The current weakness of BTC and major altcoins shows that investor sentiment remains negative and bears are active at higher levels.
The FTX crisis kept the Bitcoin (BTC) price under pressure in November, but data from the Bitstamp exchange shows that institutional investors may have seen the drop as a buying opportunity. The exchange told Cointelegraph that compared to October, its income from institutions increased 34% in November.
In another positive sign, Goldman Sachs executive Mathew McDermott told Reuters the bank was doing due diligence on cryptocurrency firms as they were “more sensibly priced” after the FTX crash.
ARK Invest said in the latest edition of its monthly newsletter “The Bitcoin Monthly” that the FTX implosion “could be the most damaging event in cryptocurrency history,” but added that decentralized blockchains were “as strong as forever”.
Could lower levels attract buyers in Bitcoin and altcoins? Let’s study the charts of the top 10 cryptocurrencies to spot the levels where buyers can step in.
BTC/USDT
After trading near the 20-day exponential moving average ($16,966) for the past few days, Bitcoin is threatening to drop below the immediate support of $16,787.
If that happens, the short-term advantage could tilt in favor of the bears and the BTC/USDT pair could drop to $16,000. Such a move will suggest that the pair could remain stuck between $15,476 and $17,622 for a few more days. The longer it spends within the range, the stronger the breakout will be.
On the upside, the bulls will have to push and hold the price above the 50-day simple moving average ($18,122) to gain an advantage. Then the pair could pick up momentum and rally to $20,000.
ETH/USDT
After trading between the moving averages of the past few days, Ether (ETH) broke below the 20-day EMA ($1,250) on December 7. This suggests that the bears have beaten the bulls.
If the price sustains below the 20-day EMA, the ETH/USDT pair could dip to $1151 and then the important support at $1073.
Conversely, if the price rallied quickly and rallied back above the 20 day EMA, it will suggest strong buying on dips. That could increase the probability of a break above the 50-day SMA ($1331). Above this level, there is no significant resistance until the pair reaches the downtrend line of the descending channel.
BNB/USDT
The bulls tried to push BNB (BNB) above the above $300 resistance on Dec. 5, but the bears held their ground. The sellers strengthened their position on Dec. 7 by pushing the price below the immediate support of $285.
If the price sustains below $285, the BNB/USDT pair could drop to $275. This level can act as minor support, but if it is broken, the selling could pick up and the pair could sink to the crucial support of $250.
If the bulls want to avoid the slide, they will have to push and hold the price above $300. That could catch the aggressive bears on the wrong foot and push the price towards the overhead resistance at $338. This level may be witnessed again a tough battle between the bulls and the bears.
XRP/USDT
The bears successfully defended the 20-day EMA ($0.39) in the past few days and pulled XRP (XRP) below the uptrend line on Dec. 7. This invalidates the developing ascending triangle pattern.
The buyers will try to salvage the situation by defending the strong support at $0.37. If the price bounces off this level and breaks above the 20-day EMA, the XRP/USDT pair may consolidate between $0.37 and $0.41 for some time. A break and close above $0.41 will suggest the start of a new move higher.
The bears likely have other plans. They will try to break the support at $0.37 and push the price up to $0.34. That could keep the pair range bound between $0.30 and $0.41 for a few more days.
ADA/USDT
Cardano (ADA) failed to hold above the 20-day EMA ($0.32) on Dec. 5, which may have tempted short-term buyers to close their long positions and bears to set up new short positions.
The sellers will try to push the price below the crucial support of $0.29, but they may face strong resistance from the bulls because if the level gives way, the ADA/USDT pair could signal the resumption of the downtrend.
Although the trend is down, the RSI is maintaining its bullish divergence. This suggests that lower levels may attract buyers. The first sign of a sustainable recovery could be at a break and close above $0.33. The pair could then rally to the downtrend line.
DOGE/USDT
The long wick on the Dogecoin (DOGE) candlestick for Dec 5 shows that the bears are defending the 50% Fibonacci retracement level at $0.11.
The DOGE/USDT pair turned down and broke below the 20-day EMA ($0.09) on Dec. 7, but one minor upside is that the bulls are buying dips to the 50-day SMA ($0.09). If the price bounces off the current level, the pair could rally back to $0.11.
The RSI has fallen near the center, which suggests that the bullish momentum may be waning. The bears can try to pull the price below the 50-day SMA and gain advantage. If successful, the pair could gradually slide towards $0.07.
MATIC/USDT
The buyers tried to push Polygon (MATIC) above $0.95 on Dec. 5, but the bears vigorously defended the level. The price turned lower and broke below the 20-day EMA ($0.90) on the 7th of December. This indicates that the efforts of the bulls to turn the 20 day EMA into support have failed.
The bears will try to take this opportunity and drag the price to the uptrend line. This is an important level to watch as it has been successfully defended by the bulls on three previous occasions. If this support collapses, the MATIC/USDT pair could slide to the crucial support at $0.69.
This negative view will be invalidated in the short term if the price rises and breaks above the overhead resistance at $0.97. That could clear the way for a potential rally to $1.05.
DOT/USDT
Polkadot (DOT) repeatedly broke above the 20-day EMA ($5.50) on December 2-5, but the bulls were unable to take advantage of this strength. This shows that demand is drying up at higher levels.
The bears will try to resume the downtrend by pulling the price below the strong support of $5. If they do that, the DOT/USDT pair could plummet to $4.32.
Another possibility is that the price bounces off $5. That will signal strong buying at the lower levels. Then the bulls will try to push the price above $5.73. If they can pull it off, it could indicate a double bottom pattern. The pair could then rally to $6.18 and then to the pattern target of $6.46, which is close to the downtrend line.
USDT/LTC
Litecoin (LTC) broke above the $84 resistance on Dec. 5, but the long wick on the day’s candle shows it is selling at higher levels. This may have tempted short-term traders to book profits, which has pushed the price towards the breakout level of $75.
The moving averages are sloping higher, but the RSI has formed a bearish divergence, indicating that buying pressure may be easing. A break and close below the 20-day EMA ($74) could improve the prospects for a drop to the 50-day SMA ($64).
Conversely, if the price bounces off the 20-day EMA ($74), it will suggest that the trend remains positive and traders are buying dips. Then, the bulls will make one more attempt to clear the overhead hurdle at $85 and push the LTC/USDT pair towards $104.
UNI/USDT
Uniswap (UNI) broke above the 50-day SMA ($6.16) on Dec. 2, but the bulls could not sustain the buying pressure and pushed the price to the resistance line of the symmetrical triangle pattern.
The price turned lower on December 7, and the bears are trying to sink the price below the 20-day EMA ($5.92). If this level does not hold, the selling momentum could increase and the UNI/USDT pair could fall to the support line of the triangle.
Alternatively, if the price rises above $6.55, it will tip the short-term advantage in favor of the buyers. The pair could then rally to the resistance line where the bulls can once again find strong selling by the bears. The next trend move could start with a break above or below the triangle.
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