The current weakness in BTC and major altcoins shows that investor sentiment remains negative and that bears
The current weakness in BTC and major altcoins shows that investor sentiment remains negative and that bears are active at higher levels.
The FTX crisis kept Bitcoin’s (BTC) price under pressure in November, but data from Bitstamp exchange shows institutional investors may have viewed the dip as a buying opportunity. The exchange told Cointelegraph that compared to October, its revenue from institutions increased by 34% in November.
In another positive sign, Goldman Sachs executive Mathew McDermott told Reuters that the bank was doing some due diligence on crypto companies since they were “priced more sensibly” after the FTX crash.
ARK Invest said in the latest edition of its monthly “The Bitcoin Monthly” newsletter, that the FTX implosion “could be the most damaging event in crypto history,” but added that decentralized blockchains were “as strong as ever.”
Could lower levels attract buyers in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to spot the levels where buyers may step in.
BTC/USDT
After trading near the 20-day exponential moving average ($16,966) for the past few days, Bitcoin is threatening to dip below the immediate support at $16,787.
If that happens, the short-term advantage could tilt in favor of the bears and the BTC/USDT pair may drop to $16,000. Such a move will suggest that the pair could remain stuck between $15,476 and $17,622 for a few more days. The longer the time spent inside the range, the stronger will be the breakout from it.
On the upside, bulls will have to push and sustain the price above the 50-day simple moving average ($18,122) to gain the upper hand. The pair could then pick up momentum and rally to $20,000.
ETH/USDT
After trading between the moving averages for the past few days, Ether (ETH) broke below the 20-day EMA ($1,250) on Dec. 7. This suggests that the bears have overpowered the bulls.
If the price sustains below the 20-day EMA, the ETH/USDT pair could dive to $1,151 and then to the important support at $1,073.
On the contrary, if the price turns up quickly and climbs back above the 20-day EMA, it will suggest strong buying on dips. That could increase the likelihood of a break above the 50-day SMA ($1,331). Above this level, there is no significant resistance until the pair reaches the downtrend line of the descending channel.
BNB/USDT
The bulls tried to push BNB (BNB) above the overhead resistance at $300 on Dec. 5 but the bears held their ground. The sellers strengthened their position on Dec. 7 by pulling the price below the immediate support at $285.
If the price sustains below $285, the BNB/USDT pair could slump to $275. This level may act as a minor support but if it breaks down, the selling could pick up and the pair may plunge to the crucial support at $250.
If bulls want to prevent the fall, they will have to push and sustain the price above $300. That could trap the aggressive bears on the wrong foot and push the price toward the overhead resistance at $338. This level may again witness a tough battle between the bulls and the bears.
XRP/USDT
The bears successfully defended the 20-day EMA ($0.39) in the past few days and pulled XRP (XRP) below the uptrend line on Dec. 7. This invalidates the developing ascending triangle pattern.
Buyers will try to salvage the situation by defending the strong support at $0.37. If the price rebounds off this level and rises above the 20-day EMA, the XRP/USDT pair may consolidate between $0.37 and $0.41 for some time. A break and close above $0.41 will suggest the start of a new up-move.
The bears are likely to have other plans. They will try to break the support at $0.37 and pull the price to $0.34. That could keep the pair range-bound between $0.30 and $0.41 for a few more days.
ADA/USDT
Cardano (ADA) failed to sustain above the 20-day EMA ($0.32) on Dec. 5 which may have tempted short-term buyers to close their longs and the bears to establish fresh short positions.
The sellers will try to pull the price below the crucial support at $0.29 but they may face strong resistance from the bulls because if the level gives way, the ADA/USDT pair could signal the resumption of the downtrend.
Although the trend is down, the relative strength index (RSI) is maintaining its bullish divergence. This suggests that lower levels may attract buyers. The first sign of sustainable recovery could be on a break and close above $0.33. The pair could then rise to the downtrend line.
DOGE/USDT
The long wick on Dogecoin’s (DOGE) Dec. 5 candlestick shows that bears are defending the 50% Fibonacci retracement level at $0.11.
The DOGE/USDT pair…
cointelegraph.com