Bitcoin and most of the major altcoins are struggling to find bullish momentum, a possible sign that prices could continue to erode.
Bitcoin (BTC) and most of the major altcoins continue to be below their respective overall resistances, indicating that bears are selling on rallies.
According Ki Young Ju, CEO of on-chain analytics firm CryptoQuant, “Whales are depositing Bitcoin on exchanges.” Interestingly, withdrawals from exchanges have also continued and because of this, reserves are still near their lowest levels since mid-2018.
In a somewhat contradictory report, Glassnode said long-term holders may be “cutting their expenses and therefore more likely to add positions, not abandon them.”
While Bitcoin has been in a corrective phase in dollar terms, It has proven to be a purchasing power savior for Turkish investors. While the lira continues to lose value in 2021, Bitcoin in lira terms has been regularly hitting new all-time highs and crossed 700,000 lira on November 23.
Let’s study the charts of the top 10 cryptocurrencies to find out if it’s time for a bounce or could the correction get even deeper?
BTC / USDT
The bulls are trying to stop the correction near $ 55,000, but the bears are unwilling to budge. Bitcoin’s relief rally on November 23 fell from $ 58,000, indicating that bears are attempting to convert this level into resistance.
The moving averages have completed a bearish crossover and the Relative Strength Index (RSI) continues to languish in negative territory, indicating that bears have the upper hand.
If the price falls below $ 55,317, the selling may intensify and the BTC / USDT pair could fall to the support zone of $ 52,500 to $ 50,000. The bulls are likely to defend this zone aggressively, but the subsequent bounce may face selling at the 20-day exponential moving average ($ 60.084).
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ANDThis negative view will be invalidated if the price rises from the current level and breaks above the downtrend line. The pair could then try to resume the uptrend.
ETH / USDT
Ether (ETH) rallied from near the neckline of the developing head and shoulders (H&S) pattern on November 22. The neckline bounce reached the 20-day EMA ($ 4,337) on November 23, which is acting as strong resistance.
If the price turns down from the current level and breaks below the 50-day simple moving average ($ 4,169), the bears will again try to pull the ETH / USDT pair below the neck. If they are successful, it will complete the bearish pattern, which has a target of $ 3,047.
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Conversely, if the bulls push the price above the 20-day EMA and resistance at $ 4,451, it will suggest that the selling pressure may be easing. Then the pair will try to climb to the upper resistance zone at $ 4,772.01 to $ 4,868. A breakout and close above this zone will signal the resumption of the uptrend.
BNB / USDT
Binance Coin (BNB) turned down from $ 605.20 on November 21 and fell back below the 20-day EMA ($ 584). However, the bears were unable to take advantage of this weakness and lower the price to the 50-day SMA ($ 532).
This indicates that the bulls are building to lower levels. Buyers tried to overcome the general hurdle on November 23, but the bears again defended this level aggressively. The price is currently hovering around the 20-day EMA.
If the price rises from the current level and breaks above $ 605.20, the BNB / USDT pair could attempt to challenge the resistance at $ 669.20. If this level is crossed, the pair could retest the all-time high at $ 691.80.
Conversely, if the price sustains below the 20-day EMA, the bears will again try to push the pair to the 50-day SMA. A breakout and close below this support could signal the start of a deeper correction.
SOL / USDT
Solana (SOL) broke below the 20-day EMA ($ 219) on November 22. The bulls pushed the price above this level on November 23, but were unable to sustain the higher levels. This indicates that the bears are defending the 20-day EMA.
The bears will now try to bring the price to the support line of the symmetrical triangle. This is an important level for the bulls to defend because a break below it could tip the lead in favor of the bears. The SOL / USDT pair could start its downward move to $ 153 and then $ 140.
Alternatively, if the price rises and breaks above the resistance line, it will indicate that the bulls have the upper hand. The pair could then rally to the all-time high of $ 259.90, where the bears are expected to mount strong resistance.
ADA / USDT
Cardano (ADA) turned down the 20-day EMA ($ 1.90) on November 21 and the bears have pulled the price below the critical support at $ 1.70 today. If the bears hold the price below $ 1.70, the selling momentum can rebound.
