Bitcoin (BTC), which fell below $56,000 on November 19, marked a 20% correction from its all-time high. With a reading 34, the Crypto Fear & Greed Index has fallen into the fear category. It was in the greed zone for the majority of the past two-months.
Delphi Digital, a cryptocurrency research company, stated in a recent report that Bitcoin’s sell-off was “largely driven” by liquidations and not a fundamental shift of narrative. Analysts expect the drawdown will be “relatively brief.”
Everyday cryptocurrency market performance. Source: Coin360
The recent correction seems not to have affected long-term holders. The Hodl Waves metric shows that the supply of investors who bought over the past 6-12 months has increased to 21.4%, compared to 8.7% at June’s start.
Lower levels could attract strong buying and a sharp recovery. Or will bears sell off rallies? Let’s look at the charts for the top 10 cryptocurrency coins to see what happens.
Bitcoin rebounded from the 50-day SMA ($59,718) on Nov. 17. However, the inability of the bulls push the price higher than the 20-day exponential move average (EMA ($61,696)) indicates that buying dries out at higher levels.
Daily chart of BTC/USDT Source: TradingView
BTC/USDT plunged to close below the 50-day SMA Nov. 18. The relative strength index (RSI), which is in negative territory, and the moving averages are pointing to a bearish crossover, indicate that bears hold the upper hand.
If the bulls are unable to push the price higher than the moving averages, selling could intensify and the pair may drop to the $52,500-to $50,000 support zone.
If bulls push the price higher than the moving averages, it could lead to a rise to the downtrend. Although this level can be a barrier, bulls could push the price higher than it to reach the overhead zone of $67,000 to $69,000.
The price of Ether (ETH), rebounded from the 50-day SMA ($4,082) Nov. 17, but the bulls couldn’t clear the overhead hurdle at 20-day EMA ($4,387). This accelerated selling, and the price fell below the 50-day SMA Nov. 18.
Daily chart of ETH/USDT Source: TradingView
The selling pressure was too much for the bears at lower levels. This may have led to strong buying by the aggressive bulls. The price rose above the 50-day SMA, Nov. 19, and the ETH/USDT currency pair could reach the 20 day EMA. Bears may be a challenge again.
The bears will pull the pair below $3956.44 if the price falls from the 20-day EMA. This could open the door to a decline to $3,371. A break or close above the 20 day EMA could signal that the corrective phase is over. The pair may then test the all-time high.
Binance Coin (BNB), plunged to the 50 day SMA ($517) Nov. 18, but the strong rebound Nov. 19 suggests aggressive buying at lower levels. Bulls will attempt to push the price higher than the 20-day EMA (585)
Daily chart BNB/USDT TradingView
The BNB/USDT pairing that sustains above 20-day EMA will signal that the short-term correction is over. The pair could then move to the overhead resistance zone of $669.30-691.80, where bears might pose a challenge.
A break above the overhead resistance and close below it could indicate the resumption or continuation of the uptrend. However, if the price drops below the 20-day EMA, then the probability of a break below 50-day SMA increases. The price could drop to $485.40 Fibonacci retracement at 78.60%.
On Nov. 17-18, the bulls attempted to push Solana ($SOL) over the 20-day EMA ($221) but the bears refused to give up. This failure may have prompted traders to sell on Nov. 18, pushing the price to the 50 day SMA ($195).
Daily chart of SOL/USDT Source: TradingView
A sharp rebound was seen on Nov. 19, which indicated that bulls are protecting the 50-day SMA support.
The SOL/USDT currency pair could rally if buyers push the price higher than the 20-day EMA. The chances of the resumption or acceleration of the uptrend could be improved by a break above the downtrend line.
Contrary to the assumption, if the price falls below the 20-day EMA the bears will attempt to push the pair below both the 50-day SMA (trendline) and the trendline. The selling could get more intense if they are able to pull the pair below the 50-day SMA and trendline. If that happens, the pair could drop to $140.
Bulls tried to defend $1.87 support with a long tail in the Nov. 16-17 candlestick. However, aggressive selling by traders may have been prompted by the inability to sustain Cardano above $1.87.
