Bitcoin (BTC) has witnessed a tough fight near the $ 58,000 mark but that has not stopped selected altcoins from hitting new all-time highs. It shows that traders are seeing fundamental developments in individual currencies.
One of the most recent major altcoins is Avalanche (AVAX), which rose more than 120% in November. The currency caught the attention of traders heading towards the announcement of accounting firm Deloitte, which plans to build its disaster relief platform on the Avalanche blockchain.
In another step that reflects the growing crypto adoption, El Salvador’s President Naib Buckel has announced the launch of Bitcoin City, which will be powered by geothermal energy and will be initially financed by $ 1 billion worth of bitcoin bonds.
Could a strong buy at a lower level raise Bitcoin above $ 60,000 and will Altcoins participate in the recovery? Let’s study the charts of the top 5 cryptocurrencies that may attract traders in the short term.
BTC / USDT
Bitcoin reversed from 19 55,600 on November 19 but the recovery has met 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, indicating that the bears are making a strong comeback.
If prices fall below current levels, the bears will try to extend the correction by pulling the BTC / USDT pair below $ 55,600. If so, the next stop could be the strong support zone of $ 52,500 to $ 50,000.
If the price returns from this zone, the bulls will try to push the pair above the moving average and the downtrend line. Such a move would indicate that the corrective phase may be over. The bulls will then try to run above the all-time high of $ 69,000.
Alternatively, a break below the psychological support at $ 50,000 could intensify sales as traders rush to exit. The pair could then drop to 45,000 and later to $ 40,000.
The 4-hour chart shows that the bears pulled the price to $ 58,000 below strong support but they failed to make this advantage. The bulls have bought deep and pushed the price above the 20-exponential moving average.
If the price stays above $ 58,000, the pair could move into a downtrend line. A break above and beyond this resistance may indicate that the bull’s hand is on top. The pair could then rally for $ 62,000 and later for $ 67,000.
Conversely, if the price falls below its current level and falls below $ 55,600, it will signal the possible start of a deep correction.
AVAX / USDT
Snowfall is on a strong uptrend and has been steadily reaching new heights over the past few days. Bulls today pushed the price to% 146.18 above the 200% Fibonacci extension level but the long candlestick of the day shows high level profit-booking.
The rising 20-day EMA (96) indicates that bulls are in command but an RSI near 80 indicates that the rally may be overheated in the near term. This may result in a minor correction or consolidation in the next few days.
If the price falls below the current level, the $ 110 and then the 20-day EMA could serve as a strong support. A sharp return to both levels would suggest that bulls see the dip as an opportunity to buy. The pair could then move to the 261.8% Fibonacci extension level at 5 175.58.
Contrary to this assumption, if the price moves below the 20-day EMA, it would suggest that traders are rushing to exit. This could pull the AVAX / USDT pair to 81.
The pair dropped to 147, indicating a high level of aggressive profit booking. The Bears will now try to pull the price to the 20-EMA, which will probably serve as a strong support.
If the price rebounds off the 20-EMA, it will indicate a strong buy in dips. The bulls will then try to resume the uptrend by pushing the pair above $ 147.
Contrary to this assumption, if the price goes below the 20-EMA, the sell-off could accelerate and the pair could fall to $ 110. Such a move would indicate that the bulls were losing their grip. The pair could then move down to the 50-SMA.
MATIC / USDT
Polygon (MATIC) has been trading in an ascending channel pattern for the past few days. On 28 and 29 October the bulls pushed the price above the channel resistance line but failed to hold the breakout. This can lead to sales from short-term traders.
The bears have again successfully defended the line of defense. November 3. It started a downward journey towards the channel’s trendline. The lower slope indicates a small advantage for RSI sellers just below the 20-day EMA (1.69) and the midpoint.
If the price falls below the current level, the MATIC / USDT pair may fall to the trendline. Bulls are expected to defend this level aggressively. If the price returns from the trendline and rises above the 20-day EMA, this may indicate that selling pressure may ease. This could signal the start of a northward journey towards the resistance line.
Contrary to this assumption, if bear prices fall below the trendline, this could lead to a drop in psychological support to 1.
The 4-hour chart shows the bulls trying to rally a relief from the strong support zone at $ 1.50 to $ 1.40. The 20-EMA has started to move and is near the RSI center, indicating that selling pressure may ease.
If the price of the bull is above $ 1.70, then the price of this pair could be $ 1.80. Above this level will indicate a break and stop power. The pair could then start its up-move towards 2.15. On the downside, sales could accelerate if the bear pulls prices below 40 1.40.
Related: Looking red? FUD THAT! Here’s what you should have bought last week instead of Bitcoin
EGLD / USDT
The Bears tried to pull the ELLD (EGLD) below the breakout level of $ 303.03 from November 16 to 18 but the bulls bought dips as seen from the long tail of the candle. On November 19 strong buying pushed the price above the overhead resistance to $ 338.70.
It resumed the uptrend and the EGLD / USDT pair reached প 427, close to its pattern target. The sharp rally pushed the RSI deeper into the overbought zone, suggesting that a small consolidation or correction could be near the corner.
The first support on the downside is the breakout level of 338.70 and then the 20-day EMA ($ 325). If prices return to any level, it would suggest that traders continue to shop at dips. The Bulls will try to resume the uptrend with the next target $ 500.
This positive outlook will be nullified if the price falls below ব্র 303 below the breakout level.
The 4-hour chart shows that the bears tried to stop the up-movement at $ 400 but the bulls were not in the mood to be flexible. Constant purchases at high levels have pushed the pair above emotional barriers. Rising 20-EMA and RSI in additional buying areas indicate that bulls are firmly in the driver’s seat.
The first important level to look at the bad side is $ 380 If the Bears could pull prices below this support, the pair could fall to the 20-EMA. Closing this support could keep a strong rebound uptrend intact but a break below it would suggest that bullish momentum could weaken.
Mana / USDT
Decentland (MANA) declined the 20 4.35 from the 78.6% Fibonacci retracement level on November 20th. This indicates that traders may sell at the rally.
The MANA / USDT pair could now drop to immediate support at $ 3.50 and if this level gives way, the correction could deepen to the 20-day EMA ($ 3.11). If the price closes any support, it will suggest that sentiment will remain positive and traders are buying on dips.
The bulls will then try to push the price to $ 4.36. A break above this resistance and closing could open the door for assembly at $ 4.94. If prices continue to fall and move below the 20-day EMA, this positive outlook will be nullified.
This pair is growing in an upward channel pattern. The bull’s failure to push the price above the resistance line could lead to a sell-off from traders, dragging the price below the 20-EMA.
Both moving averages have flattened and the RSI has moved closer to the midpoint, suggesting that the bullish momentum may be weakening. The pair can now go down the channel’s trendline where shopping can take place.
If the price rebounds from the trendline, the pair may continue its up-movement within the channel. Buyers will then try to push the price to the resistance line. Bullish momentum may rise at breaks and close above the channel.
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