Bitcoin (BTC), which is currently trading at $60,000, continues to remain below that level. This indicates that traders are selling more Bitcoins.
According to reports, the S&P 500 reached a new record high on November 22 after US President Joe Biden renominated Jerome Powell for a second term in his role as Federal Reserve chair. The U.S. dollar currency (DXY), also increased due to this news, reaching its highest level since July 2020.
Sharp gains in the DXY are usually inversely related to Bitcoin, and this can also be seen in November. The DXY has risen by 2.3% in November while Bitcoin is down 5.5%.
Everyday cryptocurrency market performance. Source: Coin360
TechDev, an independent market analyst, stated that Bitcoin’s 2021 performance is similar to 2017’s price action but with a delay of around 5-8 days. The eagerly awaited blowoff top phase in Bitcoin will likely occur if the correlation continues.
Is the current decline the beginning of a more severe correction or the last dip in the uptrend? Let’s look at the charts for the top 10 cryptocurrency coins to see what happens.
Bitcoin’s recovery from $55,600 Nov. 19 to the 50-day SMA ($60,350 Nov. 20) was successful but the bulls failed to overcome this hurdle. This means that bears are trying to turn the 50-day SMA into resistance.
Daily chart of BTC/USDT Source: TradingView
The moving averages are about complete a bearish crossover, and the relative strength indicator (RSI), is in negative territory. This suggests that the path to the downside is the most likely.
If the price falls below $55,600, this will signal a deeper correction towards the $52,500-to $50,000 support zone.
If the price rises above the downtrend line, this negative view will be invalidated. This will signal that the correction is over.
The BTC/USDT pairing could then begin its northward march towards the overhead resistance zone of $67,000 to $69,000.
The relief rally of Ether (ETH) from the Nov. 18, intraday low at $3.956.44 climbed above the 20-day exponentially moving average (EMA), ($4,364) on Nov. 20, but the bulls couldn’t sustain higher levels. On Nov. 21, the bears brought the price below the 20-day EMA.
Daily chart of ETH/USDT Source: TradingView
The ETH/USDT price pair fell to the 50-day SMA ($4,240.78) on Nov. 22, but the candlestick’s long tail indicates that bulls are protecting this support. The pair could rally if buyers push the price higher than $4,451. This would allow it to reach the $4.519.78 Fibonacci level of retracement and then the $4,672.93 level of retracement.
The bears will attempt to lower the pair below 50-day SMA if the price drops from its current level. The pair could fall to $3,956.44. A head and shoulders pattern will be completed if the pair breaks and closes below this level. The pair could drop to $3,000. And eventually, the target pattern at $3,047.
Binance Coin (BNB), rebounded from the 50-day SMA (526 on Nov. 19, but the bulls couldn’t extend the relief rally beyond the 61.8% Fibonacci level at $602.40.
Daily chart BNB/USDT TradingView
On Nov. 22, the bears dragged the price below its 20-day EMA (585). If the price remains below the 20-day EMA, bears will attempt another attempt to bring the BNB/USDT pair under the 50-day SMA. The pair could fall to $485.40 if they succeed.
If the price rises above $605.20 from its current level, it will indicate that bulls are back in play. The overhead resistance zone of $659.50-669.30 could be reached and the pair could rally.
The bulls and bears are not in the clear with the flattish 20-day EMA or the RSI at the midpoint.
Solana (SOL) rebound from the 50-day SMA ($198), hit a strong hurdle on Nov. 21 at the downtrendline, indicating that bears continue selling on rallies.
Daily chart of SOL/USDT Source: TradingView
The price action over the last few days has shown a symmetrical triangle pattern, which suggests a balance between demand and supply. The bulls will be able to shift the equilibrium towards their favor if they break above the resistance line. The SOL/USDT pairing could then test the record at $259.90.
The pair could also drop to the support line if it falls below the 20-day EMA. To gain the upper hand, the bears will need to lower the price below the support. The pair could drop to $153.