Daily chart ADA/USDT Source: TradingView
The bulls are trying to get the price above $1.87. They could trap aggressive bears if they can keep the price above $1.87. This could lead to a strong recovery that may eventually reach the downtrend.
Contrary to the assumption, if the price falls below the current level ($1.99) or the 20-day EMA ($1.99) it will indicate that sentiment is still negative and traders are selling on rallies. The bears will attempt to lower the price to $1.70 and extend the decline to $1.50.
Although Ripple (XRP), was pushed above the moving averages Nov. 18, the candlestick’s long wick shows that there has been aggressive selling at higher levels. The psychological support level at $1 was reached and the price fell. Bulls are mounting a strong defense.
Daily chart of XRP/USDT Source: TradingView
Strong selling could be seen near the moving averages if the price rebounded from the current level. The bears will try to bring the XRP/USDT price below $1 if the price falls from the $20-day EMA ($1.13).
If they are able to pull it off, the pair may extend its slide towards $0.85. This support could be broken and the selling may accelerate.
Contrarily, if bulls continue to drive the price above the moving Averages, the pair may rise to the overhead resistance of $1.24.
Polkadot, (DOT), broke below the horizontal support of $38.70 on November 18, but the bulls intervened and stopped the slide at the uptrendline. This shows that there is strong demand at lower levels.
Daily chart of DOT/USDT Source: TradingView
The bears have the upper hand, however, as the 20-day EMA ($45), and the RSI in negative zone are both downsloping, respectively. The zone between $43.27 EMA and 20-day EMA will likely face stiff resistance.
The bears will try to lower the DOT/USDT pairs below $37.53. If the price drops from the overhead zone the bears will be successful. A close below the overhead zone will signal a bearish head-and-shoulders pattern. This could indicate a deeper correction. If bulls push the price higher than the 20-day EMA, it could lead to a rally to $47.83
Related: Shiba inu at risk of “topping signal” as SHIB prices drop 50% in three weeks
Dogecoin (DOGE), fell to $0.21 on Nov. 18. This level has served as support in the previous two declines. The bounce on Nov. 19, however, shows that bulls are trying a relief rally.
Daily chart of DOGE/USDT Source: TradingView
The downtrend line will likely be a strong resistance for the recovery. The bears are in control of the downsloping 20 day EMA ($0.25) as well as the RSI in negative territory.
The bears will attempt to bring the DOGE/USDT price below $0.21 if the price moves away from the downtrend line. The pair could fall to $0.19 if that happens.
If the bulls push the price higher than the downtrend line, this negative view will be invalidated. The pair will attempt to rally to $0.30.
SHIBA INU(SHIB), fell below $0.000043 on Nov. 18, but the bears couldn’t sink the price below its 50-day SMA ($0.000041). This means that bulls bought aggressively at lower levels.
Daily chart of SHIB/USDT TradingView
The 20-day EMA ($0.000051) will likely be a strong resistance for the relief rally. This resistance will likely be met with stiff resistance by the 20-day EMA ($0.000051).
The bears will attempt to lower the price below 50-day SMA. This could increase selling. The SHIB/USDT currency pair could complete a 100% retracement, and fall to $0.000027.
A break above the 20-day EMA and close above it will indicate that the correction is over. The pair could rally to $0.000057, and then to $0.000065.
Although Avalanche (AVAX), dropped from $110.41 Nov. 18, the candlestick’s long tail shows that bulls are still buying at lower levels.
Daily chart of AVAX/USDT Source: TradingView
Bulls are in control of the market, as evidenced by the rising 20-day EMA ($88), and the RSI close to the overbought area. Buyers are trying to reverse the downtrend and push the price higher than the all-time high.
If they succeed, then the AVAX/USDT pairing could begin its journey towards $115.14 and then the 161.8% Fibonacci extension at $128.01.
Alternatively, if bulls fail above $110.41, profit booking could occur and the pair could drop to the 20 day EMA. An uptrend could be in trouble if the price breaks or closes below this support. The pair could drop to $81.
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.