Bitcoin (BTC) and Ether (ETH) have turned their backs on overhead resistance, suggesting bears will continue to sell during the rebound.
New Australian research shows that Ethereum Improvement Proposal (EIP) 1559 made ether a better store of value than Bitcoin. The report says the annual growth rate in ether supply has been 0.98% since EIP-1559, lower than Bitcoin’s 1.99% increase.
Demand for Ether has risen following the growing popularity of NFT tokens, DeFi, and Metaverse-related altcoins. Some analysts are still optimistic about Ether and suspect it will rise in the $ 6,000-10,000 range.
On-chain analytics firm Glassnode says high open interest (OI) and sales by long-term owners could prolong Bitcoin’s decline. “The open interest in options and futures is close to an all-time high,” which could lead to a market shakeout.
Can the Bitcoin Correction Drag the Entire Crypto Market Down? Let’s check out the top 10 cryptocurrency charts to find out.
The bulls were unable to keep bitcoin price above the 20-day EMA ($ 57,905) on November 30th and December 1st. This shows that the bears are aggressively defending the 20-day EMA.
BTC / USDT daily chart | Source: TradingView
Now the bears will try to move lower and keep the price below the 100-day SMA ($ 54.485) and the November 28 low at $ 53,256.64. If this succeeds, the BTC / USDT pair may fall to $ 50,000 in psychological support.
This is a major support to watch as if it is broken, sales could pick up pace and the pair could drop to $ 40,000. The downward sloping 20-day EMA and Relative Strength Index (RSI) are in negative territory, suggesting that the path of least resistance is on the downside.
If, contrary to this assumption, the price bounces off the 100-day SMA and rises above the 20-day EMA, this indicates a consolidation at a lower level. The pair can then rebound to the 50-day SMA ($ 60,750).
Ether fell from $ 4,778.75 on December 1st, showing that the bears are actively defending the resistance area at the all-time high of $ 4,868. The price returned to the 50-day SMA ($ 4,319) on December 3.
ETH / USDT daily chart | Source: TradingView
If the price rebounds from current levels, it shows that sentiment is still positive and traders are buying on the downside. The bulls will then take one more step to push the price above $ 4,868.
If this succeeds, the ETH / USDT pair can continue its uptrend, with the next target at USD 5,796. Conversely, if the price falls below the 50-day SMA, it suggests that traders may be in a hurry to get out. After that, the pair may drop to the strong support at USD 3,900.
The bulls unsuccessfully attempted to push Binance Coin (BNB) above the resistance of $ 669.30 on December 1st. This shows that the bears continue to be a major challenge at higher levels.
Daily BNB / USDT chart | Source: TradingView
The 20-day EMA ($ 602) has flattened and the RSI is near the middle, indicating the possibility of near-term range action.
If the price drops below the 20-day EMA, the BNB / USDT pair can drop to the 50-day SMA ($ 564). This is an important level for the bulls to defend as a break below it can pull the price towards the 100-day SMA ($ 494).
Conversely, if the price rises from current levels or the 50-day SMA, the bulls will seek to push the pair above the $ 669.30 to $ 691.80 resistance area.
Solana (SOL) broke out and closed above the symmetrical triangle resistance line on December 1st, but the bulls were unable to sustain the higher levels. The bears pulled course back into the triangle on December 3rd.
Daily SOL / USDT chart | Source: TradingView
If the price rebounds from the 20-day EMA ($ 215) the bulls will make another move to initiate the upward move by pushing the SOL / USDT pair above the resistance level of $ 243.12.
Contrary to this assumption, if price falls below the 50-day SMA (USD 210) it suggests that the recent break above the resistance line may be a bull trap. The bears will then attempt to bring the price below the triangle’s support line.
A break and close below the 100-day SMA ($ 178) could trigger a deeper correction with a target of $ 140.
Cardano (ADA) rallied strongly on December 2nd but hit a wall at the 20-day EMA ($ 1.72). The bulls’ failure to break the overhead barrier may have resulted in strong selling by the bears.
Daily ADA / USDT chart | Source: TradingView
Now the bears will try to push the price into the strong support area at $ 1.50-1.41. This is important support for the bulls to defend because if broken, sales could intensify and the ADA / USDT pair could start its way down to USD 1.
