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Bitcoin and the majority of prominent altcoins have declined from their respective overhead resistance levels, signalling a shift in short-term sentiment.
Bitcoin (BTC) remains locked below $60,000, indicating that higher levels are attracting traders’ selling.
The S&P 500 reached a fresh all-time high on Nov. 22 on rumours that Federal Reserve Chair Jerome Powell had been renominated for a second term by US President Joe Biden. The US dollar currency index (DXY) rose to its highest level since July 2020 as a result of this news.
Sharp gains in the DXY are usually adversely connected with Bitcoin, and this was the case in November of this year.
Independent market analyst, TechDev, said Bitcoin’s performance in 2021 is following the price action of 2017 but with a lag of 5–8 days. If the correlation continues, the eagerly awaited blow-off top phase in Bitcoin is likely to occur.
Could the current fall be the final dip before the resumption of the uptrend or is the decline the start of a sharper correction? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin’s recovery from $55,600 on Nov. 19 reached the 50-day simple moving average (SMA) ($60,350) on Nov. 20 but the bulls could not clear this hurdle. This indicates that bears are attempting to flip the 50-day SMA into resistance.
The moving averages are nearing a bearish crossover, and the relative strength index (RSI) is in negative territory, indicating that the path of least resistance is to the downside.
If the price falls below $55,600, it will signal the beginning of a more serious downturn to the $52,500 to $50,000 support zone.
If the price rises above the current level and breaks above the downtrend line, this negative perspective will be invalidated. A move like this could signal the end of the correction.
The BTC/USDT pair might then begin its ascent to the overhead resistance zone of $67,000 to $69,000.
Ether’s (ETH) relief rally from the Nov. 18 intraday low at $3,956.44 rose above the 20-day exponential moving average (EMA) ($4,364) on Nov. 20 but the bulls could not sustain the higher levels. The bears pulled the price back below the 20-day EMA on Nov. 21.
On Nov. 22, the ETH/USDT pair fell to the 50-day SMA ($4,240), but the candlestick’s lengthy tail shows that bulls are defending this support. If buyers push the price above $4,451, the pair could climb to $4.519.78, the 61.80% Fibonacci retracement level, and then to $4,672.93, the 78.60 percent retracement level.
On the other hand, if the price falls below the current level, the bears will aim to push the pair below the 50-day SMA once more. If they are successful, the pair’s value might plummet to $3,956.44. A head and shoulders pattern will be completed with a break and close below this level. The pair could then decline to $3,400 and ultimately to $3,047, which is the pattern goal.
Binance Coin (BNB) rebounded off the 50-day SMA ($526) on Nov. 19 but the bulls could not extend the relief rally above the 61.8% Fibonacci retracement level at $602.40.
On Nov. 22, the bears dragged the stock below the 20-day EMA ($585). If the price stays below the 20-day EMA, bears will try to push the BNB/USDT pair below the 50-day SMA once more. If they are successful, the pair’s price might drop below $485.40.
If the price rises from its current level and breaks above $605.20, it indicates that bulls have re-entered the game. The pair might next rally to the $659.50 to $669.30 overhead resistance zone.
The bulls and bears do not have a distinct advantage due to the flattish 20-day EMA and the RSI at the midway.
Solana’s (SOL) bounce off the 50-day SMA ($198) hit a strong hurdle at the downtrend line on Nov. 21, indicating that bears continue to sell on rallies.
The price action of the past few days has formed a symmetrical triangle pattern suggesting a balance between supply and demand. This equilibrium will shift in favor of the bulls on a break and close above the resistance line of the triangle. The SOL/USDT pair could then retest the all-time high at $259.90.
Alternatively, if the price sustains below the 20-day EMA, the pair could drop to the support line of the triangle. The bears will have to sink the price below this support to gain the upper hand. The pair could then drop to $153.
Cardano (ADA) rose above the breakdown level at $1.87 on Nov. 20 but the bulls could not push the price above the 20-day EMA ($1.95). This suggests that sentiment remains negative and traders are selling on rallies to the 20-day EMA.
The price dipped back below $1.87 on Nov. 21 and the bears will now attempt to sink the ADA/USDT pair below $1.70. If they manage to do that, the selling could intensify and the pair could drop to $1.50.
Contrary to this assumption, if the price turns up from the current level and breaks above the 20-day EMA, the pair could rally to the downtrend line. A break and close above this resistance will indicate that the correction may be over.
Ripple (XRP) rebounded off the strong support at $1 on Nov. 19 but the recovery attempt faded at $1.10, indicating that demand dries up at higher levels.
The downsloping 20-day EMA ($1.12) and the RSI in the negative territory indicate that bears have the upper hand. If the price breaks below $1, the selling could pick up momentum and the XRP/USDT pair could drop to $0.85.
Conversely, if the price rebounds off the current level and rises above the moving averages, it will indicate that bulls are aggressively defending the support at $1. The pair could then start its northward march toward $1.24.
Polkadot (DOT) rebounded off the uptrend line on Nov. 18 but the relief rally is facing resistance at the 50-day SMA ($42.96). This indicates that bears are attempting to flip the 50-day SMA into resistance.
The moving averages are close to completing a bearish crossover and the RSI is in the negative zone, indicating that bears are in control. If the price breaks and closes below the uptrend line, the DOT/USDT pair could drop to $32 and then to $29.
Contrary to this assumption, if the price turns up from the current level and breaks above the moving averages, it will suggest that bulls continue to buy on dips. The pair could then rally to the overhead resistance zone at $47.83 to $49.78.
The long wick on Avalanche’s (AVAX) Nov. 21 candlestick shows that traders booked profits near the 200% Fibonacci extension level at $146.18. Lower levels attracted buying and the bulls attempted to resume the uptrend on Nov. 22.
To signal a restart of the uptrend, buyers must push the price over $147 and hold it there. The AVAX/USDT pair could then surge to $175.58, which is a 261.8 percent Fibonacci extension target.
While the upsloping 20-day EMA ($100) indicates that bulls are in control, the RSI over 81 suggests that the rally may be overheated in the near term.
Short-term traders may rush to the exit if the price falls below $147. This might lower the price to $123. If this support is broken, a larger fall to $110 and possibly to the 20-day EMA might begin.
Dogecoin’s (DOGE) rebound off the strong support at $0.21 on Nov. 19 fizzled out at $0.23. This weak relief rally indicates that demand dries up at higher levels.
The downsloping 20-day EMA ($0.24) and the RSI in the negative territory indicate that bears have the upper hand. If sellers pull the price below $0.21, the DOGE/USDT pair could drop to the critical support at $0.19.
Contrary to this assumption, if the price again rebounds off the current level, the pair could rise to the downtrend line. The bulls will have to push and sustain the pair above this resistance to signal that the correction may be over.
SHIBA INU (SHIB) turned down from the 20-day EMA ($0.000049) on Nov. 20, indicating that the sentiment has turned negative and traders are selling on rallies to the overhead resistance levels.
The bears are seeking to drive the stock below the 50-day SMA ($0.000043) and the 78.6% Fibonacci retracement level of $0.000040. The SHIB/USDT pair might fall to $0.000027, completing a 100 percent retracement, if they succeed.
Bears have the upper hand, as seen by the downsloping 20-day EMA and the RSI in the negative zone. If the price bounces off the current level, the bulls will attempt to take the pair above the 20-day EMA and begin an uptrend towards $0.000057, contrary to popular belief.