Bitcoin (BTC) fell below $ 56,000 on November 19, completing a correction close to 20% from the all-time high. The Crypto Fear & Greed Index, which remained in the greed zone for most of the past two months, has plunged into the fear category with a reading of 34.
The cryptocurrency research firm Delphi Digital said in a recent report that the Bitcoin sell-off was “largely driven by a wave of sell-offs rather than a fundamental shift in narrative,” and analysts expect the reduction to be “relatively brief.”
The recent correction does not appear to have affected long-term holders. According to the Hodl Waves metric, the supply of investors who bought during the last 6 to 12 months has skyrocketed to 21.4% as of November 17 compared to 8.7% in early June.
Could lower levels attract strong buying, resulting in a strong rally, or will bears sell on rallies? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin bounced off the 50-day simple moving average ($ 59,718) on November 17, but the fact that the bulls did not push the price above the 20-day exponential moving average ($ 61,696) indicates that the buy is exhausted in the highest levels.
The BTC / USDT pair tumbled and closed below the 50-day SMA on November 18. The moving averages are on the verge of a bearish crossover and the Relative Strength Index (RSI) is in negative territory, indicating that the bears are to the top. hand.
If the bulls fail to push and hold the price above the moving averages, selling may intensify and the pair could fall to the support zone between $ 52,500 and $ 50,000.
Conversely, if the bulls push the price above the moving averages, the pair could move up to the downtrend line. This level can act as a hurdle, but if the bulls push the price above it, the pair can climb to the upper zone between $ 67,000 and $ 69,000.
ETH / USDT
Ether (ETH) rallied from the 50-day SMA ($ 4,082) on November 17, but the bulls were unable to overcome the overhead hurdle at the 20-day EMA ($ 4,387). This intensified selling and the price fell below the 50-day SMA on November 18.
The bears were unable to sustain the selling pressure at lower levels, which may have attracted strong buying from the aggressive bulls. The bulls have pushed the price back above the 50-day SMA today and the ETH / USDT pair could now reach the 20-day EMA, where the bears may again pose a stiff challenge.
If the price turns down from the 20-day EMA, the bears will try to drag and hold the pair below $ 3,956.44. That could clear the way for a possible pullback to $ 3,371. Alternatively, a breakout and close above the 20-day EMA will indicate that the corrective phase may be over. The pair could retest the all-time high.
BNB / USDT
Binance Coin (BNB) fell to the 50-day SMA ($ 517) on November 18, but today’s strong bounce indicates an aggressive buy at the lower levels. The bulls will now try to push the price above the 20-day EMA ($ 585).
If the BNB / USDT pair sustains above the 20-day EMA, it will indicate that the short-term correction may be over. The pair could then move up to the upper resistance zone between $ 669.30 and $ 691.80, where the bears can get back to theirs.
The breakout and close above the overhead resistance could signal the resumption of the uptrend. Conversely, If the price turns down from the 20-day EMA, the probability of a breakout below the 50-day SMA increases. Then the pair could drop to the Fibonacci retracement level of 78.60% at $ 485.40.
SOL / USDT
The bulls tried to push Solana (SOL) above the 20-day EMA ($ 221) on November 17 and 18, but the bears were in no mood to budge. Failure to overcome this hurdle may have attracted a sell-off from traders on November 18, pushing the price to the 50-day SMA ($ 195).
Aggressive buying at lower levels has resulted in a strong bounce today, indicating that the bulls are defending the 50-day SMA support.
If buyers push the price above the 20-day EMA, the SOL / USDT pair could move up to the downtrend line. A breakout and close above the downtrend line could improve the prospects for a resumption of the uptrend.
Contrary to this assumption, If the price turns down from the 20-day EMA, the bears will make one more attempt to bring the pair below the 50-day SMA and the trend line. If they manage to do that, the selling could intensify and the pair could drop to $ 140.
ADA / USDT
The long tail of the November 16-17 candle shows that the bulls tried to defend the strong support at $ 1.87. However, the failure to hold Cardano (ADA) above $ 1.87 may have led to aggressive selling from traders on November 18.
