Bitcoin (BTC), and Ether (ETH), have fallen below their overhead resistance levels. This suggests that bears will continue to sell during rallies.
According to new research from Australia, the Ethereum Improvement Proposal 1559 upgrade has made Ether a more valuable store of value than Bitcoin. According to the report, Ether’s annual supply growth rate since EIP-1559 was 0.98%, compared with 1.99% for Bitcoin.
The popularity of Metaverse-related altcoins, nonfungible tokens and decentralized finance has led to a rise in demand for Ether. Many analysts are still bullish on Ether, and expect it to rally to between $6,000- $10,000.
Everyday cryptocurrency market performance. Source: Coin360
Glassnode, an on-chain analytics company, said that there is high open interest in derivatives markets and long-term holders could sell Bitcoin. A shakeout could be possible due to the “open interest leverage” in options and futures at an all-time high.
Could Bitcoin’s correction bring down the whole crypto sector? Let’s look at the top 10 cryptocurrency charts to see if we can find out.
Bitcoin’s price was unable to sustain above the 20-day exponentially moving average (EMA), ($57,905) between Nov. 30th and Dec. 1. This indicates that the bears are defending 20-day EMA vigorously.
Daily chart of BTC/USDT Source: TradingView
The bears will attempt to keep the price below the 100 day simple moving average (SMA), $54,485, and the Nov. 28 intraday lowest at $53,256.64. The BTC/USDT pair may plummet to psychologically critical support of $50,000 if they succeed.
This support is important to monitor because selling could pick up momentum and drop the pair to $40,000. The downwardly trending 20-day EMA, and the relative strength indicator (RSI), in the negative zone indicate that the path of least resistance is towards the downside.
Contrary to popular belief, if the price bounces off the 100-day SMA, and rises above 20-day EMA it will signify accumulation at lower levels. The price could then reach the 50-day SMA ($60.750).
Ether fell to $4,778.75 from Dec. 1. This indicates that bears are actively defending the record $4,868. On Dec. 3, the price fell to the 50-day SMA ($4,319)
Daily chart of ETH/USDT Source: TradingView
If the price recovers from its current level, this will indicate that traders are buying dips and the sentiment is positive. The bulls will attempt to push the price higher than $4,868.
If they succeed, the ETH/USDT pairing could resume its uptrend with the next goal at $5,796. If the price falls below the 50-day SMA it could indicate that traders are rushing to exit. The price could fall to $3,900 as strong support.
On Dec. 1, the bulls attempted to push Binance Coin, (BNB), above the overhead resistance of $669.30 but failed. This indicates that bears are still a formidable challenge at higher levels.
Daily chart BNB/USDT TradingView
The 20-day EMA ($602) is flattened and the RSI is close to the midpoint. This suggests that there may be range-bound action in near future.
The BNB/USDT exchange rate could fall to the 50-day SMA ($564) if the price falls below the 20-day EMA. This is an important level that bulls must defend as a break below could cause the price to drop to the 100-day SMA ($494).
The bulls will try to push the pair higher than the $669.30 to 691.80 resistance zone if the price increases from the current level and the 50-day SMA.
Solana (SOL), broke above the resistance line for the symmetrical triangle, but the bulls couldn’t sustain higher levels. On Dec. 3, the bears pulled the price into the triangle.
Daily chart of SOL/USDT Source: TradingView
If the price bounces off the 20-day EMA (215) bulls will attempt to restart the up-move by pushing SOL/USDT above the overhead resistance of $243.12.
Contrary to the assumption, if the price falls below the 50-day SMA ($210), then it will indicate that the recent breakout above resistance may have been a bull trade. The bears will attempt to lower the price below that support line.
Breaking below the 100-day SMA ($178), could trigger a deeper correction that could reach $140.
Cardano (ADA), which recovered strongly on Dec. 2, hit a wall at $20-day EMA ($1.72). The bears may have been selling heavily because the bulls failed to clear the overhead hurdle.
Daily chart ADA/USDT Source: TradingView
Now, the sellers will attempt to lower the price to the $1.50-$1.41 support zone. This support is crucial for bears to protect because if it breaks, selling could accelerate and the ADA/USDT pairs may begin its downward journey towards $1.
Contrary to popular belief, a price rise above the support zone will signal buying at lower levels. The bulls will attempt to push the price higher than the 20-day EMA. The pair could rally to $1.94 at the 50-day SMA.
Ripple (XRP’s) inability to break above $1 psychological level indicates that bears are selling aggressively on minor rallies. The price is now falling and bears will attempt to push it to $0.85.
Daily chart of XRP/USDT Source: TradingView
The RSI below 37 and the downsloping 20 day EMA ($1.02) indicate that sellers have control. The XRP/USDT pair may fall to $0.70 if bears continue to sink below $0.85.
However, if the price rises above the $0.85 support or breaks above the 20 day EMA, it could indicate that selling pressure is decreasing. The price could rise to the 50 day SMA ($1.09).
Polkadot, (DOT), fell below the H&S breakdown level at $38.70 on Nov. 30, and broke below the 100 day SMA ($37). The bears will attempt to bring the price down to $32.21.
Daily chart of DOT/USDT Source: TradingView
This level could be broken and the selling could escalate. The DOT/USDT pair could fall to $26 as the next support. Bears are in control of the market, as evidenced by the RSI in negative territory and the downsloping 20 day EMA ($39).
If the price rises above the 20-day EMA and then falls below it, it will be a sign that markets have rejected lower levels. This could lead to a quick covering by several aggressive bears. The pair could then reach the 50-day SMA (43), and eventually to $47.50.
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Dogecoin (DOGE), a cryptocurrency that is traded on the Ethereum platform, has failed to move above the 20-day EMA ($0.22) in recent days. This suggests that sentiment is still negative and bears have been selling on rallies.
Daily chart of DOGE/USDT Source: TradingView
The 20-day EMA is sloping downward and the RSI below 36 indicate that the downside is the path of least resistance. The DOGE/USDT pair may drop to $0.15 if bears lower the price below $0.19.
However, if the price rises from its current level, or rebounds off $0.19, and breaks above the 20 day EMA, this will signal strong accumulation at lower levels. The price could rally to the 50 day SMA ($0.24).
Terra’s LUNA token gained momentum after it broke above the moving averages Nov. 28. The bulls’ strong buying drove the price to an all-time high of Nov. 30, signaling the resumption in the uptrend.
Daily chart of LUNA/USDT Source: TradingView
Bulls are buying aggressively if the bears fail to stop the upward movement at the resistance line. The LUNA/USDT price pair could rally up to $85.07 if it maintains above the channel.
Contrarily, traders may be making higher profits if the price falls and crashes back into the channel. The price could fall to the 20-day EMA (51).
If the price rebounds from this level, it will indicate that sentiment remains positive. A break below the 20 day EMA could bring the price down to support.
Avalanche (AVAX), fell below the 61.8% Fibonacci level of retracement at $129.26 Dec. 1. This could have prompted traders to book profit, and the price fell below the 20-day EMA ($109), Dec. 2.
Daily chart of AVAX/USDT Source: TradingView
The 20-day EMA is flat and the RSI at the midpoint suggests a balance between supply/demand.
The AVAX/USDT pair could rise to $129.26 if bulls continue pushing the price above the 20-day EMA. Breaking and closing above this level could lead to a retest of the record $147 high.
Alternatively, if the price does not sustain above the 20 day EMA, it could indicate that traders are selling on minor rallies. The bears will attempt to lower the price below $100 psychological support. The pair could fall to the SMA (50-day) ($87).
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.