Bitcoin (BTC) is still below $ 60,000, suggesting higher levels are attracting sales from traders.
The S&P 500 index hit a new all-time high in November report that US President Joe Biden has renominated Mr. Jerome Powell as Chairman of the US Federal Reserve (FED). The news also brought the US dollar index (DXY) to its highest level since July 2020.
Usually a sharp surge in DXY is negatively correlated to Bitcoin, and the same thing can be seen this November. While DXY was up about 2.3% in November, Bitcoin was down about 5.5% over the same period.
Analyst TechDev says Bitcoin’s price movement in 2021 will closely follow its 2017 price movement, but with a 5-8 day lag. If the correlation persists, BTC will soon explode again.
Could the current drop be the last drop before the uptrend resumes or is it the start of a bigger correction? Let’s check out the top 10 cryptocurrency charts to find out.
Bitcoin’s rebound from $ 55,600 on November 19 hit the 50-day SMA ($ 60,350) on November 20, but the bulls were unable to break that barrier. This shows that the bears are trying to turn the 50-day SMA into resistance.
BTC / USDT daily chart | Source: TradingView
The moving averages are about to form a bearish cross and the relative strength index (RSI) is in negative territory, suggesting that the path of least resistance is on the downside.
If the price turns down and falls below $ 55,600, it signals the beginning of a deeper correction with the next target being the support area between $ 52,500 and $ 50,000.
This negative view will be invalidated if the price rises from current levels and breaks above the downtrend line. Such a move would mean that the correction might be over.
After that, the BTC / USDT pair could begin its march north with the target as the resistance area at $ 67,000 to $ 69,000.
Ether (ETH) ‘s relief rally from the November 18 low of $ 3,956.44 helped push the price above the 20-day EMA ($ 4,364) on November 20, but the bulls failed to move higher keep. November the bears pulled the price back below the 20-day EMA.
ETH / USDT daily chart | Source: TradingView
The ETH / USDT pair fell to the 50-day SMA ($ 4,240) on November 22nd, but the candle’s long tail shows that the bulls are defending that support. If buyers push the price above $ 4,451, the pair can rebound to the 61.80% fib retracement level at $ 4,519.78 and then to the 78.60% fib retracement level at $ 4,672.93.
Conversely, the bears will attempt to move the pair below the 50-day SMA again if the price drops from current levels. If successful, the pair can drop to $ 3,956.44. A break and close below this level completes a head and shoulders pattern. The pair may then drop to $ 3,400 and eventually hit the target of the pattern at $ 3,047.
Binance Coin (BNB) rebounded from the 50-day SMA ($ 526) on November 19, but the bulls failed to extend the recovery rally above the 61.8% fib retracement level at $ 602.40.
BNB / USDT daily chart | Source: TradingView
The bears pulled the price below the 20-day EMA ($ 585) on November 22nd. If successful, the pair can drop to $ 485.40.
Conversely, if the price rises from current levels and breaks above $ 605.20 it will show that the bulls are back in the game. The pair can then rise to the $ 659.50 to $ 669.30 resistance range.
The 20-day EMA is flat and the RSI is near the middle, giving neither the bulls nor the bears a clear advantage.
Solana (SOL) rebounded from the 50-day SMA ($ 198) but hit a strong hurdle on the downtrendline on Nov. 21, suggesting the bears will continue to sell during the rebound.
Daily SOL / USDT chart | Source: TradingView
The price movement of the past few days has formed a symmetrical triangle pattern showing a balance between supply and demand. This equilibrium will shift in favor of the bulls when price breaks through and closes above the triangle’s resistance line. After that, the SOL / USDT pair could retest the all-time high of $ 259.90.
Alternatively, if the price stays below the 20-day EMA, the pair may fall to the support line of the triangle. The bears will have to drop the price below this support to get the upper hand. After that, the pair can drop to $ 153.
