Bitcoin’s dominance (BTC) has plummeted from around 48% on October 20 to 42.3% on November 7, as the entire crypto market cap continues its journey north. This shows that capital flows have shifted from Bitcoin to Altcoins.
Ki Young Ju, CEO of CryptoQuant speak Bitcoin whales sold, but the move didn’t break the strong support at $ 60,000. He also pointed out that Bitcoin balances on the exchanges continue to decline, suggesting a strong appetite from buyers.
The majority of market participants remain optimistic about Bitcoin and, according to a survey conducted by PlanB, are forecasting a rally to USD 288,000 by early 2022.
The founder of Real Vision, Raoul Pal, also predicted a bullish picture for the cryptocurrency in an interview on November 3rd. Pal predicts the possibility of Ethereum 2.0 rolling out and the possibility of an Ether ETF getting the green light in the first half of 2022 to attract institutional investors and spark a big rally.
Against this bullish backdrop, let’s analyze the charts of the top 5 cryptocurrencies that remain in focus and could do well in the short term.
BTC technical analysis
Bitcoin broke out above a bullish flag pattern on November 2, but buyers failed to take advantage of the move and pushed the price above the resistance range of $ 64.854 to $ 67,000. This shows that the bears have not given up and are trying to stop the upward momentum.
BTC / USDT daily chart | Source: TradingView
One positive sign, however, is that the bulls are aggressively defending the 20-day EMA ($ 60,794). Buyers will take another step to push the price above the overhead resistance area.
If they can pull the price above it, momentum could pick up and the BTC / USDT pair is likely to rebound towards the target of the pattern at $ 89,476.
This bullish view will be invalidated if the price breaks and returns within the flag. After that, the pair may plunge to the 50-day SMA ($ 54,883). The zone between the 50-day SMA and $ 52,920 is likely to attract strong buying from the bulls.
BTC / USDT 4-hour chart | Source: TradingView
The 4-hour chart shows the pair is trading between $ 59,500 and $ 63,732. The flat moving averages and the relative strength index (RSI) just above the midpoint show a balance between supply and demand.
If price rebounds from the moving averages, the bulls will again attempt to push the price above the $ 63,732.39 to $ 64,270 resistance area. If they do that, the pair could test the all-time high again.
Conversely, a break below the moving average can pull the pair into the strong support zone at $ 59,500 to $ 58,000. The bears will prevail if this zone is breached. After that, the pair can correct to $ 55,267.61.
Technical DOT analysis
Polkadot (DOT) surged and broke the $ 49.78 resistance on Nov. 1. The RSI broke the downtrendline, invalidating bearish divergence. This indicates the continuation of the upward trend.
DOT / USDT daily chart | Source: TradingView
The bears have tried to push price back below the November 6th breakout, but the long tail of the bar shows that the bulls are buying down. The rising moving averages and the RSI near the overbought zone suggest that the path of least resistance is up.
If the bulls push the price above $ 55.09, the DOT / USDT pair can rise to $ 63.08. The bears may have other plans as they will attempt to bring the price below the breakout at $ 49.78. Such a move would indicate a lack of buyers at higher levels.
A break and close below the 20-day EMA ($ 46.82) will be the first sign that the bulls are losing their hold. After that, the pair may drop to the 50-day SMA ($ 38.54).
DOT / USDT 4-hour chart | Source: TradingView
The 4 hour chart shows that the pair is rising within an ascending channel. Although the cops were driving the course across the canal, they could not gain any advantage. This shows that the bears are strongly defending this area of resistance.
The pair has bounced back from the centerline of the channel and the bulls will try again to break the overhead barrier. If they are successful, the pair could gain momentum.
Alternatively, if the price drops from current levels or the overhead resistance and falls below the midline, the pair may fall to the support line. A rebound from this line keeps the uptrend intact, but a break below it signals a possible turnaround.
Technical analysis by LUNA
Terra (LUNA) broke and closed above the USD 49.54 resistance on November 4th. The bears attempted to pull the price back below the breakout on November 5th and 6th but were unable to hold the level. This shows that the bulls are buying on the downside.
Daily LUNA / USDT chart | Source: TradingView
If the bulls push the price above USD 53.18, the LUNA / USDT pair can rebound to the resistance line of the wedge where the bears are expected to create tough resistance. The uptrend could rise if the bulls push the price above the wedge.
Alternatively, if the price breaks down from current levels or the overhead resistance, the pair could fall to the support line of the wedge. A break and close below this support would signal a possible turnaround. After that, the pair can drop to $ 35.
LUNA / USDT 4-hour chart | Source: TradingView
The fact that the bulls are pushing price above the triangle’s resistance line shows that they have overwhelmed the bears. The sellers attempted to pull the price back into the triangle area but the bulls vigorously defended the breakout level.
Both moving averages on the 4-hour chart are sloping up and the RSI is in positive territory, suggesting an advantage for buyers. If the bulls push the price above $ 53.18, the pair can rally to the target of the pattern at $ 62.59.
Technical analysis by AVAX
After trading near the $ 79.80 resistance level for the past three days, Avalanche (AVAX) broke the resistance. This shows the possibility of the uptrend continuing.
AVAX / USDT daily chart | Source: TradingView
The moving averages are sloping up and the RSI is in the overbought territory, showing that the bulls are in control. If the price holds above $ 79.80, the AVAX / USDT pair may rise to $ 93.04 and then try to challenge the psychological level at $ 100.
Contrary to this assumption, this suggests that the market has rejected higher levels as the price drops from current levels and falls below $ 79.80. After that, the pair may drop to the 20-day EMA ($ 69.51).
AVAX / USDT 4-hour chart | Source: TradingView
The 4-hour chart shows that on a breakout, price completed a round-bottom pattern and closed above $ 79.80. If the bulls hold above $ 79.80, the pair can begin the march north with the model target at $ 108.56.
The first major level to watch on the downside is $ 79.80. A rebound from this level shows that the bulls are actively buying on a decline and this increases the likelihood of the uptrend continuing.
Conversely, a break below $ 79.80 can drag the pair down to $ 72, and if that support is also lost, this shows that the bears are back in the game.
Technical analysis EGLD
Elrond (EGLD) broke all-time high of $ 303.03 on Nov 3rd, which is a positive sign. The bears tried unsuccessfully on November 5th and 6th to pull price back below the breakout levels.
Daily EGLD / USDT chart | Source: TradingView
This shows that the bulls are trying to defend the breakout level and convert it into support. A breakthrough and a close above $ 329 signal the continuation of the uptrend. The rising 20-day EMA ($ 281) and the RSI near the overbought zone suggest that the path of least resistance is up.
Contrary to this assumption, the next stop of the 20-day EMA could be if the EGLD / USDT pair turns down from current levels and breaks below $ 303.03. A strong rebound from this support will keep the uptrend intact, but a break below it could open the door for a deeper correction towards the 50-day SMA ($ 249).
EGLD / USDT 4-hour chart | Source: TradingView
The 4-hour chart shows the formation of an ascending triangle pattern. It closes on a breakout and closes above $ 303.03. This positive setup has a target of $ 427, but the rally may not go straight as the bears at $ 355 are likely to be very challenging.
A break below the 20 EMA will be the first sign of weakness. This can drag the price into a breakout at $ 303, which is important bull support to be defended. If that support is lost, the pair can drop to the 50 SMA and then the triangle’s trend line.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Cointelegraph