Bitcoin (BTC) and Ether (ETH) are testing psychologically important support levels at $60,000 and $4,000 respectively. Both these levels are critical to keep the uptrend intact in the short term.
While the fall may scare off leveraged traders, Bitcoin whales seem to be viewing this dip as a buying opportunity. On-chain data shows that the third-largest Bitcoin whale added 207 Bitcoin to the holdings at an average price of about $62,053 per Bitcoin.
After the latest purchase, the whale’s holding has increased by 635 Bitcoin in November, according to journalist Colin Wu.
However, it is not all bullish news for Bitcoin and cryptocurrencies. The U.S. dollar has risen to a sixteen-month high on expectations that soaring inflation may force the U.S. Federal Reserve to raise rates and accelerate the tapering of its $120 billion a month asset purchase program.
LMAX Group currency strategist Joel Kruger also said that a strengthening dollar may hit risky assets the hardest and that could be the reason for the recent pullback in Bitcoin and altcoins.
Will bulls defend the strong support levels and stage a recovery or will aggressive selling pull crypto prices below their strong support levels? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin plummeted below the 20-day exponential moving average ($62,607) and the support line of the rising wedge pattern on Nov. 16. This is the first sign that bulls may be losing their grip.
The buyers are attempting to defend the 50-day simple moving average ($59,122) but the shallow bounce indicates a lack of urgency among the bulls to buy at current levels.
If the price turns down from the current level or the 20-day EMA, the bears will try to sink the BTC/USDT pair below $57,820. If they succeed, the selling could pick up momentum and the pair may plummet to $52,500.
Contrary to this assumption, if the price turns up from the current level and rises above the 20-day EMA, it will indicate strong accumulation at lower levels. The pair could then retest the overhead zone at $67,000 to $69,000.
ETH/USDT
Ether broke below the ascending channel on Nov. 15 and that was followed by further selling on Nov. 16, which pulled the price below the 20-day EMA ($4,439). This was the first close below the 20-day EMA since Oct. 1.
The long tail on today’s candlestick suggests that bulls are attempting to defend the 50-day SMA ($4,033). The 20-day EMA has started to turn down and the relative strength index (RSI) has dropped in the negative zone, indicating that bears are making a comeback.
If the price turns down from the current level or the 20-day EMA, it will suggest that sentiment has turned negative and traders are selling on rallies. The ETH/USDT pair could then breach the 50-day SMA and plummet to the next support at $3,600.
This bearish view will be negated if the pair rises from the current level and breaks above the 20-day EMA.
BNB/USDT
Binance Coin (BNB) turned down from the overhead resistance at $669.30 on Nov. 15 and plunged below the 20-day EMA ($591) on Nov. 16. The selling continued today and the bears pulled the price near the 50% Fibonacci retracement level at $552.30.
The long tail on today’s candlestick suggests strong buying at lower levels. The buyers will now try to push the price back above the 20-day EMA. If they manage to do that, the BNB/USDT pair will again try to rise to $669.30.
Alternatively, if the price turns down from the 20-day EMA, it will suggest that the sentiment has turned negative and traders are selling on rallies. The pair could then extend its decline to the 50-day SMA ($509).
SOL/USDT
Solana (SOL) plunged below the ascending channel and the 20-day EMA ($224) on Nov. 16, indicating that the bulls may be losing their grip. The buyers are attempting to defend the breakout level at $216 but any bounce is likely to face selling at higher levels.
The 20-day EMA has flattened out and the RSI has dropped to the midpoint, indicating a balance between supply and demand. This equilibrium will shift in favor of the bears if the price breaks and sustains below $216.
On the contrary, if the price rebounds off the current level, the SOL/USDT pair could rise to the downtrend line. This level may act as a stiff resistance but if bulls clear this hurdle, the pair may retest the all-time high at $259.90.
ADA/USDT
Cardano (ADA) turned down sharply on Nov. 16 and broke below the critical support at $1.87 but a minor positive is that bulls did not allow the price to close below it. The long tail on the candlestick indicates that buyers are attempting to defend the support.
The bulls are attempting to push the price back above $1.87 today but higher levels may attract selling. Both moving…
cointelegraph.com