Bitcoin (BTC), finished November with a drop of around 7%. This was sharply in contrast to PlanB’s prediction of the “worst case scenario” of $98,000, who is the creator of the stock-to-flow model. The analyst called it a “big miss”, but he stated that he would continue to use the floor model for one month.
Glassnode analysts stated in their latest “Week-on-chain” report that Bitcoin’s November correction was the “least severe” in 2021. Analysts now anticipate that Bitcoin will witness a Santa rally similar to the 47% increase in December 2020 and the sharper 80% spike that took place in December 2017.
Everyday cryptocurrency market performance. Source: Coin360
Another positive development for Bitcoin bulls is that Eric Balchunas, a Bloomberg senior analyst on exchange-traded funds (ETF), stated that the “Fidelity Advantage Bitcoin ETF” was still awaiting regulatory approval in order to be listed on a Canadian stock exchange. Fidelity will be the largest management company that offers a spot-based Bitcoin ETF if this happens.
After starting December on a strong note, can bulls maintain their momentum? Let’s look at the charts for the top 10 cryptocurrency coins to see if we can find out.
Bitcoin has been holding onto the 20-day exponentially moving average (EMA), ($58,463) over the past two trading days. This indicates that the bears are defending 20-day EMA, but the bulls have not lost much ground.
Daily chart of BTC/USDT Source: TradingView
Buyers are trying to push the price higher than the 20-day EMA Dec. 1. It will be an indication that selling pressure is decreasing if they succeed. The BTC/USDT exchange could then reach the 50-day simple movement average (SMA), which is $60,828,
This is an important level that bears must defend as a break above it would open the way for a rally towards the overhead resistance zone of $67,000 to $69,000.
However, traders may be selling rallies if the price falls below the 50-day SMA or current level. The price could drop again to the 100-day SMA ($54.343). A break or close below $53,256.64 may signal a deeper correction.
Ether (ETH), broke and closed above resistance at $4,551 Nov. 30. The price climbed to $4,868 after a sustained buying spree on Dec. 1.
Daily chart of ETH/USDT Source: TradingView
The 20-day EMA ($4,380), has begun to rise, and the relative strength indicator (RSI), has risen into a positive zone. This suggests that bulls have regained control. The potential head and shoulders pattern (H&S), will be invalidated if bulls push the price higher than $4,868.
The ETH/USDT currency pair could then begin its upward march towards the $5,796 target. If the price falls below the overhead resistance, bears will try to sink the pair below $4,289. The pair could fall to $4,000.
Binance Coin (BNB), bounced from the 20-day EMA ($602) again on Nov. 30, indicating that sentiment is positive and traders are accumulating dips.
Daily chart BNB/USDT TradingView
The overhead resistance at $669.30 could be reached by the BNB/USDT pair. Breaking and closing above this resistance could complete inverse H&S, with a target of $828.60.
Although the $691.80 all-time high may be a resistance, bulls can overcome this obstacle and the pair could begin its journey towards the pattern target.
The bears will pull the price down below $669.30 to keep the pair below their 20-day EMA. The pair could slide to the 50 day SMA ($559) if they succeed.
Solana (SOL), rose above the 20 day EMA ($213) Nov. 30, but the candlestick’s long wick showed that selling was at higher levels. On Dec. 1, the bulls repurchased and pushed the price towards the resistance line of symmetrical triangle.
Daily chart of SOL/USDT Source: TradingView
If the triangle is broken and the close is above it, this will signal that the uncertainty between the bulls (and the bears) has been resolved to the upside. SOL/USDT could rally to $240 before retesting the record high of $259.90. This setup has a pattern target of $310.96.
Bulls will lose the ability to hold the price above the resistance level, which will signal that bears are continuing to sell during rallies. To indicate a short-term top, bears must sink below the triangle and maintain it there.
Cardano (ADA), declined on Nov. 30, but bulls bought this dip and attempted to resume the relief rally Dec. 1. The 20-day EMA ($1.74) could be reached if buyers push the price higher than $1.63. This would allow the bears to continue their challenge.
