Bitcoin (BTC), and Ether (ETH), are currently testing psychologically significant support levels at $60,000, $4,000, respectively. These levels are crucial to maintain the uptrend in the short-term.
The fall might be a concern for leveraged traders but Bitcoin whales appear to see this as an opportunity to buy. According to on-chain data, the third largest Bitcoin whale added 207 Bitcoins to his holdings at an average price $62,053 per Bitcoin.
According to Colin Wu, the whale’s bitcoin holdings have increased by 635 Bitcoin since the last purchase.
Everyday cryptocurrency market performance. Source: Coin360
It isn’t all good news for Bitcoin and other cryptocurrencies. On expectations that rising inflation will force the U.S. Federal Reserve (USF) to raise rates and accelerate its $120 billion per month asset purchase program, the U.S. Dollar has reached a 16-month high.
Joel Kruger, currency strategist at LMAX Group, said that a stronger dollar could hit risky assets hardest. This could explain the recent pullbacks in Bitcoin and other altcoins.
Will the bulls defend the high support levels and make a comeback or will they sell off to lower crypto prices? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
Bitcoin fell below the 20-day exponentially moving average ($62 607) and the support line for the rising wedge pattern (Nov. 16). This is the first sign bulls might be losing their grip.
Daily chart of BTC/USDT Source: TradingView
Although the buyers are trying to defend the 50-day simple move average ($59,122), the shallow bounce suggests that bulls don’t have the urgency to buy at current levels.
The bears will attempt to bring the BTC/USDT price below $57,820 if the price falls from its current level or the 20 day EMA. If they succeed, selling could gain momentum and the pair could plummet to $52,500.
Contrary to the assumption, if the price rises from its current level and exceeds the 20-day EMA it will signify strong accumulation at lower levels. The overhead zone could be retested at $67,000-69,000.
Ether fell below the ascending channel Nov. 15, and was then followed by more selling Nov. 16, which brought the price below its 20-day EMA ($4,439). This was the first close below 20-day EMA since October 1.
Daily chart of ETH/USDT Source: TradingView
Today’s candlestick shows a long tail suggesting that bulls are trying to defend the 50 day SMA ($4,033). The 20-day EMA is starting to decline and the relative strength indicator (RSI) has fallen in the negative zone. This suggests that bears may be making a comeback.
It will indicate that sentiment is turning negative and traders are selling rallies if the price falls below the 20-day EMA or current level. The ETH/USDT currency pair could then break the 50-day SMA, and plunge to $3,600 as the next support.
If the pair moves above the 20-day EMA, this bearish view will be retracted.
Binance Coin (BNB), which was at overhead resistance at $669.30 Nov. 15, fell below the 20-day EMA ($591) Nov. 16, and then sank to $669.30 again. Today’s selling was continued and the bears pulled price below the 50 percent Fibonacci retracement at $552.30.
Daily chart BNB/USDT TradingView
Today’s candlestick has a long tail that suggests strong buying at lower levels. The buyers will attempt to bring the price above the 20-day EMA. If they succeed, the BNB/USDT pairing will attempt to climb to $669.30.
Alternativly, a decline in the price from the 20-day EMA could indicate that sentiment has turned negative and that traders are buying rallies. This could lead to the pair’s decline reaching the 50-day SMA ($509).
Solana (SOL), fell below the ascending channel on Nov. 16 and the 20-day EMA ($224), indicating that bulls might be losing their grip. The buyers are trying to defend the $216 breakout level, but any bounce will likely face selling at higher levels.
Daily chart of SOL/USDT Source: TradingView
The 20-day EMA is flattening out, and the RSI is at the midpoint. This indicates a balance between supply/demand. If the price falls below $216, this equilibrium will shift in the favor of bears.
The SOL/USDT could move to the downtrend line if the price bounces off its current level. Although this level could be a strong resistance, bulls may overcome it and the pair may reach the all-time high of $259.90.
