Bitcoin (BTC), and many other altcoins, have struggled to recover from the sharp drop seen Nov. 26. This suggests that traders might be nervous about buying at current levels because of uncertainty surrounding the newly-discovered coronavirus strain in South Africa.
A CryptoCompare report shows that Bitcoin’s assets under management fell 9.5% to $48.70 trillion in November. However, altcoin-based crypto fund AUM increased 5.4% to $16.60 Billion.
This could indicate that traders might have made profits from Bitcoin and then rotated some of the money into altcoins.
Daily view of crypto market data. Source:Coin360
Alex Mashinsky, Celsius’s founder and CEO, is not worried about the recent drop and views it as an opportunity to buy. On Nov. 28, Mashinsky stated that he had bought “almost $10m worth Bitcoin and Ether at current levels”. He anticipates Bitcoin rallying to $70,000. Mashinsky said that he would reduce his purchases by half if Bitcoin breaks support at $50,000.
If Bitcoin rises above its current level, investors may be attracted to altcoins. Let’s look at the charts of five top cryptocurrencies that could be in focus over the next few days.
For the past few days, Bitcoin has been moving in a downward channel. For the past two days, the bulls have been trying to defend the 100-day simple move average ($54,064) but the weak bounce suggests a lackluster urgency to accumulate at this level.
Daily chart of BTC/USDT Source: TradingView
The bears have control of the market, as evidenced by the downwardly moving 20-day exponential moving mean ($58,521) or relative strength index (RSI), which is below 39. The bulls could hit a wall at 20-day EMA if the price rebounds from the current level.
If the price falls below the 20-day EMA again, it will increase the chances of a break below 100-day SMA. The channel support line could be challenged by the pair. A dip below the channel can increase selling and bring the BTC/USDT pair down to $40,000.
To signal that the correction is over, the bulls must push the price higher than the channel. A break could see the pair gain bullish momentum and close above $61,000.
BTC/USDT 4-hour chart. TradingView
On the 4-hour chart, the RSI has shown a bullish divergence. This indicates that selling pressure may be decreasing. The pair could reach $60,000. If bulls push it above the 20-EMA or 50-SMA, it could go up to $60,000.
This resistance is crucial for bulls to overcome, as the two previous recoveries failed at this level.
The selling process could accelerate if the price falls below the overhead resistance or current level and drops below $53,500. The pair could drop to the support level at $50,000.
Binance Coin (BNB), is witness to a tussle among the bulls and bears close to the 20-day EMA ($590). The price fell to close below the 20-day EMA Nov. 26 but the bears couldn’t capitalize on this advantage.
Daily chart BNB/USDT TradingView
Today’s price drop was again by the bears. However, the candlestick’s long tail shows accumulation at lower levels. The balance between supply/demand is evident in the RSI and flat 20-day EMA.
Bulls pushing the price higher than $621.30 could cause the BNB/USDT pairing to rally again to the overhead resistance zone of $669.30 to $691.80.
If the price falls and closes below 20-day EMA, then the pair could fall to the 50 day SMA ($546). If the price breaks and closes below this support, the pullback could be extended to the 100-day SMA ($487) then to $440.
BNB/USDT 4-hour chart. Source: TradingView
Although the price recovered from the uptrend line on the 4-hour charts, the bears attempted to stop the recovery at the 20-EMA. If the price falls further, bears will attempt to sink the pair below 20-EMA.
If they are able to pull it off, the pair may drop to the support zone of $564.20-553.80. A drop below this zone could lead to a steeper fall to $510.
If bulls continue to push the price higher than the 20-day EMA, then the pair could reach $621.30 and gain momentum.
Terra’s LUNA token trades within an ascending channel pattern. Between Nov. 24-26, the bulls successfully defended the channel’s support line and have pushed today’s price higher than the 20-day EMA (44.33).
Daily chart of LUNA/USDT Source: TradingView
The LUNA/USDT pair may rise to $52 if bulls can keep the price above the 20 day EMA. This would then allow it to retest its all-time high of $54.95. Strong selling could be seen near the channel’s resistance line.
Contrary to the assumption, if the price does not sustain above the 20 day EMA it will be an indication that traders are selling rallies.
The bears will attempt to lower the price below this channel. It will be a sign of a possible trend change if they succeed. This could lead to the pair dropping to $32 or later to $24.
LUNA/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows bulls pushing the price higher than the overhead resistance of $45.54, but they are having trouble keeping the pair above that level. This suggests that bulls are trying to trap aggressive bulls by pulling the price below the breakout level.
The 20-EMA has risen and the RSI is positive, indicating that bulls have a slight edge. It will indicate accumulation on dips if the price rises above the current level, or rebounds off $45.54.
A break or close below the moving averages could flip the short-term favor in the direction of bears. This could lead to a drop in the pair to $38.
Related: Crypto traders have a holy grail: Consistent returns of over 5%
Decentraland (MANA), which was $5.90 on Nov. 25, declined to $5.90 on Nov. 25, but the long tail of candlesticks over the past two days indicates that bulls are trying to defend the zone between the 38.2% Fibonacci level at $4.48, and the 50% level at $4.05.
Daily chart MANA/USDT Source: TradingView
Bulls will attempt to push the price higher than the $5.90 record and resume the uptrend. The MANA/USDT pairing could begin its journey towards $7.87 if they succeed.
Bulls are favored by rising moving averages and a positive RSI.
If the price falls below the 20-day EMA ($3.88), this bullish view will be invalidated in the short term. This will signal that demand is outstripping supply. This could lead to the pair dropping to $3.10.
MANA/USDT 4-hour chart. Source: TradingView
Although the pair has bounced off of the 50-SMA, the bears are aggressively protecting the $5 overhead resistance. The bears are now trying to lower the price and keep it below the 50 SMA. If they succeed, it will signal a deeper correction up to $3.90 and then to $3.50.
The bulls will try to push the price higher than $5 if it rises above the 50-SMA or current level. This could encourage buying, and the pair might rally to $5.50 or $5.90.
The Sandbox (SAND), has been correcting the strong upward movement of the last few days. Bulls are trying to stop the pullback between the 38.2% Fibonacci level at $6.02 and the 50.0% retracement at $5.26.
Daily chart of SAND/USDT Source: TradingView
If the price moves higher than the current level, this will show that sentiment is positive and traders are buying at every small dip. The bulls will attempt to push the price higher than the $8.48 overhead resistance.
The SAND/USDT pair may resume its upward movement if they succeed with the next objective at $10.52. If the price falls below the 20-day EMA ($4.84), this bullish view could be invalidated in the short term.
SAND/USDT 4-hour chart. TradingView
On the 4-hour chart, the pair bounced off of the 50-SMA and bulls have driven the price higher than the falling wedge pattern. The pair could reach $7.50 if bulls can keep the price above 20-EMA. This would challenge the all-time highest.
Contrary to popular belief, a fall in the price below the overhead resistance or current level and below the 50 SMA will indicate that traders are making profits from relief rallies. This could lead to a further fall to $4.50.
You should research all aspects of trading and investment before making any decision.
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.