Traders hate uncertainty; hence, the settlement between Binance, Changpeng “CZ” Zhao and the United States Department of Justice is likely to be viewed as a positive for the cryptocurrency space. Analysts largely remained positive on the deal, but a few sounded cautious due to the Securities and Exchange Commission’s pending lawsuit against Binance.
Bitcoin (BTC) and several major altcoins fell sharply on Nov. 21 following the Binance news but are finding support at lower levels. This suggests that traders stepped in after the initial knee-jerk reaction, and are buying at lower levels. After the initial bounce, the bulls are likely to head into stiff opposition from the bears.
Buying on dips and selling on rallies results in a range-bound action as both the bulls and the bears battle it out for supremacy. Generally, a consolidation near the 52-week high is considered a bullish sign, but traders should wait for an upside confirmation before jumping in to buy.
Will Bitcoin and select altcoins remain stuck inside a range for the next few days? What are the important levels to watch out for?
Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
The bears pulled Bitcoin below the 20-day exponential moving average ($35,948) on Nov. 21 but could not sustain the lower levels. Strong buying by the bulls pushed the price back above the 20-day EMA on Nov. 22.
The BTC/USDT pair has been consolidating between $34,800 and $38,000 for several days. This indicates a balance between supply and demand. A minor positive in favor of the bulls is that the 20-day EMA is sloping up, and the relative strength index (RSI) remains in the positive zone.
If bulls propel the price above $38,000, the pair could start the next leg of the uptrend to $40,000. This level may act as a formidable resistance, but if cleared, the pair may soar to $48,000.
On the contrary, if the price turns down and breaks below $34,800, it will suggest that the traders are rushing to the exit. That may open the doors for a further decline to $32,400.
Ether price analysis
Ether (ETH) turned down from the resistance line on Nov. 20 and slipped below the 20-day EMA ($1,957) on Nov. 21.
However, the bulls had other plans. They aggressively purchased the drop below the 20-day EMA and are again trying to overcome the barrier at the resistance line. This remains a pivotal level to keep an eye on because a break above it could start a rally to $2,137 and then to $2,200.
On the downside, $1,880 is a necessary support to watch out for. If this level fails to hold, the ETH/USDT pair may start a deeper correction to the 50-day simple moving average ($1,791). That could delay the start of the next leg of the up-move.
BNB price analysis
BNB (BNB) witnessed a wild ride on Nov. 21, with an intraday high of $272 and a low of $224. This indicates uncertainty about the next directional move between the bulls and the bears.
A minor positive is that the bulls did not allow the price to break below the major support at $223. That started a recovery on Nov. 22, and the bulls are trying to push the price back above the 20-day EMA ($240). If they succeed, it will signal that the BNB/USDT pair may consolidate between $223 and $265 for some time.
Conversely, if the price fails to sustain above the 20-day EMA, it will suggest that bears are selling on rallies. That could again pull the price toward $223. A break below this support could extend the fall to $203.
XRP price analysis
XRP (XRP) turned down from the 20-day EMA ($0.61) on Nov. 20 and fell to the 50-day SMA ($0.57) on Nov. 21.
The bulls are expected to defend the support at $0.56 because a failure to do so may result in a drop toward $0.46. The slightly downsloping 20-day EMA and the RSI just below the midpoint indicate a minor advantage to the bears.
If the price breaks above the 20-day EMA, it will suggest strong buying at lower levels. That will signal a possible range-bound action between $0.56 and $0.74 for a few days. The bulls will be back in the driver’s seat after the XRP/USDT pair rises above $0.74.
Solana price analysis
Solana (SOL) climbed above the critical overhead resistance of $0.59 on Nov. 19, but the bulls could not build upon this strength. The bears pulled the price back below $0.59 on Nov. 20.
The SOL/USDT pair snapped back from the 20-day EMA ($51) on Nov. 22, indicating that the bulls are vigorously protecting the level. Buyers will again try to overcome the obstacle at $59 and challenge the local high at $68.
On the contrary, if the price once again turns down from $59, it will suggest that bears remain active at higher levels. Sellers will then again attempt to sink the price below the vital support at $48. If this…
cointelegraph.com