign that the bullish momentum has weakened. Then the pair could drop to critical support at $ 4,000.
BNB / USDT
Binance Coin (BNB) formed an outer candlestick pattern on November 10, as the price reversed direction from $ 662.90 and fell to the 20-day EMA ($ 573). A small upside is that the bulls bought the dips to the 20-day EMA, as seen in the long tail of the daily candle.
The BNB / USDT pair formed an intraday candlestick pattern on November 11, indicating indecision between the bulls and the bears. If the price falls below $ 600, the pair could touch the 20-day EMA again.
If this support breaks, the pair could drop to the 50% Fibonacci level at $ 552.30 and then to the 61.8% retracement at $ 524.70.
Conversely, if the price rises from the current level and breaks above $ 635.20, it will suggest a build-up at lower levels. So, the pair could attempt to touch the overhead resistance at $ 691.80.
ADA / USDT
Cardano (ADA) changed direction sharply and fell below the downtrend line and moving averages on November 10. This suggests that traders are aggressively selling at higher levels.
The bulls tried to push the price back above the downtrend line on November 11, but failed. New selling has pushed the price back below the 20-day EMA ($ 2.06) today. The ADA / USDT pair could now drop the critical support zone between $ 1.87 and $ 1.80.
A breakout and close below this zone will be very negative, as it could aggravate selling and cause a further decline to $ 1.50. The bulls will have to push and hold the price above $ 2.47 to gain traction.
SOL / USDT
Solana (SOL) tumbled to the support line of the ascending channel on November 10, but the bulls bought this decline with determination, as seen in the long tail of the daily candle. On November 11, they tried to push the price above the center line of the channel, but failed.
The bears sold at the higher levels and today they pushed the price back towards the support line. Repeated testing of a support level in a short interval tends to weaken it.
If the bears sink the price below the channel and strong support at $ 216, the SOL / USDT pair could drop to the 50-day SMA ($ 182).
Conversely, if the price rebounds from the current level strongly, the bulls will make one more attempt to resume the uptrend. If buyers push the price above $ 248, the pair could hit the all-time high of $ 259.90.
XRP / USDT
XRP sharply reversed its direction from $ 1.34 and plunged below the 20-day EMA ($ 1.16) on November 10. The long tail of the daily candle showed a strong buying at the lower levels. The bulls pushed the price back above the 20-day EMA on November 11, but could not get past the upper hurdle at $ 1.24.
This may have attracted selling from traders and the price has retraced to the 20-day EMA. If this support breaks, the XRP / USDT pair could slide to the 50-day SMA ($ 1.09). Such a drop will suggest that the pair may remain in a range for a few more days.
The 20-day EMA is flattening out and the RSI is also just above the midpoint, indicating a short-term consolidation. The next trend move can begin after a breakout above $ 1.41 or a break below $ 1.
DOT / USDT
Polkadot (DOT) plunged below the breakout level of $ 49.78 and the 20-day EMA ($ 47.35) on November 10, indicating that traders took profits in a hurry.
Buyers pushed the price above the 20-day EMA on November 11, but could not overcome the hurdle at $ 49.78. This attracted selling today and the DOT / USDT pair fell below the 20-day EMA.
If the price closes below the 20-day EMA, the pair could slide to the strong support of the 50-day SMA ($ 40.32). This level could again act as strong support, but any recovery is likely to see selling at the 20-day EMA. The bulls will have to push and hold the price above $ 49.78 to give a sign of strength.
DOGE / USDT
Dogecoin (DOGE) broke below the moving averages on November 10, but the bulls bought the decline as seen in the long tail of the candle. They pushed the price above the 20-day EMA ($ 0.26) on November 11 and today, but have been unable to sustain the higher levels. This indicates that the bears are selling on rallies above the 20-day EMA.
Both moving averages are flat and the RSI is just below the midpoint, indicating a balance between supply and demand. If the price breaks below the 50-day SMA ($ 0.24), the DOGE / USDT pair could drop to $ 0.22 and then to $ 0.19.
Conversely, if the price bounces off the 50-day SMA, the bulls will try to push the pair above the downtrend line. If they get their way, the pair could rally to $ 0.30 and subsequently hit the stiff overhead resistance at $ 0.34.
SHIB / USDT
SHIBA INU (SHIB) broke above the downtrend line and the 20-day EMA ($ 0.000053) on November 11, indicating that the bulls are trying to get back into play. However, the bears have other plans as they are trying to drag the price below the 20-day EMA today.
If successful, the SHIB / USDT pair could drop to the important support at $ 0.000043. A strong bounce from $ 0.000043 will suggest a build up to the lower levels. The pair could then consolidate between $ 0.000043 and $ 0.000065 for a few more days.
The flat 20-day EMA and the RSI near the midpoint indicate a short-term range action. The next trend move could start after the bulls push the price above $ 0.000065 or the bears sink the pair below $ 0.000043.
MOON / USDT
Terra’s LUNA token fell below the critical support of $ 49.54 on November 10, but the long tail of the candle shows a strong buy at the support line of the ascending wedge pattern.
The bulls pushed the price back above $ 49.54 on November 11, but they have not been able to sustain the higher levels. Strong selling from the bears has pushed the price to the 20-day EMA ($ 47.17).
A breakout and close below the support line will complete the bearish pattern, intensifying selling. There is little support at the 50-day SMA ($ 42.43), but if it breaks, the decline could extend to $ 35.29.
Contrary to this assumption, if the price rebounds from the current level, it will suggest a build-up at the lower levels. The LUNA / USDT pair could then rise again to $ 52 and later to $ 54.95.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves risks, you must carry out your own research when making a decision.
Market data is provided by the exchange HitBTC.