Bitcoin (BTC) and most of the altcoins sold out on December 4th with massive liquidations in the derivatives market. The data shows more than $ 2.5 billion in liquidations over a 24 hour period.
During the recent decline, Ether (ETH) continued to outperform Bitcoin. While Bitcoin’s market dominance has fallen below 40%, Ether continues to gain ground and its market dominance has risen to over 21%.
Some analysts believe that Bitcoin’s recent decline could result in a longer period of consolidation. Decentrader co-founder filbfilb expects Bitcoin to consolidate by the first quarter of next year. Lex Moskovski, CEO of Moskovski Capital, also expects a “slowdown in growth”.
Can Bitcoin bottom out in the next few days? Let’s analyze the charts of the top 5 cryptocurrencies that could lead the market rally.
BTC technical analysis
Bitcoin received strong support from the 100-day SMA ($ 54,496) in late September, making it a major support for the bulls to defend.
BTC / USDT daily chart | Source: TradingView
The bears had other plans, however. They pulled the price below the 100-day SMA on December 3rd and triggered a stop-loss order from some investors. This sparked panic selling and the BTC / USDT pair fell to $ 42,000 on December 4th. The bulls actively bought dips during this decline as the long tail of the bar shows. Candle of the Day.
The falling 20-day EMA ($ 56,219) and Relative Strength Index (RSI) near the oversold zone show that the bears have the upper hand. If the pair continues to move lower, the next stop could be strong support at $ 40,000.
Conversely, if the price rises from current levels, the pair may rebound to the 100-day SMA, which could act as a strong hurdle. A breakout and a close above this level are the first signs of a stronger rebound.
BTC / USDT 4-hour chart | Source: TradingView
The pair was trading within a parallel descending channel. The bears pulled the price below the channel’s support line, but the bulls bought when it did, pushing the pair back into the channel.
If the bulls are successful in defending the support line, the pair can rebound to the EMA of 20, which is likely to act as strong resistance again. If the price falls off the 20th EMA, it signals that sentiment remains negative and increases the possibility of a breakdown below the channel.
If so, the pair may fall into the strong support area at $ 42,000 to $ 40,000. Conversely, a breakout and close above the 20 EMA is the first sign that sellers are losing control. After that, the pair can climb to the resistance line of the channel.
Technical analysis of the ETH
Ether (ETH) has been trading between $ 3,900 and $ 4,868 for the past few days. Although the bears pulled the price below the range on December 4th, they were unable to hold the lower levels. The bulls have actively bought the dip as can be seen from the long tail of the intraday bar.
ETH / USDT Daily Chart | Source: TradingView
If the bulls hold the price above $ 3,900, the ETH / USDT pair can rally to the 20-day EMA ($ 4,326). A break above and close above this level could pave the way for a rally to the all-time high of $ 4,868. The bulls need to break this barrier to signal a rally on the uptrend.
Contrary to this assumption, if the price drops from current levels, the bears will take one more step to decline and keep the pair below $ 3,900. If successful, the pair may fall to the strong support at USD 3,400.
ETH / USDT 4-hour chart | Source: TradingView
The ETH rebound is facing strong resistance near the 61.8% fib retracement level at $ 4,215. The 20 EMA is sloping down and the RSI is in negative territory, giving the bears a slight advantage.
If the price breaks the $ 4,000 support, the pair may fall to $ 3,823.98. A break and a close below this level could trigger a retest at $ 3,503.
Conversely, if the bulls push the price above the moving average, the pair can rise to $ 4,654 and then challenge the all-time high.
MATIC technical analysis
Polygon (MATIC) has been trading on an ascending channel for the past few days. The bulls pushed price above the channel resistance line on December 3rd but failed to hold higher levels. This could have resulted in profit-taking on December 4th.
MATIC / USDT daily chart | Source: TradingView
The MATIC / USDT pair fell to the 100-day SMA (1.54) but buyers got in and bought the dip. However, the long wick on the bar today shows that bears are selling near the resistance line.
The 20-day EMA ($ 1.85) is sloping up and the RSI is in positive territory, signaling an advantage for buyers. If the current rebound continues, the bulls will try again to push the price above the resistance line.
Alternatively, a break and a close below the 50-day SMA ($ 1.76) could push the price down to the 100-day SMA.
MATIC / USDT 4-hour chart | Source: TradingView
The pair’s rebound is set to sell at the 78.6% fib retracement level at $ 2.21. If the bears pull the price below the EMA of 20, the pair can drop to the SMA 50 and then the SMA 100. Breaking below this support could open the door for a decline to $ 1.54.
Conversely, if the price rebounds from the 20 EMA, the bulls will try again to push the pair above $ 2.21. If they do that, the pair can bounce back to $ 2.40. The bulls will have to cross the overhead barrier to propel the pair to the all-time high of $ 2.70.
Technical analysis ALGO
Algorand (ALGO) fell below the critical support at USD 1.50 on December 4th, but the bulls bought on the steep decline as shown by the long tail of the candlestick. Now the bulls will try to push the price above the moving averages.
Daily ALGO / USDT Chart | Source: TradingView
If so, the ALGO / USDT pair can rally to the resistance line. This is an important level that the bears must defend as breaking it could invalidate the descending triangle pattern. After that, the pair can rebound to $ 2.36 and then to $ 2.55.
Contrary to this assumption, if the price is deviating from the moving averages, it shows that the bears are selling on the rebound. After that, the pair can retest the support at $ 1.50. A break and a close below this level complete a bearish setup. After that, the pair can drop to $ 0.80.
ALGO / USDT 4-hour chart | Source: TradingView
The pair has been trading from $ 1.60 to $ 2 for a while. The bears pushed the price below $ 1.60 but failed to hold the lower levels. This suggests strong buying on a decline. The bulls have pushed the price back into the range.
If buyers push the price above the moving averages, the pair can rebound to the overhead resistance at $ 2, but if the price deviates from the moving averages, the bears will try again and the pair will fall below $ 1.60 keep . If this succeeds, the price will likely retest $ 1.32.
EGLD. Technical Analysis
Elrond’s (EGLD) strong rally from $ 287 on November 17th to an all-time high of $ 544.25 on November 31st pushed the RSI deep into the overbought zone. Vertical rallies are usually followed by a waterfall, and that has happened in the past few days.
Daily EGLD / USDT chart | Source: TradingView
The EGLD / USDT pair fell from its all-time high and fell to $ 224.62 on December 4th, completing a 100% retracement of the recent rally.
One small positive is that the bulls were actively buying the December 4th slump, as evidenced by the long tail of the intraday bar. Buyers are now trying to defend the uptrend line and push the price back above the 50-day SMA ($ 324).
If they do, the pair can rebound to the 20-day EMA ($ 364) where the bears can create another strong resistance. If the bulls break this barrier, the pair can rise to $ 425.
Conversely, if the price turns down and closes below the 100-day SMA ($ 271), the pair can extend the decline to $ 200.
EGLD / USDT 4-hour chart | Source: TradingView
Strong sales brought the price below the uptrend line, but the bears were unable to sustain the lower levels. This shows a large accumulation when decreasing. The pair quickly climbed back above the uptrendline but the bulls failed to break the 20 EMA barrier.
This shows that sentiment is still negative and traders are selling on rallies. If the price holds below the uptrend line, the next stop may be at $ 224.62.
Conversely, this shows that if the price rises from current levels and breaks above the 20 EMA, the bears may lose their hold. After that, the pair may begin to rebound and potentially see the SMA at 50. A break and close above this resistance could pave the way for a rally into the $ 425 to $ 440 resistance area.
You can see the coin prices Here.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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.