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Bitcoin (Bitcoin) Is witnessing fierce competition near US$58,000, but this has not stopped some altcoins from reaching record highs. This shows that traders are paying attention to the basic development of individual tokens.
One of the recent The main altcoin performing best is Avalanche (AVAX), which surged more than 120% in November. Before Deloitte announced plans to build its disaster relief platform on the Avalanche blockchain, the token caught the attention of traders.
El Salvador’s President Nayib Bukele announced another step in the growth of cryptocurrency adoption Launch Bitcoin City, It will be powered by geothermal energy, initially funded by Bitcoin bonds worth $1 billion.
Can low-level strong purchases push Bitcoin above $60,000, and will altcoins participate in the recovery? Let’s study the charts of the top 5 cryptocurrencies that can attract traders’ attention in the short term.
Bitcoin/USD
Bitcoin reversed from USD 55,600 on November 19, but the recovery faced resistance at the 50-day simple moving average (USD 60,187). The moving average is on the verge of a bearish crossover, and the relative strength index (RSI) is in the negative zone, indicating that the bears are returning strongly.
If the price falls from current levels, the bears will try to extend the correction by pulling the BTC/USDT pair below $55,600. If this happens, the next stop may be a strong support zone of US$52,500 to US$50,000.
If the price rebounds from this area, the bulls will try to push the currency pair above the moving average and downtrend line. Such a move will indicate that the correction phase may be over. The bulls will then try to push the price above the all-time high of $69,000.
Or, a break below the psychological support level of $50,000 may exacerbate the sell-off because traders are eager to exit. Then the currency pair may fall to 45,000 USD and then to 40,000 USD.
The 4-hour chart shows that the bears have pulled the price below the strong support of $58,000, but they are unable to take advantage of this advantage. The bulls bought on dips and pushed the price back above the 20 exponential moving average.
If the price stays above US$58,000, the currency pair may rebound to the downtrend line. A break and close above this resistance level may indicate that the bulls have the upper hand. The currency pair may then rebound to $62,000 and then rise to $67,000.
Conversely, if the price falls from the current level and breaks below $55,600, it indicates that a deeper correction may begin.
AVAX / USDT
The avalanche is in a strong upward trend and has been hitting new highs in the past few days. Today the bulls pushed the price to $146.18 above the 200% Fibonacci extension level, but the long wick on the candlestick that day showed profit bookings at a higher level.
The rising 20-day moving average (96) indicates that the bulls are in a dominant position, but the RSI close to 80 indicates that the recent rally may be overheated. This may lead to a slight correction or consolidation in the next few days.
If the price falls from the current level, the 110 USD and 20-day moving average may become a strong support. A sharp rebound from either level will indicate that the bulls see the decline as a buying opportunity. The currency pair may then move towards the 261.8% Fibonacci extension level of 175.58 USD.
Contrary to this assumption, if the price drops below the 20-day moving average, it indicates that traders are eager to exit. This may pull the AVAX/USDT pair to 81 US dollars.
The currency pair has fallen back from $147, indicating a radical take-off at a higher level. The bears will now try to pull the price to the 20-EMA, which may become a strong support.
If the price rebounds from the 20-EMA, it means buying on dips. The bulls will then try to resume the upward trend by pushing the currency pair above the $147 level.
Contrary to this assumption, if the price falls below the 20-EMA, selling may accelerate, and the currency pair may fall to $110. Such a move would indicate that the bulls may be losing control. After that, the currency pair may fall to 50-SMA.
MATIC/USDT
Polygon (Matic) The past few days have been trading in an ascending channel mode. The bulls pushed the price above the channel resistance line on October 28th and 29th, but failed to sustain the breakout. This may prompt short-term traders to sell.
The bears successfully held the resistance line again on November 3. This begins the downward journey towards the channel trend line. The downward sloping 20-day EMA ($1.69) and the RSI just below the midpoint indicate that the seller’s advantage is small.
If the price falls from the current level, the MATIC/USDT pair may fall to the trend line. The bulls are expected to actively defend this level. If the price rebounds from the trend line and rises above the 20-day moving average, it indicates that selling pressure may be reducing. This may mark the beginning of a journey north of the resistance line.
Contrary to this assumption, if the bears push the price below the trend line, it may lead to a drop to the psychological support level of $1.
The 4-hour chart shows that the bulls are trying to make a relief rebound from the strong support area of ??$1.50 to $1.40. The 20-EMA started to rise and the RSI was close to the center, indicating that selling pressure may be decreasing.
If the bulls push the price above $1.70, the currency pair may rise to $1.80. Breaking and closing above this level will indicate strength. Then the currency pair may start to rise to $2.15. On the downside, if the bears pull the price below $1.40, the selling may accelerate.
related: See red? FUD that!This is something you should buy last week instead of Bitcoin
EGLD/USDT
From November 16th to 18th, the bears tried to pull Elrond (EGLD) below the breakout level of $303.03, but the bulls bought the bargain hunting seen from the long tail of the candlestick. Strong buying on November 19 pushed the price to the upper resistance at $338.70.
This resumed the uptrend, and the EGLD/USDT currency pair is close to its pattern target of $427. The sharp rebound has pushed the RSI into the overbought zone, indicating that a slight consolidation or correction may be coming.
The first support level for the downside is the breakout level of $338.70, followed by the 20-day moving average ($325). If the price rebounds from any level, it indicates that traders continue to buy on dips. The bulls will then try to resume the uptrend with the next target of $500.
If the price falls and breaks below the breakthrough level of $303, this positive view will be invalidated.
The 4-hour chart shows that the bears are trying to prevent the rise to $400, but the bulls are not in a relaxed mood. Continued buying at a higher level pushed the currency pair to break through the psychological barrier. The rising 20-EMA and the RSI in the overbought zone show that the bulls are firmly in the dominance.
The first important downside level is $380. If the bears pull the price below this support level, the currency pair may fall to the 20-EMA. A strong rebound from this support level may keep the uptrend unchanged, but a break below this support level will indicate that the bullish momentum may be weakening.
MANA/USDT
Decentraland (MANA) fell back to $4.35 from the 78.6% Fibonacci retracement level on November 20. This indicates that traders may sell on rallies.
The MANA/USDT currency pair may now fall to the direct support level of US$3.50. If this level gives way, the correction may deepen to the 20-day moving average (US$3.11). If the price rebounds from any support level, it indicates that market sentiment is still optimistic and traders buy on dips.
The bulls will then try to push the price up to $4.36. Breaking and closing above this resistance level may open the door for a rebound to $4.94. If prices continue to fall and break below the 20-day moving average, this positive view will be invalidated.
The currency pair has been rising in an ascending channel mode. The failure of the bulls to push the price above the resistance line may prompt traders to sell, pulling the price below the 20-EMA.
The two moving averages flattened out and the RSI fell near the midpoint, indicating that the bullish momentum may be weakening. The currency pair may now fall to the channel trend line where buying is possible.
If the price rebounds from the trend line, the currency pair may continue to rise within the channel. The buyer will then try to push the price to the resistance line. The bullish momentum may rebound on the breakout and close above the channel.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risk, and you should conduct your own research when making a decision.
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