Despite the uncertainty posed by the new Omicron version of COVID-19, the crypto and global equity markets experienced a strong recovery on Nov. 29, despite the uncertainty.
The recent dip seems to be viewed by long-term investors as a prime opportunity for buying. MicroStrategy recently filed that it had purchased 7,002 Bitcoins (BTC) at an annual average price of $59,000. MicroStrategy now has 121,044 Bitcoin in its total, with an average purchase price of $29,534 for each coin.
Everyday cryptocurrency market performance. Source: Coin360
Material Scientist, an analytics resource, said that “a lot” of Bitcoin liquidity had been taken and warned that “stop-hunters” might attempt to shake the weak hands with a fall.
Is the current recovery a bulltrap or the beginning of a sustained rally for relief? Let’s look at the charts for the top 10 cryptocurrency coins to find out.
Bitcoin’s relief rally is being held back by resistance at the 20 day exponential moving average (EMA), ($58,712). This indicates that sentiment is still negative and bears are trying to sell rallies to the overhead resistance.
Daily chart of BTC/USDT Source: TradingView
The 20-day EMA is still sloping down. However, the RSI is above 46, which suggests that bearish momentum may be waning.
To signal the end of the correction phase, the bulls must push the price higher than the 50-day SMA ($60,805). The overhead resistance zone of $67,000-69,000 could be challenged by the rally.
However, bears will try to break the support at the 100 day SMA ($54,000.) if the price drops sharply from the 20 EMA. The BTC/USDT pair may fall to the psychologically crucial level of $50,000 if that happens.
This level is expected to be defended by the bulls as panic selling could occur if it falls below. The pair could slide to the $40,000.
Ether (ETH), rebounded from the neckline in the developing head-and shoulders (H&S), pattern on Nov. 28, suggesting bulls are fighting for the level. The price climbed above the $20-day EMA ($4,316), thanks to sustained buying on Nov. 29.
Daily chart of ETH/USDT Source: TradingView
If the overhead resistance at $4,551 is broken, it will signal that the correction is over. The ETH/USDT currency pair could rally to $4,868. Breaking above this level will negate the bearish setup, opening the door for a rally to $5796.
If the price falls below the current level, and the 50-day SMA ($4,243), then the bears will attempt to lower the pair below their neckline. A close below the SMA will complete the bearish setup, and begin a down move.
Selling may be more rapid below the 100-day SMA ($3,794). The pair could then begin its journey towards the pattern target at $3,000.
Binance Coin’s Nov. 28 candlestick shows that bulls are buying dips below the 20 day EMA ($595). Bulls will now try to push the price up to the overhead resistance zone of $669.30-691.80.
Daily chart BNB/USDT TradingView
An inverted H&S pattern will be completed if the price breaks and closes above $669.30. The $828.60 target is the objective of this bullish setup. Bulls are trying to get the upper hand. The 20-day EMA has been rising and the RSI stands at 56.
A break below the 20-day EMA will signal weakness. The bears will attempt to lower the price and keep it below the 50 day SMA. This could lead to a drop in the price below $510.
Solana (SOL), once again fell below the support line for the symmetrical triangle, but bears couldn’t sustain lower levels. This indicates that aggressive buying is possible on dips.
Daily chart of SOL/USDT Source: TradingView
On Nov. 29, the SOL/USDT-pair broke above the 50 day SMA ($204). The bulls will now attempt to overcome the barrier at the 20 day EMA ($212). The pair may rally to the resistance line, where bears could pose a challenge if they succeed.
If the resistance line is broken and the close is above it, the correction could be over. The pair could rally to $240, and then to $259.90.
The bears will attempt to keep the pair below the support level if the price drops below the 20-day EMA. A break below the 100-day SMA ($172) could lead to increased selling.
Cardano (ADA), is currently in a downtrend. Although the price rebounded to $1.41 on Nov. 28, the bulls are having trouble maintaining the higher levels.
