Bitcoin (BTC) is still below $ 60,000, suggesting higher levels are attracting sales from traders.
The S&P 500 index hit an all-time high today when it was announced that US President Joe Biden had left Jerome Powell for a second term as chairman of the Federal Reserve. The news also brought the US dollar currency index (DXY) to its highest level since July 2020.
Usually a sharp surge in DXY is negatively correlated to Bitcoin, and the same thing can be seen this November. While DXY rose around 2.3% in November, Bitcoin fell around 5.5% over the same period.
Independent market analyst TechDev says that Bitcoin’s performance in 2021 follows closely the price movement of 2017, but with a lag of 5-8 days. If the correlation persists, Bitcoin’s highly anticipated high is likely.
Could the current drop be the last drop before the uptrend resumes, or is the drop the start of a bigger correction? Let’s check out the top 10 cryptocurrency charts to find out.
BTC / USDT
Bitcoin’s rebound from $ 55,600 on November 19 hit its 50-day simple moving average ($ 60,350) on November 20, but the bulls have been unable to break that barrier. This shows that the bears are trying to turn the 50-day SMA into resistance.
The moving averages are on the verge of a bearish crossover and the relative strength index (RSI) is in negative territory, suggesting that the path of least resistance is on the downside.
If the price turns down and breaks below $ 55,600, it indicates the beginning of a deeper correction towards the $ 52,500 to $ 50,000 support area.
This negative view will be invalidated if the price rises above the current level and breaks above the downtrend line. Such a move would mean that the correction might be over.
After that, the BTC / USDT pair could begin its march north towards the overhead resistance area at $ 67,000 to $ 69,000.
ETH / USDT
Ether (ETH) ‘s relief rally from the November 18 low of $ 3,956.44 rebounded above the 20-day exponential moving average ($ 4,364) on November 20, but the bulls were unable to sustain higher levels. November the bears pulled the price back below the 20-day EMA.
The ETH / USDT pair fell to the 50-day SMA ($ 4,240) today, but the candle’s long tail shows that the bulls are defending that support. If buyers push the price above $ 4,451, the pair can rebound to the 61.80% Fibonacci retracement level at $ 4,519.78 and then to the 78.60% retracement at $ 4,672.93.
Conversely, the bears will attempt to move the pair below the 50-day SMA again if the price drops from current levels. If successful, the pair can drop to $ 3,956.44. A break and close below this level completes the head-and-shoulders pattern. The pair may then drop to $ 3,400 and eventually hit the pattern target at $ 3,047.
BNB / USDT
Binance Coin (BNB) rebounded from the 50-day SMA ($ 526) on November 19, but the bulls failed to extend the recovery rally above the 61.8% Fibonacci retracement level at $ 602.40 la.
The bears pulled the price below the 20-day EMA ($ 585) today. If the price stays below the 20-day EMA, the bears will take another step to bring the BNB / USDT pair below the 50-day SMA. If successful, the pair can drop to $ 485.40.
Conversely, if the price rises from current levels and breaks above $ 605.20 it will show that the bulls are back in the game. The pair can then recover to the overhead resistance range of $ 659.50 to $ 669.30.
The flat 20-day EMA and the RSI near the middle do not give the bulls or bears a clear advantage.
SOL / USDT
Solana (SOL) rebounded from the 50-day SMA ($ 198) after hitting a strong hurdle on the downtrendline on Nov. 21, suggesting the bears will continue to sell during the rebound.
The price movement of the past few days has formed a symmetrical triangle pattern showing a balance between supply and demand. This equilibrium will shift in favor of the bulls on a breakout and close above the resistance line of the triangle. After that, the SOL / USDT pair could retest the all-time high of $ 259.90.
Alternatively, if the price stays below the 20-day EMA, the pair may fall to the support line of the triangle. The bears will have to push the price below this support to get the upper hand. After that, the pair can drop to $ 153.
