Bitcoin (BTC) is experiencing fierce controversy near the $ 58,000 mark, but that hasn’t stopped a select number of altcoins from making new all-time highs. This shows that traders are watching the fundamental developments of individual coins.
One of the top performing altcoins is Avalanche (AVAX), which rose more than 120% in November. The coin caught traders’ attention after auditing firm Deloitte announced its plans.
In a further move that shows the increasing adoption of cryptocurrencies, the President of El Salvador, Nayib Bukele, announced the launch of Bitcoin City, which runs on geothermal energy and initially funded Bitcoin bonds worth $ 1 billion.
Strong lower-level purchases could push Bitcoin above $ 60,000 and will altcoins join the recovery? Let’s take a look at the charts of the top 5 cryptocurrencies that may be attracting traders’ attention in the short term.
BTC / USDT
Bitcoin reversed direction from $ 55,600 on November 19, but the rebound is facing resistance at the 50-day simple moving average ($ 60,187). The moving averages are on the verge of a bearish crossover and the Relative Strength Index (RSI) is in negative territory, suggesting the bears are making a strong comeback.
If the price drops down from current levels, the bears will attempt to extend the correction by pulling the BTC / USDT pair below USD 55,600. When that happens, the next stop could be the strong support area at $ 52,500 to $ 50,000.
If the price rebounds from this zone, the bulls will seek to push the pair above the moving averages and the downtrend line. Such a move would mean that the correction phase may be over. The bulls will then attempt to push the price above the all-time high of $ 69,000.
Alternatively, a break in psychological support at $ 50,000 could intensify sales if traders rush out of the market. After that, the pair can drop to $ 45,000 and then to $ 40,000.
The 4-hour chart shows that the bears pulled price below strong support at $ 58,000, but they cannot extend that advantage. The bulls bought the decline and pushed the price back above the exponential moving average of 20.
If the price holds above $ 58,000, the pair can rally to the downtrend line. A break and a close on this resistance could show that the bulls have the upper hand. The pair can then rebound to $ 62,000 and then to $ 67,000.
Conversely, this signals the likely start of a deeper correction if the price drops down from current levels and falls below USD 55,600.
AVAX / USDT
Avalanche is in a strong upward trend and has been continuously reaching new highs for a few days. The bulls pushed price above the 200% Fibonacci expansion at $ 146.18 today, but the long wick on the daily candle shows profit-taking at higher levels.
The bullish 20-day EMA (96) shows that the bulls are in charge, but the RSI near 80 suggests that the rally may overheat in the short term. This could lead to a slight correction or consolidation over the next few days.
If the price breaks down from current $ 110 levels, the 20-day EMA could act as strong support. A strong rebound from either level will show that the bulls see the decline as a buying opportunity. The pair can then move towards the 261.8% Fibonacci expansion at $ 175.58.
Contrary to this assumption, if the price drops below the 20-day EMA, it shows that traders are in a hurry to get out. That can pull the AVAX / USDT pair to $ 81.
The pair went down from the $ 147 level and showed aggressive profit booking at higher levels. The bears will now try to pull the price towards the 20 EMA which is likely to act as strong support.
If the price recovers from the 20 EMA it will be showing strong buying on the downside. The bulls will then attempt to continue the uptrend by pushing the pair above $ 147.
Contrary to this assumption, if the price drops below the EMA of 20, selling may accelerate and the pair may drop to $ 110. Such a move would suggest that the bulls may be losing their footing. After that, the pair may drop to the 50 SMA.
MATIC / USDT
Polygon (MATIC) has been trading within an ascending channel pattern for the past few days. The bulls pushed price above the channel resistance line on October 28-29, but were unable to sustain the breakout. This may have resulted in sales from short term dealers.
The bears successfully defended the resistance line again on November 3rd. This started a downward move towards the channel’s trendline. The falling 20-day EMA ($ 1.69) and the RSI just below the middle point to a slight upside for sellers.
If the price drops from current levels, the MATIC / USDT pair may fall on the trendline. The bulls are expected to aggressively defend this level. If price bounces off the trendline and rises above the 20-day EMA, it suggests that selling pressures may ease. That could signal the beginning of the journey north towards the resistance line.
If, contrary to this assumption, the bears push price below the trendline, it could result in a drop in psychological support at $ 1.
The 4 hour chart shows that the bulls are trying to recover from the strong support area at $ 1.50 to $ 1.40. The 20th EMA has started to rise and the RSI is near the middle, suggesting that selling pressures may ease.
If the bulls push the price above $ 1.70, the pair can rise to $ 1.80. A break and close above this level indicates strength. After that, the pair can move higher towards $ 2.15. On the downside, if the bears push the price below $ 1.40, selling could accelerate.
Related: See red? FUD that! Here’s what to buy instead of bitcoin last week
EGLD / USDT
The bears attempted to pull Elrond (EGLD) below the breakout at $ 303.03 from November 16-18, but the bulls bought the break as shown by the long tail of the candlestick bar. Strong buying on November 19th pushed price above $ 338.70 overhead resistance.
This continues the uptrend and the EGLD / USDT pair has neared its pattern target at $ 427. The strong rebound has pushed the RSI deep into overbought territory, suggesting that some consolidation or a minor correction may be imminent.
Initial support to the downside is a breakout at USD 338.70 and then the 20-day EMA (USD 325). If price rebounds from either level, it will indicate traders continue to decline. The bulls will then try to continue the uptrend with the next target at $ 500.
If the price goes down below the $ 303 breakout, this positive view will be invalidated.
The 4-hour chart shows that the bears managed to halt the bullish momentum at $ 400, but the bulls are in no mood to let up. Persistent buying at higher levels pushed the pair over the psychological barrier. The 20 EMA is rising and the RSI in the overbought area shows the bulls are firmly in the driver’s seat.
The first major level to watch on the downside is $ 380. If the bears pull the price below this support, the pair may drop to the 20 EMA. A strong rebound from this support could keep the uptrend intact, but a break below it would suggest that bullish momentum may be wearing off.
MANA / USDT
Decentraland (MANA) is down from the 78.6% Fibonacci retracement level on November 20th to $ 4.35. This suggests that traders might sell on a rebound.
The MANA / USDT pair may now fall to the immediate support at $ 3.50 and if that level drops a lower correction to the 20-day EMA ($ 3.11) is possible. If price bounces off either support, it suggests that sentiment remains positive and traders are buying on the downside.
The bulls will then try to push the price down to $ 4.36. A break and a close above this resistance could open the door for a rally to $ 4.94. This positive view will be invalid if the price continues to decline and fall below the 20-day EMA.
The pair rose within an ascending channel pattern. The bulls’ failure to push the price above the resistance line may have resulted in traders selling, pulling the price below the 20 EMA.
Both moving averages are flat and the RSI has fallen near the middle, suggesting that upside momentum may be easing. The pair may now fall onto the channel’s trendline where buying may emerge.
If the price rebounds from the trendline, the pair may continue to move higher within the channel. Buyers will then try to push the price up to the resistance level. Bullish momentum can start on a breakout and close above the channel.
The views and opinions expressed are those of the author only and do not necessarily reflect those of Cointelegraph. Every step of investing and trading is risky, you should do your own research when making your decision.