The recovery in BTC and altcoins fizzled out fast, suggesting that investors continue to maintain a risk-off stance to all cryptocurrencies.
The collapse of FTX cryptocurrency exchange has created a liquidity crisis in the crypto space, which could extend the crypto winter through the end of 2023, according to a research report by Coinbase.
According to analysts, the FTX implosion could keep the institutional investors at bay because they are even more likely to tread cautiously for some time.
The crisis has negatively impacted several crypto-focused companies who have assets stuck on FTX following the company’s bankruptcy filing on Nov. 11. Investors also fear the contagion could spread, causing further damage to the cryptocurrency ecosystem.
Although several investors were rattled by the collapse of FTX, billionaire venture capitalist and serial blockchain investor Tim Draper remains bullish on Bitcoin (BTC). In a Nov.15 interview with Cointelegraph, Draper doubled down on his $250,000 target for Bitcoin in 2023.
However, investors should take the price projection with a pinch of salt because it is unlikely that Bitcoin will start a roaring bull market in the near future.
What are the key support and resistance levels to watch out for on Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin broke and closed below the June low of $17,622 on Nov. 9. This marked the resumption of the downtrend. Although bulls tried to stage a strong recovery on Nov. 10, their efforts met with heavy selling above $17,622. This suggests that the bears have flipped the level into resistance.
The 20-day exponential moving average ($18,271) has turned down and the relative strength index (RSI) is in the negative territory. This suggests that the bears have the upper hand.
If the price sustains below $17,622, it will increase the prospect of a break below $15,588, If that happens, the BTC/USDT pair could extend its decline to $12,200.
Contrary to this assumption, if the price turns up and breaks above the 20-day EMA, it will suggest strong demand at lower levels. The pair could then challenge the psychological level at $20,000.
ETH/USDT
Ether (ETH) has been declining inside a descending channel pattern for the past several weeks. The failure to push the price above the channel on Nov. 4 may have led to profit-booking by the short-term traders.
The buyers aggressively bought the dip to the support line on Nov. 10 but the relief rally fizzled out near the 50-day simple moving average ($1,372). This suggests that bears are selling at higher levels.
The bears will again strive to sink the price below the channel. If that happens, the selling could intensify and the ETH/USDT pair could drop to $1,000. To gain the upper hand, buyers will have to push the price above the moving averages. The pair could then rise to the downtrend line.
BNB/USDT
BNB (BNB) soared to $398 on Nov. 8 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick. The selling continued on Nov. 9 and pulled the price near the strong support at $258.
The bulls purchased the drop on Nov. 10 but they could not thrust the price above the 20-day EMA ($295). This suggests that the sentiment turned negative and bears were selling the relief rallies to the 20-day EMA.
The bears will again try to break the support at $258 and if they manage to do that, the BNB/USDT pair could drop to $239 and later to $216. This negative view will be invalidated in the near term if bulls push and sustain the price above $313.
XRP/USDT
XRP (XRP) re-entered the $0.41 to $0.30 range on Nov. 8, indicating a lack of demand at higher levels. The selling continued on Nov. 9 and the price dropped to $0.32.
Buyers purchased the dip and tried to push the price back above $0.41 but the bears did not relent. This suggests that the bears have flipped the $0.41 level into resistance. The bears will again try to pull the pair to the critical support at $0.30.
This is an important level for the bulls to defend because a break and close below it could signal the resumption of the downtrend. On the upside, the first sign of strength will be a break and close above $0.41. The XRP/USDT pair could then rise to the 50-day SMA ($0.45).
ADA/USDT
Cardano (ADA) is in a strong downtrend. Although both moving averages are sloping down, the RSI is attempting to form a bullish divergence, indicating that the selling pressure may be reducing.
The first sign of strength will be a break and close above the downtrend line. Such a move will suggest a potential trend change. The ADA/USDT pair could then attempt a rally to…
cointelegraph.com