Cardano (ADA), which fell sharply on Nov. 16, broke below $1.87 as support, but it is a minor plus that bulls didn’t allow the price below it. The candlestick’s long tail indicates that buyers are trying to defend the support.
Daily chart ADA/USDT Source: TradingView
Today, the bulls want to bring the price up above $1.87. However, higher levels could attract sellers. The RSI is in the negative zone and both moving averages have begun to fall, indicating that the bears are in control.
The bears will attempt to bring the ADA/USDT price below $1.75 if the price falls from the current level and the 20-day EMA. The pair could fall to $1.50 if they succeed. A break above the downtrend line will be the first sign of strength.
The Nov. 15 candlestick of XRP shows that bears bought on rallies to $1.24 overhead resistance. On Nov. 16, the selling picked up and the price fell below the moving averages.
Daily chart of XRP/USDT Source: TradingView
The strong support at $1 could be challenged if bears keep the price below moving averages. The 20-day EMA ($1.15) is starting to decline and the RSI has dipped below the negative territory, indicating that bears hold a slight advantage.
The price could reach $0.85 if it breaks below $1. This level could act as support again, but it may crack and the next stop could become $0.70.
If the price rises above the moving averages, it could reach $1.24. To signal a return, bulls will need to push the price higher than this level.
Polkadot (DOT)’s failure to rise above the 20-day EMA ($45.99) may have prompted profit booking by short-term bulls, and selling by aggressive bears. This accelerated the selling, and the price fell below the 50 day SMA (41.88 USD) on Nov. 16.
Daily chart of DOT/USDT Source: TradingView
The DOT/USDT currency pair is trying to rebound from the uptrend line. This indicates that bulls are continuing to buy dips. The pair could reach the 20-day EMA if bulls can maintain the price above 50 days SMA.
This level will likely act as a further barrier. If the price falls below the 20-day EMA the bears will attempt to push the pair lower than the uptrend line. This would extend the decline to $32 or later to $26.
To indicate that bears are losing their grip, the bulls must push the price higher than the 20-day EMA.
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Dogecoin (DOGE), after trading between the moving averages over the past few days made a decisive move lower in November 16. This is a sign that demand exceeds supply.
Daily chart of DOGE/USDT Source: TradingView
The bulls are trying to defend $0.22 as support. They are now trying to push the price higher than the downtrend line. If they are able to pull it off it will be a sign that the bears might be losing their grip. The DOGE/USDT exchange rate could rise to $0.30.
The 20-day EMA ($0.25) is starting to fall and the RSI has moved into the negative territory. This indicates that bears are in control. The likelihood of the price falling below $0.22 will increase if the price moves down from its current level or the downtrendline. The price may drop to $0.19, which is the critical support.
SHIBA INU(SHIB), which was trying to maintain SHIBA INU above the 20-day EMA ($0.000052) Nov. 14-15, failed. The candlestick’s long wick shows that the bulls were selling at higher levels.
Daily chart of SHIB/USDT TradingView
On Nov. 16, the selling continued, bringing the price below its 20-day EMA. One positive note is that bulls are trying to defend the critical support of $0.000043. The SHIB/USDT pair may attempt to climb to $0.000065 if buyers continue pushing the price higher than the 20-day EMA.
If the price falls below the current level or 20-day EMA it will be a sign that traders are selling at every slight rise. This will increase the chance of the price falling below $0.000043 or the 50-day SMA ($0.000040). The pair could experience a complete retracement, dropping to $0.000027.
Avalanche (AVAX), is currently in an uptrend. Although the bears attempted to stop the up-move by dropping the price below $81 on Nov. 16, the bulls refused to relent. The candlestick’s long tail shows that buyers defended the $20 EMA ($85.20), with vigor.
Daily chart of AVAX/USDT Source: TradingView
Today’s buying was resumed and bulls have lifted the price above $101.82. The AVAX/USDT pair may rise to $115.14 if buyers can keep the price above $100.
The bulls have control of the market thanks to the RSI and upsloping 20 day EMA in overbought territory. To signal a change in the short term trend, the bears will need to bring the price below $81.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.