Bitcoin (BTC) and most of the major altcoins were sold alongside global equity markets and crude oil November 26. Markets were shaken by the news of a new coronavirus variant detected in South Africa that worries scientists due to its large number of mutations in the spike protein.
The sharp drop has resulted in cryptocurrency cross-liquidations of more than $ 750 million over the 24-hour period, but funding rates on exchanges remain high. This suggests that the sale may not be over yet.
The monthly Bitcoin close for November is highly likely not to hit analyst PlanB’s worst-case scenario of $ 98,000. This will be the first time the model has accurately predicted month-end price levels for August, September, and October. However, the creator of the stock-to-flow model believes that the $ 100,000 target for Bitcoin in this halving cycle still holds.
Is the current dip a mouthwatering Black Friday deal or the start of a short-term bearish phase? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
The bulls pushed Bitcoin above the breakout level at $ 58,000 on Nov.25, but failed to break through the barrier at the 20-day exponential moving average ($ 59,510). This may have attracted the reserve of profits on the part of the traders.
The sell picked up momentum after breaking below $ 55,317 today and the next stop could be psychological support at $ 50,000.
If the price bounces off this level, buyers will try to push the price above the 20-day EMA. If they are successful, it will indicate that the selling pressure may be easing.
Alternatively, if the next bounce turns back down from the 20-day EMA, it will indicate that sentiment has turned negative and traders are selling on rallies. That will increase the chance of a breakout below $ 50,000.
If that happens, the BTC / USDT pair could witness a panic sell that can bring the price down to $ 40,000.
ETH / USDT
Ether (ETH) broke above the 20-day EMA ($ 4,336) on Nov 25, but the bullish move turned out to be a bullish trap as the price fell sharply today and fell to the neck of the developing head and shoulders (H&S). ). Pattern.
The bulls aggressively defend the neckline. If the price bounces off the neckline, buyers will attempt to remove the overhead resistance at $ 4,551. That could clear the way for a retest of the all-time high of $ 4,868.
On the contrary, a close below the neckline will complete the bearish pattern. That could intensify selling and the ETH / USDT pair could decline to the $ 3,600 to $ 3,400 support zone. If this zone also cracks, the next stop could be the target at $ 3,047.
BNB / USDT
Binance Coin (BNB) spiked above the overhead resistance at $ 605.20 on November 25, but the bulls were unable to overcome the stiff hurdle at $ 669.30. This indicates that the bears are vigorously defending this level.
Failure to exceed $ 669.30 may have caused short-term traders to reserve profits. That has caused the price to drop back below the 20-day EMA ($ 590) today. The bears will now attempt to sink the BNB / USDT pair to the 50-day simple moving average ($ 539).
A breakout and close below the 50-day SMA can indicate a change in trend. Selling could accelerate on a break below $ 510. The pair could then drop to $ 450.
The bulls will have to push and hold the price above the upper resistance zone of $ 669.30 to $ 691.80 to signal the resumption of the uptrend.
SOL / USDT
Solana (SOL) rallied from the 50-day SMA ($ 202) on November 25, but rejected the 20-day EMA ($ 216). This suggests a shift in sentiment from buying on dips to selling on rallies.
The selling continued today and the bears are attempting to sink the price below the support line of the symmetrical triangle. If they keep the price below the triangle, the SOL / USDT pair could decline to $ 153 and then $ 140.
The falling 20-day EMA and the Relative Strength Index (RSI) below 43 indicate that bears have the upper hand. This negative view will be invalidated if the price rises from the current level and breaks above the resistance line of the triangle.
ADA / USDT
Cardano (ADA) formed a Doji candlestick pattern within the day on November 25, indicating indecision between the bulls and the bears. This uncertainty was resolved to the downside today with a break below $ 1.58.
The ADA / USDT pair has strong support at $ 1.50. Although the falling moving averages indicate an advantage for bears, the RSI in the oversold territory suggests that the sell may have been overdone in the near term.
The bulls may attempt a relief rally that will likely face strong selling at the 20-day EMA ($ 1.85). If the price falls from this level, the bears will make one more attempt to sink the pair below $ 1.50. If they are successful, the pair could drop to $ 1. The first sign of strength will be a breakout and a close above the 20-day EMA.
XRP / USDT
Although the bulls defended the $ 1 support for the past few days, they were unable to push XRP above the 20-day EMA ($ 1.08). This suggests a lack of demand at higher levels.
The sell accelerated today and the bears pushed the price down below the psychological support at $ 1. The XRP / USDT pair could now fall to the strong support at $ 0.85. If the price bounces off this level, the bulls will try to push the price above $ 1.
If they manage to do that, the pair could try to gradually move towards the overhead resistance at $ 1.24. Conversely, if the price drops below $ 1 and breaks below $ 0.85, the pair could drop to $ 0.70.
DOT / USDT
Polkadot (DOT) bounced off the uptrend line on November 25, but the bulls were unable to sustain the higher levels. The sale intensified today and the price fell below $ 37.53, completing a bearish pattern for H&S.
The DOT / USDT pair could now drop to $ 32 and then $ 26, where the bulls can try to stop the decline. On the upside, the breakout level at 38.70 is an important level to watch out for.
If the price falls from this level, it will suggest that sentiment is still negative and traders are selling in rallies.
Conversely, if the bulls push and hold the price above $ 38.70, it will suggest strong demand at lower levels. A breakout and close above $ 43.56 could tip the lead in favor of the bulls.
Related: BAT price hits new high after 30% daily rally as basic attention token fuels downtrend for cryptocurrencies
DOGE / USDT
Dogecoin (DOGE) attempted a relief rally on Nov 25, but the long wick in the day’s candle shows that the bears were sold near the downtrend line.
The sell picked up momentum today and the DOGE / USDT pair sank below the immediate support at $ 0.21 and even broke below the strong support at $ 0.19. The bulls are currently trying to defend the $ 0.19 level.
If the price rebounds from the current level, the bears will again pose a stiff challenge at $ 0.21. If this level turns to resistance, the probability of a breakout below $ 0.19 increases. If that happens, the pair may drop to the critical support at $ 0.15. The first sign of strength will be a breakout and close above the 20-day EMA ($ 0.23).
AVAX / USDT
Avalanche (AVAX) recovered from the Fibonacci retracement level of 38.2% to $ 112.63 on November 25, but the long wick on the candle shows that traders sold in rallies.
The AVAX / USDT pair turned down today and has fallen to the 20-day EMA ($ 105). This is an important level to watch out for because, during uptrends, traders buy on dips from the 20-day EMA. If the price rebounds from the current level, the bulls will try to push the price to $ 130.
Conversely, if the bears drop the price below the 20-day EMA and the 50% retracement level at $ 102.01, the pair could fall to the 61.8% Fibonacci retracement level at 91, 39 dollars. The deeper the drop, the longer it will take for the next stage of the upward movement to begin.
SHIB / USDT
SHIBA INU (SHIB) tumbled below the strong support at $ 0.000040 on November 24. The bulls tried to push the price above the level and catch the aggressive bears on November 25, but they could not get past the 20-day hurdle. EMA ($ 0.000046).
This indicates that traders are selling in rallies near upper resistance levels. The bears have pushed the price back below the $ 0.000040 level today, increasing the possibility that the correction will resume.
The SHIB / USDT pair could now complete a 100% retracement and drop to $ 0.000027. This bearish view will be invalidated if the price rises from the current level and breaks above the 20-day EMA. The pair could then rise to $ 0.000052.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.
Market data is provided by HitBTC exchange.