With massive deleveraging in crypto derivatives markets, Bitcoin (BTC), and many altcoins selling off on December 4, there was a huge drop in bitcoin (USDT) and other altcoins. Over a 24-hour period, data suggests that there were more than $2.5 Billion in crypto liquidations.
Despite the recent drop in Bitcoin’s market dominance, Ether (ETH), has outperformed Bitcoin. Although Bitcoin’s market dominance is now below 41%, Ether (ETH) has gained ground and its market dominance is now above 21%.
Daily view of crypto market data. Source:Coin360
Analysts believe that Bitcoin’s recent fall could lead to a long phase of consolidation. Filbfilb, co-founder of Decentrader, expects Bitcoin’s consolidation to continue well into the first quarter next year. Moskovski Capital’s CIO Lex Moskovski expects a “slow grind up”
Could Bitcoin see a bottom in the coming days? Let’s look at the charts of top-5 cryptocurrencies which could help the market rise.
Bitcoin had strong support at the 100 day simple moving average ($54496) in September, making it an important support for bulls.
Daily chart of BTC/USDT Source: TradingView
But the bears had other ideas. The bears pulled the price below the 100 day SMA on December 3, possibly triggering several stop-loss orders. Panic selling resulted and the BTC/USDT exchange plunged to $42,000 Dec. 4. As seen in the candlestick’s long tail, the bulls bought this drop with vigor.
The bears are in control of the market, as evidenced by the downwardly moving 20-day exponential moving Average ($56219) and relative strength index (RSI), which is near the oversold area. The strong support at $40,000. If the pair falls further from its current levels, it could be the next stop.
However, if the price rises from its current level, it could reach the 100-day SMA. This may be a significant hurdle. If the price breaks and closes above this level, it will signal a stronger recovery.
BTC/USDT 4-hour chart. TradingView
The channel pattern of the pair is descending. The bears drove the price down to the channel support line, but the bulls bought this dip and brought the pair back into channel.
The pair could reach the 20-EMA if bulls can successfully defend the support level. The 20-EMA is expected to be a strong resistance. It will indicate that sentiment is still negative if the price falls below the 20-EMA. This could increase the chances of a break below this channel.
The pair could fall to the $42,000-$45,000 support zone if that happens. A break above the 20EMA is a sign that sellers are losing their grip. The channel could see the pair rise to the resistance level.
For the past few days, Ether (ETH has been range-bound between $3,900 and $4,868. The price fell below the Dec. 4 range, but the bears couldn’t sustain it. As you can see from the candlestick’s long tail, the bulls bought the dip aggressively.
Daily chart of ETH/USDT Source: TradingView
The ETH/USDT pair can rise to the $20-day EMA ($4,326) if bulls maintain the price above $3,000. Breaking and closing above this level could open the way for a rally to the record $4,868. To signal the resumption the uptrend, the bulls must overcome this obstacle.
Contrary to popular belief, bears will attempt to keep the pair below $3900 if the price falls from its current level. The pair could fall to $3,400 if they succeed.
ETH/USDT 4-hour chart. Source: TradingView
The rebound of the pair is being held back by stiff resistance at $4,215.12 Fibonacci level 61.8% Fibonacci Retracement. The bears have a slight advantage because the 20-EMA is sloping downward and the RSI has fallen to negative territory.
The pair could fall to $3,823.98 if the price breaks the $4,000 resistance. A close below the level of support could lead to a retest at $3,503.68.
If bulls push the price higher than the moving averages, it could reach $4,654.88, and challenge the all-time record.
For the past few days, Polygon (MATIC), has traded in an ascending channel pattern. On Dec. 3, the bulls drove the price higher than the resistance line, but it was not able to sustain these higher levels. This could have led to profit-booking Dec.
Daily chart MATIC/USDT Source: TradingView
Although the MATIC/USDT currency pair fell to the 100-day SMA ($1.54), buyers bought this dip. The candlestick’s long wick today indicates that bears may be selling close to the resistance line.
The 20-day EMA ($1.85) has been moving up, and the RSI is now in the positive zone. This signals a buyer’s advantage. If the current rebound continues, bulls will attempt to push the price higher than the resistance line.
A break and close below 50-day SMA ($1.76) might pull the price up to the 100 day SMA.
MATIC/USDT 4-hour chart. Source: TradingView
Selling at the $2.21 Fibonacci level of 78.6% Fibonacci Retracement is a possibility for the pair’s recovery. The pair could fall to the 50-SMA if bears lower the price below the 20EMA. Breaking below this support could lead to a fall to $1.54.
If the price bounces off the 20EMA, bulls will attempt to push the pair above $2.21. The pair could rally to $2.40 if they succeed. To propel the pair to its all-time high of $2.70, the bulls will need to overcome this hurdle.
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Algorand (ALGO), fell below $1.50 support on Dec. 4, but the bulls bought it aggressively, as shown by the long tail of the candlestick. The bulls are now going to push the price higher than the moving averages.
Daily chart for ALGO/USDT TradingView
The ALGO/USDT pair may rise above the resistance line if they do. The bears must defend this level as a break below it could cause the descending triangle pattern to be invalidated. The pair could rise to $2.36, and then to $2.55.
Contrary to popular belief, a price drop from the moving averages will mean that bears are selling rallies. The support level at $1.50 could be retested. The bearish setup will be completed by a break and close below the level. The pair could drop to $0.80.
ALGO/USDT 4-hour chart. Source: TradingView
For some time, the pair traded between $1.60 to $2. Although the bears managed to bring the price down below $1.60, they were unable to sustain it at lower levels. This indicates that aggressive buying is possible on dips. The bulls have brought the price back within the range.
The overhead resistance of $2 could be reached if buyers push the price higher than the moving averages. If the price falls below the moving averages, bears will attempt to keep the pair below $1.60. A retest of $1.32 will be possible if they succeed.
The sharp rally in Elrond, (EGLD), from $287 on November 17 to an all-time high of $544.25 Nov. 31, pushed the RSI into the overbought area. Vertical rallies are usually followed by waterfall falls, and this is exactly what happened over the past few days.
Daily chart of EGLD/USDT TradingView
The EGLD/USDT pairing fell to $224.62, completing a complete retracement.
The bulls bought the lows on December 4, as shown by the candlestick’s long tail. Currently, the buyers are trying to defend the uptrend and push the price higher than the 50-day SMA (324).
If they can do so, the pair could reach the 20-day EMA ($364) at which point bears might again mount a strong resistance. The pair could rally to $425 if bulls can overcome this obstacle.
However, if the price drops and closes below $100 SMA ($271) the pair could slide to $200.
EGLD/USDT 4-hour chart. Source: TradingView
The price fell below the uptrend line due to sharp selling, but the bears couldn’t sustain the lower levels. This is a sign of strong accumulation on dips. Although the pair quickly climbed above the uptrend line, the bulls were unable to clear the barrier at 20-EMA.
This means that traders are buying rallies and sentiment is still negative. The next stop for the price could be $224.62 if it holds below the uptrendline.
The opposite is true. If the price rises above the 20EMA and then breaks below it, it could indicate that bears are losing their grip. The price could start to recover and may even reach the 50 SMA. If the pair breaks and closes above this resistance, it could open the way for a rally towards the $425-$440 resistance zone.
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.