Daily chart ADA/USDT Source: TradingView
The bears are the dominant force, as evidenced by the RSI in negative territory and the downsloping 20 day EMA. The bears will attempt to reestablish the downtrend if the price drops below the 20-day EMA. A break below $1.40 could see the bearish momentum pick up.
If bulls push the price higher than the 20-day EMA it could signal that selling pressure is decreasing. The ADA/USDT currency pair could then reach the breakeven point at $1.87, and then to the 50-day SMA ($1.96).
Ripple (XRP), despite a strong support at $0.85, is now facing resistance at the $20 EMA ($1.04). This can be seen from the long wick of the Nov. 30 candlestick. One positive note is that bulls have not lost much ground.
Daily chart of XRP/USDT Source: TradingView
The bulls will attempt to break the overhead barrier if the price remains close to $1. Breaking and closing above the moving averages could signal that the XRP/USDT currency pair may remain between $0.85-1.41.
If the price falls below the current level, this will indicate that traders are selling at rallies close to overhead resistance levels. A break below $0.85 could trigger an acceleration in selling. The pair could slide to $0.70
Polkadot, (DOT), recovered from $32.21 on Nov. 28, and reached the neckline for the H&S patterns. Bears are in control of the downsloping 20 day EMA (40 USD) and the RSI at 43.
Daily chart of DOT/USDT Source: TradingView
The bears will try to bring the DOT/USDT price below $32.21, if the price falls from its current level or 20-day EMA. If they succeed, selling could increase and the pair could drop to $26.
If the price closes below the 20-day EMA, this bearish view could be retracted. This could lead to a rally to the 50 day SMA (43.63). The bulls can clear this hurdle and the up-move could extend to $49.78.
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Dogecoin’s candlestick (DOGE), which has been long for the past two days, shows that bears are defending its 20-day EMA ($0.22). This suggests that sentiment is still negative and traders are selling rallies.
Daily chart of DOGE/USDT Source: TradingView
The bears will attempt to bring the price down to $0.19. Breaking and closing below this support may result in a drop to $0.15. The RSI in negative territory and the downsloping 20 day EMA suggest that the downside is the best option.
Contrary to the assumption, if the price moves above $0.19 or the support level at $0.19, then it will indicate that traders are accumulating on dips. The DOGE/USDT currency pair could rally to the 50 day SMA ($0.24). This level could see bullish momentum increase.
On Nov. 30, Avalanche, (AVAX), formed a Doji candlestick structure that indicated uncertainty between the bears and bulls. The bulls drove the price higher on Dec. 1, resolving this indecision.
Daily chart of AVAX/USDT Source: TradingView
The AVAX/USDT pairing will likely face stiff resistance at the $129.26 Fibonacci level of 61.8% Fibonacci Retracement. If the price falls below this resistance, bears will attempt to push the price lower than the 20-day EMA ($110).
The pair could fall to $100 psychologically if they can do so. Breaking and closing below this support could indicate a shift in the short-term trend.
The opposite is true. If bulls push the price higher than $129.26, the pair can rise to $137.06, which would challenge the record at $147.
SHIBA INU, or SHIB, climbed above the breakeven level at $0.000040 (Nov. 29). This could have trapped bears who ran to cover short positions. The price jumped to $0.000054 on November 30, but the candlestick’s long wick indicates that there is not much demand at higher levels.
Daily chart of SHIB/USDT TradingView
The 20-day EMA ($0.000045) is flattened and the RSI nears the midpoint. This suggests that there could be range-bound activity in the near term. For a few days, the SHIB/USDT pairing could trade between $0.000035 to $0.000054
The pair could drop gradually to $0.000035 if the price breaks below the 20-day EMA. The bulls could also try to push the pair higher than $0.000054 if the price bounces off the 20-day EMA. The pair could rally to $0.000065 if they succeed.
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.