Bitcoin (BTC), and many other altcoins, are still below their overhead resistances. This indicates that bears may be selling on rallies.
Ki Young Ju, CEO at CryptoQuant’s on-chain analytics firm CryptoQuant claims that “whales are depositing Bitcoin into exchanges”. Curiously, this has also continued, and the reserves are now hovering around their lowest level since mid-2018.
Glassnode stated that long-term holders might be “reducing their expenditure, and therefore are more likely to add to positions, rather than exit them.”
Everyday cryptocurrency market performance. Source: Coin360
Although Bitcoin is currently in a correction phase in dollar terms it has proved to be a great savior for Turkish investors in terms of purchasing power. The lira is still losing value in 2021. However, Bitcoin has been consistently hitting new highs in lira terms. It crossed 700,000.lira on November 23.
Let’s look at the charts for the top 10 cryptocurrencies and see if it is time to rebound or if the correction could deepen.
Although the bulls have attempted to stop the correction at $55,000, the bears refuse to give up. Bitcoin’s Nov. 23 relief rally fell to $58,000 from $58,000. This indicates that bears are trying to turn this level into resistance.
Daily chart of BTC/USDT Source: TradingView
The moving averages completed a bearish crossover, and the relative strength indicator (RSI), continues to languish below the negative territory. This indicates that bears hold the upper hand.
The selling could intensify if the price falls below $55,317. If it does, the BTC/USDT exchange rate could fall to the $52,500-to $50,000 support zone. This zone will be defended by the bulls, but sellers may sell at the 20-day exponential moving median ($60,084).
If the price rises above the downtrend line, this negative view will be invalidated. The pair could then try to resume the upward trend.
On Nov. 22, Ether (ETH), rebounded from the neckline of H&S’s developing head and shoulders pattern (H&S). The neckline rebound reached the 20-day EMA ($4,337) Nov. 23, which acts as a strong resistance.
Daily chart of ETH/USDT Source: TradingView
The bears will attempt to lower the ETH/USDT price below the neckline if the price falls below its current level. It will complete the bearish pattern that has a target of $3,047 if they succeed.
However, if bulls push prices above the 20-day EMA or the resistance at $4.451, it may indicate that selling pressure is decreasing. The pair will attempt to rally to the overhead resistance zone of $4,772.01-4,868. The resumption will be signaled by a break or close above this zone.
Binance Coin (BNB), which was $605.20 on Nov. 21, declined to $585.20 and dipped below the 20-day EMA ($584). The bears were unable to profit from this weakness and bring the price down to the 50-day SMA ($532).
Daily chart BNB/USDT TradingView
This means that bulls are now accumulating at lower levels. The overhead hurdle was cleared by buyers on Nov. 23, but this was again blocked by the bears who aggressively defended the level. The current price is hovering close to the 20-day EMA.
The BNB/USDT pair may attempt to break the $669.20 resistance level if the price moves up from its current level. The pair could test the $691.80 all-time high if it crosses this level.
The bears will attempt to pull the pair back to the 50-day SMA if the price remains below the 20-day EMA. Breaking and closing below this support could indicate a deeper correction.
Solana (SOL), broke below the 20 day EMA ($219) Nov. 22. On Nov. 23, the bulls drove the price higher than this level, but it was not able to sustain these higher levels. This shows that bears are defending 20-day EMA.
Daily chart of SOL/USDT Source: TradingView
The bears will attempt to bring the price below the support line of a symmetrical triangle. The bulls must defend this level as a break below it could swing the advantage in their favor. The SOL/USDT currency pair could then begin its downward movement to $153 and eventually to $140.
If the price rises and breaks above the resistance level, it will indicate that the bulls are in control. The price could rally to $259.90, where bears will likely mount stiff resistance.
Cardano (ADA), which was down from the $20-day EMA ($1.90 on Nov. 21), and the bears have pulled today’s price below $1.70. The selling momentum could pick up if the bears can keep the price below $1.70.
Daily chart ADA/USDT Source: TradingView
The bears have control of the market, as evidenced by the RSI close to the oversold zone and the downsloping moving Averages. The ADA/USDT pairing could drop to $1.50, where buyers can step in.
To show that selling pressure is decreasing, bulls will need to push the price higher than the 20-day EMA. If the trend breaks above the downtrend line, the bulls may win.
XRP recovered from the psychological support of $1 on Nov. 23, but the bulls are not able to push it to the 20-day EMA ($1.10). This suggests that bears are still selling on any minor relief rally.
Daily chart of XRP/USDT Source: TradingView
Once again, the bears will try to keep the price below $1. If they succeed, selling could accelerate and the price of the XRP/USDT exchange pair could fall to $0.85.
The downwardly sloping 20 day EMA and negative zone RSI suggest that the path to the downside is the most likely. If the price rises above the 50-day SMA ($1.12), this negative view will be invalidated. This could lead to a rally to $1.24.
Polkadot, (DOT), rebounded from the uptrend line Nov. 23, but the bulls couldn’t sustain higher levels. The price is now back at the uptrend line, but has turned down again.
Daily chart of DOT/USDT Source: TradingView
A support level’s frequent retest tends to lower it. The moving averages have made a bearish crossover, and the RSI is at 40. This indicates that bears are in control.
The DOT/USDT pair will form a bearish H&S pattern if the price falls below $37.53. This could lead to a deeper correction towards $26.
If the price rebounded from its current level, bulls will attempt to break the barrier of $43.56. It will indicate that sellers are losing their grip if they manage to pull it off.
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Dogecoin (DOGE), bounced off critical support at $0.21 on Nov. 23, but the candlestick’s long wick suggests that bears are continuing to sell near the downtrend.
Daily chart of DOGE/USDT Source: TradingView
Today’s DOGE/USDT price action saw the pair break below $0.21 support. The bears will now try to push the price back to $0.19. This support is crucial for bulls to protect as a crack could lead to a plunge to $0.15.
Bears are ahead of the pack, as indicated by the RSI at 37 and the downsloping 20 day EMA ($0.24). A break above the downtrend line will signal strength. This will signal a possible return of the bulls.
Avalanche (AVAX), which was at its all-time high of $147 on Nov. 22, failed to move the bulls. This indicates that the overhead resistance is being aggressively defended by bears. This could have led to profit-booking by short-term traders.
Daily chart of AVAX/USDT Source: TradingView
The AVAX/USDT pair has begun a correction and could find support in the area between the 38.2% Fibonacci retracement levels at $112.63, and the 20-day EMA ($103).
If the price bounces off of this zone, it will indicate that sentiment is positive and traders are buying dips. The bulls will attempt to push the price above its all-time high, thereby resuming the uptrend.
A break or close below the 20 day EMA could signal that demand exceeds supply. The pair could drop to $91.39 Fibonacci retracement at 61.8%.
The Crypto.com Coin (CRO), has been in a strong upward trend for the last few days. The vertical rally has pushed RSI to close to 90, indicating that rally is too hot in the short-term. This could lead to a slight correction or consolidation over the next few days.
Daily chart CRO/USDT Source: TradingView
Profit-booking may occur near the psychologically significant barrier at $1 during the up-move. The CRO/USDT pair may begin a correction if that happens. The 38.2% Fibonacci Retracement Level at $0.73 is the first support.
Vertical rallies are generally followed by sharp falls. The correction could extend to $0.59, which is the 61.8% level of the retracement. If the price rises above $0.73, bulls will attempt to reestablish the uptrend.
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.