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Bitcoin (BTC) could not sustain its gains and succumbed to profit-booking as the U.S. trading markets started the week, possibly indicating that bears have not given up yet.
PlanB, creator of the popular BTC stock-to-flow model, does not seem to be perturbed by the dull price action of the past few days. The analyst believes that his worst-case scenario projection of $98,000 by Dec. 1 and $135,000 by Jan. 1 remains in place.
However, long-term holders do not seem to be waiting for higher levels and have started booking profits, according to analyst William Clemente who cited Glassnode data. According to Clemente, “bull market distribution has begun.”
Not everyone is bullish on Bitcoin. Billionaire fund manager Kyle Bass told Investor’s Podcast Network that making money from Bitcoin will be “really difficult” from the current levels because of the intense regulation by the United States government.
Could lower levels attract buying by the bulls or will traders continue to book profits? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin bounced off the 20-day exponential moving average (EMA) ($63,232) on Nov. 12, but the bears are posing a stiff challenge at the overhead resistance zone at $67,000 to $69,000.
The relative strength index (RSI) has formed a negative divergence indicating that the bullish momentum may be weakening. The BTC/USDT pair has formed a bearish rising wedge pattern, which will complete on a break and close below the support line.
If that happens, it will suggest that traders are booking profits aggressively and that may result in a slide to the 50-day simple moving average (SMA) ($58,396). The pattern target of the rising wedge pattern is $53,770.
Contrary to this assumption, if the price turns up from the current level and breaks above $67,000, the next stop could be $69,000. A break and close above the resistance line of the wedge could open the doors for a possible rally to $75,000.
ETH/USDT
Ether (ETH) dipped below the support line of the ascending channel on Feb. 14 but the long tail on the day’s candlestick suggests strong buying at lower levels. The bulls attempted to resume the uptrend today but the long wick on the candlestick indicates selling near $4,800.
The bears will now make one more attempt to sink and sustain the price below the support line of the channel and the 20-day EMA ($4,491). If they succeed, it will suggest a change in the short-term trend. The ETH/USDT pair could then drop to the 50-day SMA ($3,980).
Conversely, if the price once again rebounds off the support line, it will suggest that bulls are aggressively defending this level. The buyers will then try to overcome the hurdle at $4,868 and push the pair to the psychological mark at $5,000. The bullish momentum could pick up further if bulls thrust the price above the channel.
BNB/USDT
Binance Coin (BNB) is attempting to break above the Nov. 7 high at $669.30 but the bears are in no mood to relent. They are defending the overhead resistance aggressively.
The BNB/USDT pair formed a Doji candlestick pattern on Nov. 14, signaling indecision among the bulls and the bears. If this uncertainty resolves to the downside, the pair could slide to the 20-day EMA ($593).
The bears will have to pull the price below $573 to deepen the correction to the 61.8% Fibonacci retracement level at $524.70.
On the other hand, if the price turns up from the current level or the 20-day EMA, it will indicate that sentiment remains positive and traders are buying on dips. A break above $669.30 could result in a retest of the all-time high at $691.80. The bullish momentum could pick up if buyers push and sustain the pair above this level.
SOL/USDT
Solana (SOL) rebounded off the support line of the ascending channel on Nov. 13, indicating that bulls continue to buy on dips. The bulls will now try to push the price above the overhead resistance at $248 and challenge the all-time high at $259.90.
The upsloping moving averages and the RSI in the positive territory indicate that the path of least resistance is to the upside. If bulls push the price above the all-time high, the SOL/USDT pair could rally to the resistance line of the ascending channel.
This positive view will invalidate if the price turns down from the current level and breaks below the support line of the channel. That could clear the path for a possible decline to the 50-day SMA ($189).
ADA/USDT
Cardano (ADA) has been trading below the 20-day EMA ($2.06) for the past three days but the bears have not been able to capitalize on this and pull the price to the strong support at $1.87.
The flattish 20-day EMA and the RSI just below the midpoint suggest a range-bound action in the near term.
If bulls propel the price above the downtrend line, it will suggest that the bears may be losing their grip. The ADA/USDT pair could then rise to the overhead resistance at $2.47 where the bears may again mount a stiff resistance.
Alternatively, if the price turns down from the current level, the pair could drop to $1.87. The bears will have to pull the price below this support to signal the start of a downtrend.
XRP/USDT
Ripple (XRP) has been sustaining above the 20-day EMA ($1.17) for the past few days but the bulls are struggling to push the price above the overhead resistance at $1.24. The long wick on Nov. 15’s candlestick suggests that bears are selling at higher levels.
The failure to push the price above $1.24 may prompt profit-booking from short-term traders. That may pull the price to the 50-day SMA ($1.10). If this support also cracks, the bears may smell an opportunity and try to sink the XRP/USDT pair below $1.
On the contrary, if the price rebounds off the current level and breaks above $1.24, it will indicate that buyers have overpowered the bears. That could clear the path for a possible rally to $1.41. The bulls will have to clear this hurdle to gain the upper hand.
DOT/USDT
Polkadot (DOT) broke below the 20-day EMA ($47.15) on Nov. 10 but the bears could not build upon this advantage and sink the price to the 50-day SMA ($41.33). This suggests that traders are buying at lower levels.
The DOT/USDT pair has been clinging to the 20-day EMA for the past few days, increasing the prospects of a break above it. If that happens, the pair could rise to $49.78 and thereafter challenge the all-time high at $55.09.
Conversely, if the price turns down from the current level and breaks below $44.04, the pair could slide to the 50-day SMA. The bears will have to pull the price below the strong support at $40 to gain the upper hand.
Related: Litecoin grapples with ‘double top’ risks after LTC price rallies 37% in November
DOGE/USDT
Dogecoin (DOGE) has been trading between the moving averages for the past few days. The bulls pushed the price above the 20-day EMA ($0.26) on Nov. 14 but the long wick on the candlestick suggests that bears are aggressively defending the downtrend line.
The 20-day EMA has flattened out and the RSI is near the center, suggesting a status of equilibrium between the bulls and the bears.
A breakout and close above the downtrend line will be the first sign that the selling pressure may be reducing. The DOGE/USDT pair could then rise to $0.30 and later to the overhead resistance at $0.34.
On the contrary, the selling could intensify if bears sink the price below the 50-day SMA. The pair could then drop to $0.22 and next to the strong support at $0.19.
SHIB/USDT
SHIBA INU (SHIB) has been oscillating above and below the 20-day EMA ($0.000053) for the past few days, indicating a lack of clear direction.
The flat 20-day EMA and the RSI near the midpoint suggest a balance between supply and demand. If buyers push the price above $0.000057, the SHIB/USDT pair could attempt to rally to the overhead resistance at $0.000065.
On the other hand, a break below $0.000048 could open the doors for a possible decline to the strong support at $0.000043. The next trending move could start on a break above $0.000065 or on a break below $0.000043.
LUNA/USDT
Terra’s LUNA token rebounded off the 20-day EMA ($48.23) on Nov. 13, indicating that bulls continue to buy on dips to this support. The rising moving averages and the RSI in the positive zone indicate that buyers have the upper hand.
The LUNA/USDT pair formed an inside-day candlestick pattern on Nov. 14, suggesting indecision among the bulls and the bears.
If bulls drive the price above $53.43, the pair could retest the all-time high at $54.95 and thereafter rally to the resistance line of the wedge. The bullish momentum could pick up if buyers thrust the price above the resistance line.
This bullish view will invalidate if the price turns down and breaks below the support line of the wedge. That may pull the price to the 50-day SMA ($43.26).
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
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