ADA / USDT
Cardano (ADA) rose above the break at $ 1.87 on November 20, but the bulls were unable to push the price above the 20-day EMA ($ 1.95). This shows that sentiment is still negative and traders are selling to rebound towards the 20-day EMA.
The price fell back below $ 1.87 on November 21, and the bears will now seek to push the ADA / USDT pair below $ 1.70. If this succeeds, sales can rise and the pair can fall to $ 1.50.
Contrary to this assumption, if the price rises from current levels and breaks above the 20-day EMA, the pair can rebound to the downtrendline. A break and close above this resistance would indicate that the correction may be over.
XRP / USDT
XRP rebounded from strong support at $ 1 on November 19, but the recovery attempt faded at $ 1.10, showing that demand is drying up at higher levels.
The falling 20-day EMA ($ 1.12) and the negative RSI show that the bears have the upper hand. If the price drops below $ 1, selling can gain momentum and the XRP / USDT pair can drop to $ 0.85.
Conversely, if the price rebounds from current levels and rises above the moving averages, it indicates that the bulls are actively defending the USD 1 support. The pair could then begin their march north toward $ 1.24.
DOT / USDT
Polkadot (DOT) bounced off the uptrendline on November 18, but the relief rally is facing resistance at the 50-day SMA ($ 42.96). This shows that the bears are trying to turn the 50-day SMA into resistance.
The moving averages are about to complete the bearish crossover and the RSI is in negative territory, showing that the bears are in control. If the price breaks below the uptrend line and closes, the DOT / USDT pair can drop to $ 32 and then to $ 29.
Contrary to this assumption, this suggests that the bulls will continue to buy on the downside as the price rises from current levels and breaks above the moving averages. After that, the pair can climb to the overhead resistance range of $ 47.83 to $ 49.78.
Related: Institutional managers bought the decline as crypto funds see weekly inflows of $ 154 million
AVAX / USDT
The long wick on the Avalanche (AVAX) candlestick bar on November 21st shows that traders posted gains near the 200% Fibonacci expansion at $ 146.18. Lower levels have attracted buying and the bulls are attempting to resume the uptrend today.
Buyers need to push and hold the price above $ 147 to signal the continuation of the uptrend. After that, the AVAX / USDT pair can rebound to the 261.8% Fibonacci expansion at $ 175.58.
While the 20-day EMA ($ 100) shows the bulls have the upper hand, the RSI above 81 suggests the rally may overheat in the short term.
If the price drops from $ 147, the short-term traders could break out. That could push the price down to $ 123. A break below this support could signal the start of a lower correction to USD 110 and then the 20-day EMA.
DOGE / USDT
Dogecoin (DOGE) rebounded from strong support at $ 0.21 on November 19 to hit $ 0.23. This weak rally shows that demand is drying up at higher levels.
The falling 20-day EMA ($ 0.24) and the negative RSI show that the bears have the upper hand. If sellers pull the price below $ 0.21, the DOGE / USDT pair may dip to the critical support at $ 0.19.
Contrary to this assumption, if the price rebounds from current levels, the pair may rebound towards the downtrend line. The bulls need to push and hold the pair above this resistance to signal the correction may be over.
SHIB / USDT
SHIBA INU (SHIB) moved down from the 20-day EMA (0.00049) on Nov 20, showing sentiment has turned negative and traders are selling rallies to the upper resistance levels.
The bears are trying to bring the price below the 50-day SMA ($ 0.00043) and the 78.6% Fibonacci retracement level at $ 0.000040. If they do, the SHIB / USDT pair may plunge to $ 0.000027 and complete a 100% retracement.
The falling 20-day EMA and the negative RSI show that the bears have the upper hand. Contrary to this assumption, the bulls will seek to push the pair above the 20-day EMA as price rebounds from current levels and rally towards $ 0.0000057.
The views and opinions expressed are those of the author only and do not necessarily reflect those of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.
Market data provided by HitBTC Exchange.