Bitcoin (BTC), which was unable to sustain its gains, succumbed profit-booking at the beginning of the U.S. trading week. This could indicate that bears are not giving up.
PlanB, the creator of the BTC stock-toflow model, doesn’t seem to be affected by the lackluster price action over the past few days. According to the analyst, his worst-case scenario projections of $98,000 by December 1 and $135,000 January 1 remain in place.
According to William Clemente, an analyst who cited Glassnode data, long-term investors don’t seem to be waiting to reach higher levels. Instead, they have begun to book profits. Clemente stated that “bull market distribution” has started.
Everyday cryptocurrency market performance. Source: Coin360
Bitcoin is not for everyone. Investor’s Podcast Network was told by Kyle Bass, a billionaire fund manager, that it will be difficult to make money with Bitcoin at current levels due to the strict regulation of the United States government.
Will lower levels be able to attract bulls buying or will traders still make profits? Let’s look at the charts for the top 10 cryptocurrency coins to see what happens.
Bitcoin rebounded from the 20-day exponential moving Average (EMA) ($632,232) Nov. 12, but bears pose a formidable challenge to the overhead resistance zone of $67,000 to $69,000.
Daily chart of BTC/USDT Source: TradingView
A negative divergence has been observed in the relative strength index (RSI), which indicates that bullish momentum might be weakening. BTC/USDT has formed a bearish rising triangle pattern. This pattern will end on a break below the support line.
If this happens, traders may be booking large profits and it could lead to a fall to the SMA (simple moving average) of $58,396. The rising wedge pattern pattern targets $53,770.
This assumption is incorrect. If the price rises above $67,000, then the next stop could be $69,000. The possibility of a rally to $75,000. could be opened by a break above the resistance line.
Although Ether (ETH), fell below the support line for the ascending channel on February 14, the candlestick’s long tail suggests that strong buying is possible at lower levels. The bulls tried to reestablish the uptrend today, but the candlestick’s long wick indicates that sellers are selling at $4,800.
Daily chart of ETH/USDT Source: TradingView
The bears will attempt to sink the price below the support level of the channel and the 20 day EMA ($4,491) once more. If they succeed, it could signal a shift in the short-term trend. The 50-day SMA ($3,980) could see the ETH/USDT currency pair drop.
However, bulls will defend this level aggressively if the price bounces off the support line. The buyers will attempt to get over the barrier at $4,868 to push the pair towards the psychological mark of $5,000. Bulls pushing the price higher than the channel could increase the bullish momentum.
Binance Coin (BNB), is trying to surpass the Nov. 7 high of $669.30, but the bears will not relent. They are aggressively defending the overhead resistance.
Daily chart BNB/USDT TradingView
On Nov. 14, the BNB/USDT pair formed the Doji candlestick pattern, signaling uncertainty among the bulls as well as the bears. The pair could slide to $593 EMA (20-day) if this uncertainty ends to the downside.
To deepen the correction towards the 61.8% Fibonacci level at $524.70, the bears must pull the price down below $573.
However, if the price rises above the current level or 20-day EMA it will signal that sentiment is positive and traders are buying dips. A break above $669.30 may lead to a retest at $691.80, the all-time high. If buyers push the pair higher, bullish momentum may pick up.
Solana (SOL), which rebounded from the support line in the ascending channel on Nov. 13 indicated that bulls continue buying dips. Bulls will attempt to push the price higher than the overhead resistance of $248 and challenge its all-time high of $259.90.
Daily chart of SOL/USDT Source: TradingView
The upwardly moving averages are indicating that there is little resistance to the upside. The SOL/USDT pair could rise to the resistance line in the ascending channel if bulls push the price higher than the all-time high.
If the price falls below the support line or if it is lower than the current level, this positive outlook will be invalidated. This could open the way for a decline to the 50 day SMA ($189).
Cardano (ADA), which has traded below the 20-day EMA ($2.06) over the past three trading days, but the bears haven’t been able to capitalize and pull the price back to $1.87.
Daily chart ADA/USDT Source: TradingView
The flattish 20 day EMA and the RSI just above the midpoint indicate a range-bound action in near term.
Bulls pushing the price higher than the downtrend line will indicate that bears are losing their grip. The ADA/USDT pairing could then reach the overhead resistance at $2.47, where bears might again mount a strong resistance.
The pair could also drop to $1.87 if it falls below the current level. To signal a downtrend, the bears will need to lower the price below the support.
Ripple (XRP), which has been trading above the 20-day EMA ($1.17) over the past few days, but bulls are having trouble pushing the price above the overhead resistance of $1.24. The candlestick’s Nov. 15 candlestick shows a long wick that suggests bears are selling at higher levels.
Daily chart of XRP/USDT Source: TradingView
Short-term traders may profit-book if the price does not rise above $1.24. This could push the price below the 50-day SMA ($1.10). If this support cracks again, bears could see an opportunity to lower the XRP/USDT pairs below $1.
Contrarily, if the price recovers from the current level and breaks above $1.24 it will signal that buyers have outperformed the bears. This could open the way for a rally to $1.41. To gain the upper hand, the bulls must overcome this obstacle.
Polkadot’s (DOT) price broke below the 20 day EMA ($47.15 on Nov. 10, but the bears couldn’t capitalize on this advantage to sink the price to its 50-day SMA ($41.33). This indicates that traders are buying at lower levels.
Daily chart of DOT/USDT Source: TradingView
For the past few days, the DOT/USDT pair has held onto the 20-day EMA, increasing the chances of a break above that. The pair could reach $49.78, and then challenge the record $55.09.
If the price falls below $44.04 and the pair continues to slide, it could fall to the 50-day SMA. To gain the upper hand, the bears will need to lower the price below $40.
Related: Litecoin faces ‘double top” risks following LTC price rises 37% in November
Dogecoin (DOGE), has traded between the moving averages over the past few days. Although the bulls pushed the price higher than the 20-day EMA ($0.26) Nov. 14, the candlestick’s long wick suggests that the bears are actively defending the downtrend.
Daily chart of DOGE/USDT Source: TradingView
The 20-day EMA is flattened and the RSI is close to the center. This suggests a state of equilibrium between bulls and bears.
The first sign that selling pressure is decreasing is a breakout or close above the downtrendline. The DOGE/USDT currency pair could rise to $0.30, and then to $0.34 overhead resistance.
The opposite is true. If bears lower the price below 50-day SMA, the selling could increase. The pair could drop to $0.22, with the support at $0.19.
SHIBA INU has oscillated above and below the 20 day EMA ($0.000053) over the last few days, indicating a lackluster direction.
Daily chart of SHIB/USDT TradingView
The RSI close to the midpoint and the flat 20-day EMA suggest a balance between supply/demand. The SHIB/USDT pair may attempt to rally above $0.000057 if buyers push it higher.
A break below $0.000048 could lead to a decline to $0.000043, which is a strong support level. A break above $0.000043 or higher could be the next trending move.
Terra’s LUNA token recovered from the 20-day EMA ($48.23 on Nov. 13), indicating that bulls continue buying on dips towards this support. Buyers have the advantage because of the rising moving averages, and the RSI within the positive zone.
Daily chart of LUNA/USDT Source: TradingView
On Nov. 14, the LUNA/USDT pair created an inside-day candlestick structure, suggesting indecision between the bulls as well as the bears.
Bulls could drive the price to $53.43, which would allow the pair to retest its all-time high of $54.95 before rallying to the resistance line. If buyers push the price above this resistance line, the bullish momentum may pick up.
If the price falls below the wedge support line, this bullish view will be invalidated. This could push the price below the 50-day SMA (43.26).
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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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.