The bulls are trying to push the price back above $ 1.87. If they manage to keep the price above this level, it could catch the most aggressive bears. That could start a strong recovery that could hit the downtrend line.
Contrary to this assumption, if the price turns down from the current level or the 20-day EMA ($ 1.99), it will suggest that sentiment is still negative and traders are selling on rallies. The bears will attempt to carry the pair below $ 1.70, extending the slide to $ 1.50.
XRP / USDT
The bulls pushed XRP above the moving averages on November 18, but the long wick in the candle shows aggressive selling at the higher levels. The price dropped to the psychological support at $ 1 where the bulls are mounting a strong defense.
A bounce from the current level could again face a strong sell near the moving averages. If the price turns down from the 20-day EMA ($ 1.13), the bears will try to sink the XRP / USDT pair below $ 1.
If they can pull it off, the pair could extend its slide to the next support at $ 0.85. Selling may accelerate below this support.
Conversely, if the bulls push and hold the price above the moving averages, the pair could rise to the overhead resistance at $ 1.24.
DOT / USDT
Polkadot (DOT) broke below horizontal support at $ 38.70 on November 18, but the bulls intervened and halted the decline at the uptrend line. The strong rally shows strong demand at lower levels.
However, the falling 20-day EMA ($ 45) and the RSI in the negative zone indicate that the bears are in command. The bounce is likely to face stiff resistance in the zone between $ 43.27 and the 20-day EMA.
If the price turns down from the upper zone, the bears will try to pull the DOT / USDT pair below $ 37.53. A close below this level will complete a bearish head and shoulders pattern, signaling the start of a deeper correction. Conversely, if the bulls push the price above the 20-day EMA, the pair could rally to $ 47.83.
DOGE / USDT
Dogecoin (DOGE) fell to strong support at $ 0.21 on November 18. This level has acted as support during the previous two declines and today’s bounce shows that the bulls are trying to start a relief rally.
The recovery is likely to face stiff resistance at the downtrend line. The falling 20-day EMA ($ 0.25) and the RSI in negative territory indicate that bears have the upper hand.
If the price turns down from the downtrend line, the bears will again try to sink the DOGE / USDT pair below $ 0.21. If that happens, the pair could slide towards the critical support at $ 0.19.
This negative view will invalidate if the bulls push and hold the price above the downtrend line. Then the pair will attempt a rally to $ 0.30.
SHIB / USDT
SHIBA INU (SHIB) fell below the critical support at $ 0.000043 on November 18, but the bears were unable to sink the price below the 50-day SMA ($ 0.000041). This indicates that the bulls aggressively bought at lower levels.
The relief rally is likely to face stiff resistance at the 20-day EMA ($ 0.000051). If the price falls from this resistance, it will suggest that the sentiment has turned negative and traders are selling when the price rises.
The bears will make one more attempt to push the price below the 50-day SMA. Such a move could accelerate selling and the SHIB / USDT pair may complete a 100% pullback and drop to $ 0.000027.
Conversely, a breakout and close above the 20-day EMA will be the first indication that the correction may be over. The pair could then rise to $ 0.000057 and then to $ 0.000065.
AVAX / USDT
Avalanche (AVAX) was down from $ 110.41 on November 18, but the long tail of the candle shows that the bulls continue to buy at the lower levels.
The rising 20-day EMA ($ 88) and the RSI near the overbought zone indicate that the bulls are in control. Buyers are trying to resume the uptrend by pushing the price above the all-time high.
If they are successful, the AVAX / USDT pair could start its journey towards $ 115.14 and then to the 161.8% Fibonacci extension level at $ 128.01.
Alternatively, if the bulls fail to sustain the price above $ 110.41, the pair could witness earnings reserve and drop to the 20-day EMA. A breakout and close below this support could indicate that the uptrend may be losing steam. The pair could then drop to $ 81.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you should do your own research when making a decision.
Market data is provided by the exchange HitBTC.
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