Bitcoin (BTC) and Ether (ETH) are testing psychologically important support levels at $ 60,000 and $ 4,000 respectively. Both of these levels are critical to keeping the uptrend intact in the short term.
While the fall may frighten profit traders, Bitcoin whales seem to view 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 last purchase, the whale’s ownership increased by 635 Bitcoin in November, according to journalist Colin Wu.
However, not everything is bullish news for Bitcoin and cryptocurrencies. The U.S. dollar has risen to a sixteen-month high due to expectations that rising inflation may force the U.S. Federal Reserve to raise tariffs and accelerate the decline of its $ 120 billion monthly purchase program.
LMAX Group currency strategist Joel Kruger also said a strengthening dollar might hit risky assets hardest and that could be the reason for the recent withdrawal in Bitcoin and altcoins.
Will bulls defend the strong support levels and stage a recovery or aggressive selling will pull crypto prices below their strong support levels? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin fell below the 20-day exponential moving average ($ 62,607) and the support line of the growing wedge pattern on November 16th. This is the first sign that bulls may be losing their grip.
Buyers are trying to defend the 50-day simple moving average ($ 59,122) but the shallow rebound indicates a lack of urgency among the bulls to buy at current levels.
If the price falls below the current level or the 20-day EMA, the bears will try to bring the BTC / USDT pair below $ 57,820. If they succeed, the sale could gain momentum and the pair may drop to $ 52,500.
Contrary to this assumption, if the price rises from the current level and rises above the 20-day EMA, it will indicate a strong accumulation at lower levels. The pair could then retest the upper zone at $ 67,000 to $ 69,000.
ETH / USDT
Ether broke below the uptrend channel on November 15 and that was followed by a further sell-off on November 16, which pulled the price below the 20-day EMA ($ 4,439). This was the first closure under the 20-day EMA since October 1st.
The long tail on today’s candlestick suggests bulls are trying to defend the 50-day SMA ($ 4,033). The 20-day EMA began to decline and the relative strength index (RSI) fell in the negative zone, indicating that bears are returning.
If the price falls below the current level or the 20-day EMA, it will suggest that sentiment has become negative and traders are selling in rallies. The ETH / USDT pair could then break the 50-day SMA and fall 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 upper resistance at $ 669.30 on November 15 and plunged below the 20-day EMA ($ 591) on November 16. The sale continued today and the bears pulled the price close to the 50% Fibonacci level. is $ 552.30.
The long tail on today’s candlestick suggests a strong buy at lower levels. Buyers will now try to push the price above the 20-day EMA. If they succeed in doing so, the BNB / USDT pair will again try to rise to $ 669.30.
Alternatively, if the price falls below the 20-day EMA, it will suggest that the sentiment has become negative and traders are selling in rallies. The pair could then extend its decline to the 50-day SMA ($ 509).
SOL / USDT
Solana (SOL) plunged below the rising channel and the 20-day EMA ($ 224) on November 16, indicating that the bulls may be losing their hold. Buyers are trying to defend the breakout level at $ 216 but any rebound is likely to face selling at higher levels.
The 20-day EMA flattened and the RSI fell to the midpoint, indicating a balance between supply and demand. This balance will change in favor of the bears if the price breaks and stays below $ 216.
Conversely, if the price bounces from the current level, the SOL / USDT pair could rise to the down-trend line. This level can serve as a stiff resistance, but if bulls release this obstacle, the pair may retest the all-time high at $ 259.90.
ADA / USDT
Cardano (ADA) fell sharply on November 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 trying to defend the support.
The bulls are trying to push the price above $ 1.87 today but higher levels may attract a sell-off. Both moving averages began to decline and the RSI dipped into the negative zone, indicating that bears are dominating.
If the price falls below the current level or the 20-day EMA, the bears will try to bring the ADA / USDT pair below $ 1.75. If they manage to do that, the pair could fall to $ 1.50. The first sign of force will be a rupture and closure over the downward line.
XRP / USDT
The long wick on the November 15 XRP candlestick shows that bears were selling in rallies to the upper resistance at $ 1.24. The sale accelerated on November 16 and bears pulled the price back below the moving averages.
If bears keep the price below the moving averages, the XRP / USDT pair could challenge the strong support at $ 1. The 20-day EMA ($ 1.15) has started to decline and the RSI has dipped into the negative territory, indicating that bears have slightly rando.
A break and close below $ 1 could pull the price to $ 0.85. This level may again serve as a strong support but if it cracks, the next stop could be $ 0.70.
Conversely, if the price breaks above the moving averages, the pair could rise to $ 1.24. The bulls will have to press and keep the price above this level to signal a return.
DOT / USDT
Polkadot’s (DOT) failure to climb back above the 20-day EMA ($ 45.99) may have prompted a profit-taking of short-term bulls and a sell-off of the aggressive bears. This intensified sales and pulled the price below the 50-day SMA ($ 41.88) on November 16th.
The DOT / USDT pair is trying to bounce back from the uptrend line, indicating that bulls continue to buy on dips. If bulls maintain the price above the 50-day SMA, the pair could rise to the 20-day EMA.
This level is likely to once again function as a barrier. If the price falls below the 20-day EMA, the bears will make one more attempt to pull the pair below the uptrend line and extend the decline to $ 32 and then to $ 26.
The bulls will have to push and keep the price above the 20-day EMA to indicate that the bears may lose their hold.
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DOG / USDT
After trading between the moving averages over the last few days, Dogecoin (DOGE) made a decisive move lower on November 16th. This indicates that supply exceeds demand.
The Bulls are trying to defend the support at $ 0.22. They will now try to push the price above the downtrend line. If they can pull it out, it will indicate that the bears may be losing their grip. The DOGE / USDT pair could then rise to $ 0.30.
However, the 20-day EMA ($ 0.25) has started to decline and the RSI is in the negative territory, indicating that bears have the upper hand. If the price declines from the current level or the downtrend line, the probability of a break below $ 0.22 increases. The pair may then fall to the critical support at $ 0.19.
SHIB / USDT
The bulls tried to keep SHIBA INU (SHIB) above the 20-day EMA ($ 0.000052) on November 14 and 15 but the long wick on the candlestick shows selling at higher levels.
The sale continued on November 16, pulling the price below the 20-day EMA. A minor positive is that bulls are trying to defend the critical support at $ 0.000043. If buyers press and maintain the price above the 20-day EMA, the SHIB / USDT pair could try to rise to the resistance at $ 0.000065.
Conversely, if the price declines from the current level or from the 20-day EMA, it will indicate that traders are selling at every small increase. This will increase the possibility of a break below $ 0.000043 and the 50-day SMA ($ 0.000040). If that happens, the pair may complete a 100% reboot and fall to $ 0.000027.
AVAX / USDT
Avalanche (AVAX) is on the rise. The bears tried to slow the upward move and lower the price below the key support level at $ 81 on November 16, but the bulls did not give up. The long tail on the candlestick of the day shows that buyers defended the 20-day EMA ($ 85.20) with vigor.
Purchasing resumed today and the bulls pushed the price above the upper resistance at $ 101.82. If buyers keep the price above the psychologically critical level at $ 100, the AVAX / USDT pair could rise to $ 115.14.
The rising 20-day EMA and the RSI in the overbought territory indicate that bulls are dominating. The bears will have to pull the price back below the break level at $ 81 to signal a possible change in the near-term trend.
The opinions and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and business move involves risk. You have to do your own research when you make a decision.
Market data are provided by HitBTC exchange.