Cardano (ADA) hit the $ 1.87 dip on November 20, but the bulls were unable to push the price above the 20-day EMA ($ 1.95). This shows that sentiment is still negative and traders are selling as price rebounds towards the 20-day EMA.
Daily ADA / USDT Chart | Source: TradingView
The price fell back below $ 1.87 on November 21, and now the bears will seek to push the ADA / USDT pair below $ 1.70. If they do that, sales could intensify and the pair could drop to $ 1.50.
Contrary to this assumption, if the price rises from current levels and breaks above the 20-day EMA, the pair can rebound to the downtrendline. A break and close above this resistance would indicate that the correction may be over.
Ripple (XRP) rallied from strong support at $ 1 on November 19, but the recovery attempt faded at $ 1.10, showing that demand is drying up at higher levels.
XRP / USDT daily chart | Source: TradingView
The downward sloping 20-day EMA ($ 1.12) and the negative RSI show that the bears have the upper hand. If the price drops below $ 1, selling can gain momentum and the XRP / USDT pair can drop to $ 0.85.
Conversely, if the price rebounds from current levels and rises above the moving averages, it shows that the bulls are actively defending the USD 1 support.
Polkadot (DOT) bounced off the uptrendline on Nov 18, but the relief rally is facing resistance at the 50-day SMA ($ 42.96). This shows that the bears are trying to turn the 50-day SMA into resistance.
DOT / USDT daily chart | Source: TradingView
The nearby moving averages are creating a bearish cross and the RSI is in negative territory, showing that the bears are in control. If the price breaks below the uptrend line and closes, the DOT / USDT pair can drop to $ 32 and then to $ 29.
Contrary to this assumption, this suggests that the bulls will continue to buy on the downside as the price rises from current levels and breaks above the moving averages. The pair can then rise to the $ 47.83 to $ 49.78 resistance range.
The long wick of the Avalanche Candle (AVAX) on Nov. 21 shows that traders took profits near the 200% Fib expansion at $ 146.18. The lower levels attracted buying and the bulls attempted to resume the uptrend on November 22nd.
AVAX / USDT daily chart | Source: TradingView
Buyers need to push and hold the price above $ 147 to signal the continuation of the uptrend. Thereafter, the AVAX / USDT pair can rebound to the 261.8% Fib expansion at $ 175.58.
While the 20-day EMA ($ 100) shows the bulls have the upper hand, the fact that the RSI is above 81 suggests that the rally may overheat in the short term.
If the price drops from $ 147, the short-term traders could break out. This could drop the price to $ 123; a break below this support could signal the start of a deeper correction with a target of $ 110 and then the 20-day EMA.
Dogecoin (DOGE) rebounded from strong support at $ 0.21 on November 19 to hit $ 0.23. This weak rally shows that demand is drying up at higher levels.
Daily DOGE / USDT Chart | Source: TradingView
The downward sloping 20-day EMA ($ 0.24) and the negative RSI show that the bears have the upper hand. If sellers pull the price below $ 0.21, the DOGE / USDT pair may dip to the critical support at $ 0.19.
Contrary to this assumption, if the price rebounds from current levels, the pair may rebound to the downtrend line. The bulls need to push and hold the pair above this resistance to signal the correction may be over.
SHIBA INU (SHIB) moved down from the 20-day EMA (0.00049) on Nov 20, showing sentiment has turned negative and traders are selling on relief rallies.
Daily SHIB / USDT Chart | Source: TradingView
The bears are trying to bring the price below the 50-day SMA ($ 0.00043) and the 78.6% fib retracement level at $ 0.000040. If they do that, the SHIB / USDT pair may plunge to $ 0.000027, completing the 100% fib retracement level.
The falling 20-day EMA and the negative RSI show that the bears have the upper hand. Contrary to this assumption, as price rebounds from current levels, the bulls will seek to push the pair above the 20-day EMA and rally towards $ 0.0000057.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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According to Cointelegraph
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