Daily chart ADA/USDT Source: TradingView
The 20-day EMA ($1.78) continues its downward slope. The RSI is in the oversold zone, indicating bears are in charge. The bears will try to lower the ADA/USDT price below $1.40 if the price drops from its current level.
The downtrend could be reopened if they are successful, with the next objective at $1.20. To negate the bearish view, the bulls must push the price higher than the 20-day EMA. The pair could then move up to $1.87, where it will face strong resistance.
Ripple (XRP), Nov. 28 candlestick has a long tail that shows aggressive buying close to the strong support of $0.85. The psychological level of $1 has been reached, which could act as resistance.
Daily chart of XRP/USDT Source: TradingView
If the price falls below the current level, this will indicate that bears have turned the $1 level into resistance. The XRP/USDT currency pair could drop to $0.85. Breaking and closing below this level could signal a deeper correction towards $0.70.
Alternativly, if the price goes above $1, the pair can rally to the 20 day EMA ($1.05). Although this level can be a strong resistance, bulls could overcome it and rally to the 50 day SMA ($1.10).
On Nov. 28, Polkadot (DOT), bounced off $32.21, indicating that bulls are trying to defend strong support at $32. The 100-day SMA (37.16) is selling, suggesting that bears may be selling relief rallies.
Daily chart of DOT/USDT Source: TradingView
The bears will try to prolong the decline if the price falls below the current level, or the breakdown level of $38.70. The next leg of the down movement could begin if the price breaks below $32, which could lead to a close below $32.
The 20-day EMA ($40.41), continues to slide down, and the RSI remains in the negative zone. This suggests that the bears have the upper hand. To invalidate the bearish view, the bulls must push the DOT/USDT pairing above the $38.70 breakdown level.
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Dogecoin (DOGE), bounced off $0.19 support on Nov. 28, indicating that bulls are accumulating lower levels. Although the buyers pushed the price higher than the $0.21 overhead resistance Nov. 29, they could not overcome the hurdle at the $20-day EMA ($0.22).
Daily chart of DOGE/USDT Source: TradingView
The candlestick’s Nov. 29 candlestick has a long wick that indicates negative sentiment and traders are buying rallies. The bears will attempt to lower the price below $0.19 if the price holds below $0.21. The DOGE/USDT pair may fall to $0.15 if they do so.
Contrary to popular belief, if bulls push the price higher than the 20-day EMA, this will indicate a shift in the short-term trend. If this resistance is broken, the pair could rise to the 100 day SMA ($0.24), and gain momentum.
Avalanche (AVAX), bounced off the 20 day EMA ($106), on Nov. 27, and again on Nov. 28, but bulls are having trouble maintaining the rebound. This suggests that demand is drying up at higher levels.
Daily chart of AVAX/USDT Source: TradingView
A shallow rebound could increase the likelihood of a break below 20-day EMA. The selling could get more intense if bears drop the price below the $20 EMA and $100 support zones. The AVAX/USDT exchange rate could drop to $91.39 Fibonacci retracement at 61.8%.
If the price bounces off the support zone, bulls will attempt to recover. The pair could reach $130 if buyers push the price higher than $120. If the resistance is broken, it could lead to a retest at the record $147.
SHIBA INU(SHIB) has traded below $0.000040 over the past three trading days, but the bears haven’t been able to capitalize on this weakness to pull the price up to the 100-day SMA ($0.000027). This is a sign that there are not many sellers at lower levels.
Daily chart of SHIB/USDT TradingView
The SHIB/USDT pair may rise to the $20 EMA ($0.000044) if bulls continue to drive the price higher than $0.000040. This level will likely act as strong resistance. If the price falls below this level, it will signal that sentiment is negative and traders are selling rallies.
The bears will attempt to bring the price down below $0.000035, and then resume their downward trend. If bulls push the price higher than the 50-day SMA (0.000046), this negative view will be invalidated in the short-term. The price could rally to $0.000052.
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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.