Bitcoin (BTC) dropped below $56,000 on Nov. 19, completing a near 20% correction from the all-time high. The Crypto Fear & Greed Index, which remained in the greed zone for most of the past two months, has plummeted into the fear category with a reading of 34.
Cryptocurrency research firm Delphi Digital said in a recent report that the sell-off in Bitcoin was “largely driven by a wave of liquidations rather than a fundamental shift in narrative,” and the analysts expect the drawdown to be “relatively short-lived.”
The recent correction does not seem to have shaken the long-term holders. According to the Hodl Waves metric, the supply held by investors who purchased over the past 6-to-12-month period has soared to 21.4% as of Nov. 17 compared to 8.7% at the start of June.
Could lower levels attract strong buying, resulting in a sharp recovery or will bears sell on rallies? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin bounced off the 50-day simple moving average ($59,718) on Nov. 17 but the failure of the bulls to push the price above the 20-day exponential moving average ($61,696) indicates that buying dries up at higher levels.
The BTC/USDT pair plunged and closed below the 50-day SMA on Nov. 18. The moving averages are on the verge of a bearish crossover and the relative strength index (RSI) is in the negative territory, indicating that bears have the upper hand.
If bulls fail to push and sustain the price above the moving averages, the selling may intensify and the pair could drop to the $52,500 to $50,000 support zone.
Conversely, if bulls thrust the price above the moving averages, the pair could rise to the downtrend line. This level may act as a hurdle but if bulls push the price above it, the pair may rise to the overhead zone at $67,000 to $69,000.
ETH/USDT
Ether (ETH) rebounded off the 50-day SMA ($4,082) on Nov. 17 but the bulls could not clear the overhead hurdle at the 20-day EMA ($4,387). This intensified selling and the price dipped below the 50-day SMA on Nov. 18.
The bears could not sustain the selling pressure at lower levels, which may have attracted strong buying from the aggressive bulls. The bulls have pushed the price back above the 50-day SMA today and the ETH/USDT pair could now reach the 20-day EMA where the bears may again pose a stiff challenge.
If the price turns down from the 20-day EMA, the bears will try to pull and sustain the pair below $3,956.44. That could clear the path for a possible decline to $3,371. Alternatively, a break and close above the 20-day EMA will signal that the corrective phase may be over. The pair could then retest the all-time high.
BNB/USDT
Binance Coin (BNB) plunged to the 50-day SMA ($517) on Nov. 18 but the strong rebound today indicates aggressive buying at lower levels. The bulls will now try to push the price above the 20-day EMA ($585).
If the BNB/USDT pair sustains above the 20-day EMA, it will indicate that the short-term correction may be over. The pair could then rise to the overhead resistance zone at $669.30 to $691.80 where the bears may pose a stiff challenge.
The break and close above the overhead resistance could signal the resumption of the uptrend. On the contrary, if the price turns down from the 20-day EMA, the likelihood of a break below the 50-day SMA increases. The pair could then drop to the 78.60% Fibonacci retracement level at $485.40.
SOL/USDT
The bulls tried to push Solana (SOL) above the 20-day EMA ($221) on Nov. 17 and 18 but the bears were in no mood to relent. The failure to clear this hurdle may have attracted selling from traders on Nov. 18, which pulled the price to the 50-day SMA ($195).
Aggressive buying at lower levels has resulted in a sharp rebound today, indicating that bulls are defending the 50-day SMA support.
If buyers propel the price above the 20-day EMA, the SOL/USDT pair could rally to the downtrend line. A break and close above the downtrend line could improve the prospects of the resumption of the uptrend.
Contrary to this assumption, if the price turns down from the 20-day EMA, the bears will make one more attempt to pull the pair below the 50-day SMA and the trendline. If they manage to do that, the selling could intensify and the pair may drop to $140.
ADA/USDT
The long tail on the Nov. 16 and 17 candlestick shows that bulls attempted to defend the strong support at $1.87. However, the failure to sustain Cardano (ADA) above $1.87 may have prompted aggressive selling from traders on Nov. 18.
The bulls are currently trying to push the price back above $1.87. If they manage to sustain the price above this level, it could trap the aggressive bears. That could start a strong recovery which may reach the downtrend…
cointelegraph.com