The falling averages and the RSI near the oversold zone indicate that the bears are in control. The ADA / USDT pair could now drop to strong support at $ 1.50, where buyers are expected to intervene.
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On the upside, the bulls will have to push and hold the price above the 20-day EMA to indicate that the selling pressure may be easing. The trend can turn in favor of the bulls on a breakout and close above the downtrend line.
XRP / USDT
XRP rebounded from psychological support at a dollar on November 23, but the bulls have been unable to carry the price to the 20-day EMA ($ 1.10). The shallow bounce indicates that the bears continue to sell on each minor relief rally.
The bears will once again attempt to sink and hold the price below the strong dollar support. If they manage to do that, the selling could accelerate and the XRP / USDT pair could fall to the critical support at $ 0.85.
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The falling 20-day EMA and the RSI in the negative zone suggest that the path of least resistance is to the downside. This negative view will be invalidated if the price rises and breaks above the 50-day SMA ($ 1.12). That could open the doors for a possible rally to $ 1.24.
DOT / USDT
Polkadot (DOT) rallied from the uptrend line on November 23, but the bulls were unable to sustain the higher levels. The price fell again and fell to the uptrend line.
Pulling back several times to a support level tends to weaken it. The moving averages have completed a bearish crossover and the RSI is below 40, indicating that the bears are in command.
If the price breaks down and closes below $ 37.53, the DOT / USDT pair will complete a bearish H&S pattern. The pair could begin a deeper correction towards $ 26.
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Conversely, if the price bounces off the current level, the bulls will make one more attempt to break past the barrier at $ 43.56. If they can pull it off, it will be a sign that sellers may be losing control.
DOGE / USDT
Dogecoin (DOGE) bounced off the critical support at $ 0.21 on November 23, but the long wick in the day’s candle suggests that the bears continue to sell near the downtrend line.
The DOGE / USDT pair broke below the $ 0.21 support today and the bears will now try to push the price to the critical support at $ 0.19. This is important support for the bulls to defend because if it breaks down, the pair could plummet to $ 0.15.
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The falling 20-day EMA ($ 0.24) and the RSI below 37 indicate that the bears have the upper hand. The first sign of strength will be a breakout and close above the downtrend line. That will signal a possible comeback from the bulls.
AVAX / USDT
The bulls failed to push Avalanche (AVAX) above the all-time high at $ 147 on Nov. 22, indicating that the bears are aggressively defending overhead resistance. This may have caused short-term traders to reserve profits.
The AVAX / USDT pair has started a correction that could find strong support in the zone between the 38.2% Fib retracement level at $ 112.63 and the 20-day EMA ($ 103).
If the price bounces in this zone, it will suggest that sentiment remains positive and traders are buying on dips. The bulls will make one more attempt to push the pair above the all-time high and resume the uptrend.
Alternatively, a breakout and close below the 20-day EMA will indicate that supply exceeds demand. Then the pair could drop to the 61.8% Fib retracement level at $ 91.39.
CRO / USDT
Crypto.com Coin (CRO) has been on a strong bullish trend for the past few days. The vertical rally has pushed the RSI close to 90, indicating that the rally is overheated in the near term. This could result in a small correction or consolidation for a few days.
The bullish move may witness the profit reserve near the psychologically important barrier of $ 1. If that happens, the CRO / USDT pair could initiate a correction. The first major support on the downside is the 38.2% Fib retracement level at $ 0.73.
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Vertical spikes are generally followed by sharp declines. If the price breaks below $ 0.73, the correction can extend to the 61.8% retracement level at $ 0.59. Conversely, if the price bounces off $ 0.73, the bulls will make one more attempt to resume the uptrend.
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.
Keep reading:
- Bitcoin price metric calls for ‘strong backlash’ as $ 56,000 level begins to look ‘seriously cheap’
- Southeast Asian financial institutions turn to the Ethereum blockchain
- eToro will remove Cardano from its platform in 2022 for US users due to regulatory concerns
- Ripple presents a possible regulatory framework for the cryptocurrency industry in the United States
- Subsquid is developing decentralized indexing technology with new funding of $ 3.8 million
- Meme tokens and dog coins flood the market as price wars intensify
- One million ETH has been burned since the implementation of EIP-1559 in August