Contrary to this assumption, an increase in price out of the support area indicates a buy at lower levels. The bulls will then take another step to push the price above the 20-day EMA. If so, the pair can rebound to the 50-day SMA ($ 1.94).
Ripple’s (XRP) inability to break and hold the $ 1 psychological level shows that bears are selling heavily on small rallies. The price has fallen and now the bears will attempt to pull the price towards the strong support at $ 0.85.
XRP / USDT daily chart | Source: TradingView
The downward sloping 20-day EMA ($ 1.02) and the RSI below 37 suggest sellers are in control. If the bears turn down and hold the price below $ 0.85, the XRP / USDT pair may fall to the nearest support at $ 0.70.
On the flip side, this suggests that selling pressures could ease if price moves from current levels or support at $ 0.85 and breaks above the 20-day EMA. After that, the pair can rally to the 50-day SMA ($ 1.09).
Polkadot (DOT) broke the dominant head and shoulders pattern and returned on November 30th to confirm it as resistance. The price has now broken below the 100-day SMA ($ 37) and now the bears will try to get the price down on the. pushing strong support at $ 32.21.
DOT / USDT daily chart | Source: TradingView
If this level is broken, selling may intensify and the DOT / USDT pair may fall to the nearest support at $ 26. The 20-day EMA is sloping down ($ 39) and the RSI is in negative territory. The poles show that the bears have the upper hand.
Conversely, if the price rises from current levels and breaks above the 20-day EMA, it indicates that the market has rejected the lower levels. That could catch some aggressive bears and result in a short squeeze. Thereafter, the pair can rebound to the 50-day SMA ($ 43) and above to $ 47.50.
The bulls have been unable to push Dogecoin (DOGE) above the 20-day EMA ($ 0.22) for the past few days, showing sentiment remains negative and the bears are selling with the rebound.
Daily DOGE / USDT chart | Source: TradingView
The 20-day EMA is sloping down and the RSI is below 36, suggesting that the path of least resistance is on the downside. If the bears pull the price below $ 0.19, the DOGE / USDT pair may dip to the critical support at $ 0.15.
On the other hand, if the price rises from current levels or bounces back from $ 0.19 and breaks above the 20-day EMA, it indicates heavy accumulation at lower levels. After that, the pair can bounce back to the 50-day SMA ($ 0.24).
Terra (LUNA) broke the moving averages and gained momentum on November 28th. Strong buying by the bulls drove the price to a new all-time high on November 30th, indicating that the uptrend will continue.
Daily LUNA / USDT chart | Source: TradingView
That the bears failed to stop the rally at the resistance level shows that the bulls are buying hard. If the price holds above the channel, the LUNA / USDT pair could rise to $ 85.07.
Conversely, if the price goes down and returns to the channel, it shows that traders are booking profits at higher levels. After that, the pair can drop to the 20-day EMA ($ 51).
If price rebounds from these levels, it shows that sentiment remains positive while a break below the 20-day EMA can pull price to the support line of the channel.
Avalanche (AVAX) moved down from the 61.8% fib retracement level at $ 129.26 on December 1st. This could have resulted in profit taking from traders who pulled the price below the 20th EMA day ($ 109) on December 2nd.
AVAX / USDT daily chart | Source: TradingView
The flat 20-day EMA and the RSI near the middle point to a balance between supply and demand.
If the bulls push and hold price above the 20-day EMA again, the AVAX / USDT pair may rise to $ 129.26. A break and close above this level could open the door for a retest of the all-time high of $ 147.
Also, if the price cannot hold above the 20-day EMA, it shows that traders are selling on small rallies. The bears will then attempt to bring the price below psychological support at $ 100, and if that happens the pair may drop to the 50-day SMA ($ 87).
You can see the price of the coin Here.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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.
Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page
London, United Kingdom, 21st November 2024, Chainwire
The move will see developers utilize USDC on Aptos in creating dApps on a wide…
Abu Dhabi, UAE, 21st November 2024, Chainwire
Senator Cynthia Lummis outlined the Strategic Bitcoin Reserve, which will sell part of the Fed's…
As the cryptocurrency market expands and matures, a select few projects stand out for their…
SEC evaluates Solana Spot ETF applications from VanEck, 21Shares, and Canary Funds, with Bitwise preparing…
This website uses cookies.