Cardano (ADA), rose above the breakdown price at $1.87 on Nov. 20, but the bulls couldn’t push the price higher than the 20-day EMA ($1.95). This indicates that sentiment is still negative and traders are selling rallies to the 20 day EMA.
Daily chart ADA/USDT Source: TradingView
On Nov. 21, the price fell below $1.87 and the bears are now trying to bring the ADA/USDT pairing below $1.70. The selling could get more intense if they succeed and the pair could fall to $1.50.
Contrary to popular belief, if the price rises from its current level and breaks above 20-day EMA, it could rally to the downtrendline. If the price breaks or closes above this resistance, it could signal that the correction is over.
Although Ripple (XRP), rebounded from the strong support at $1 on Nov. 19, the recovery attempt failed at $1.10, which indicates that demand is drying up at higher levels.
Daily chart of XRP/USDT Source: TradingView
The bears are ahead of the pack, as the RSI in negative territory and the downsloping 20 day EMA ($1.12) indicate this. The selling momentum could increase if the price falls below $1. If that happens, the XRP/USDT exchange rate could fall to $0.85.
If the price rises above the moving Averages and bounces off its current level, it will be a sign that bulls are aggressively protecting the $1 support. The pair could then begin its northward march towards $1.24.
Polkadot, (DOT), rebounded from the uptrend line Nov. 18, but the relief rally faces resistance at the 50 day SMA ($42.96). This suggests that bears are trying to turn the 50-day SMA against them.
Daily chart of DOT/USDT Source: TradingView
The moving averages are very close to completing a bearish cross-over and the RSI remains in the negative zone. This indicates that bears have complete control. The DOT/USDT pair may drop to $32 if the price breaks below the uptrend line. If it does, then it could fall to $29.
Contrary to the assumption, if the price rises from its current level and breaks above moving averages, it will indicate that bulls continue buying dips. The overhead resistance zone of $47.83 to $49.78 could be reached and the pair could rally.
Related: Institutional managers bought a dip in crypto funds’ weekly inflows of $154M
Avalanche (AVAX), Nov. 21 candlestick has a long wick that shows traders made profits at the 200% Fibonacci extension level of $146.18. Lower levels attracted buyers and bulls tried to resume the uptrend Nov. 22.
Daily chart of AVAX/USDT Source: TradingView
To signal the return of the uptrend, buyers will need to push the price higher than $147. The AVAX/USDT pairing could rally to the 261.8% Fibonacci extension at $175.58.
The upsloping 20 day EMA ($100), suggests bulls are in control, but the RSI of above 81 indicates that rally may be too hot in the short-term.
Short-term traders might rush to the exit if the price drops below $147. This could bring the price down to $123. Breaking below this support could signal a deeper correction up to $110, and then the 20-day EMA.
Dogecoin (DOGE), which had been supported at $0.21 on Nov. 19, lost its momentum and settled at $0.23. This weak relief rally suggests that demand is drying up at higher levels.
Daily chart of DOGE/USDT Source: TradingView
The bears are ahead of the pack due to the RSI in negative territory and the downsloping 20 day EMA ($0.24). The DOGE/USDT pair may drop below $0.21 if sellers push the price lower than $0.21.
Contrary to popular belief, if the price rises above the current level, it could reach the downtrend line. To signal that the correction is over, the bulls will need to push the pair higher than this resistance.
SHIBA INU, or SHIB, declined from the 20-day EMA ($0.000049) Nov. 20, indicating that sentiment has turned negative and traders have begun to sell on rallies towards the overhead resistance levels.
Daily chart of SHIB/USDT TradingView
The bears want to lower the price below the 50 day SMA ($0.000043) as well as the 78.6% Fibonacci level of $0.000040. The SHIB/USDT pair could fall to $0.000027 if they succeed. This would complete a 100% retracement.
The bears are in control of the market, as indicated by the RSI in negative territory and the 20-day EMA that is falling. Contrary to popular belief, bulls will attempt to push the price above the 20-day EMA to initiate a move toward $0.000057 if it rebounded from the current level.
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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.