Bitcoin (BTC) and Ether (ETH) have turned down from their respective overhead resistance levels, suggesting that bears continue to sell on rallies.
New research in Australia suggests that the Ethereum Improvement Proposal (EIP) 1559 upgrade has turned Ether into a better store of value than Bitcoin. The report said the annual rate of increase in Ether’s supply since EIP-1559 is 0.98% compared to an increase of 1.99% in Bitcoin’s supply.
Demand for Ether has been on the rise following the surging popularity of nonfungible tokens, decentralized finance and Metaverse-related altcoins. Several analysts remain bullish on Ether and anticipate it to rally to the range between $6,000 and $10,000.
On-chain analytics firm Glassnode said that high open interest in the derivatives market and long-term holders selling could extend Bitcoin’s decline. The “open interest leverage in options and futures at or new all-time high†could result in a shakeout.
Could Bitcoin’s correction pull the entire crypto sector lower? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
The bulls could not sustain Bitcoin’s price above the 20-day exponential moving average ($57,905) on Nov. 30 and Dec. 1. This suggests that bears are defending the 20-day EMA with vigor.
The bears will now attempt to sink and sustain the price below the 100-day simple moving average ($54,485) and the Nov. 28 intraday low at $53,256.64. If they succeed, the BTC/USDT pair could plummet to the psychologically critical support at $50,000.
This is an important support to keep an eye on because if it breaks down, the selling could pick up momentum and the pair could drop to $40,000. The downsloping 20-day EMA and the relative strength index (RSI) in the negative zone suggest the path of least resistance is to the downside.
Contrary to this assumption, if the price rebounds off the 100-day SMA and rises above the 20-day EMA, it will indicate accumulation at lower levels. The pair could then rise to the 50-day SMA ($60,750).
ETH/USDT
Ether turned down from $4,778.75 on Dec. 1 indicating that bears are aggressively defending the all-time high at $4,868. The price has pulled back to the 50-day SMA ($4,319) today.
If the price rebounds off the current level, it will suggest that the sentiment remains positive and traders are buying on dips. The bulls will then make one more attempt to propel the price above $4,868.
If they succeed, the ETH/USDT pair could resume its uptrend, with the next target objective at $5,796. Conversely, if the price breaks below the 50-day SMA, it will indicate that traders may be rushing to the exit. The pair could then decline to the strong support at $3,900.
BNB/USDT
The bulls again attempted to push Binance Coin (BNB) above the overhead resistance at $669.30 on Dec. 1 but failed. This suggests that bears continue to pose a stiff challenge at higher levels.
The 20-day EMA ($602) has flattened out and the RSI is near the midpoint, indicating a possible range-bound action in the near term.
If the price breaks below the 20-day EMA, the BNB/USDT pair could drop to the 50-day SMA ($564). This is an important level for the bulls to defend because a break below it could pull the price down to the 100-day SMA ($494).
On the contrary, if the price rises from the current level or the 50-day SMA, the bulls will attempt to push the pair above the $669.30 to $691.80 resistance zone.
SOL/USDT
Solana (SOL) broke and closed above the resistance line of the symmetrical triangle on Dec. 1 but the bulls could not sustain the higher levels. The bears have pulled the price back into the triangle today.
If the price rebounds off the 20-day EMA ($215), the bulls will make one more attempt to start the up-move by pushing the SOL/USDT pair above the overhead resistance at $243.12.
Contrary to this assumption, if the price breaks below the 50-day SMA ($210), it will suggest that the recent breakout above the resistance line may have been a bull trap. The bears will then try to sink the price below the support line of the triangle.
A break and close below the 100-day SMA ($178) could start a deeper correction that may reach $140.
ADA/USDT
Cardano (ADA) recovered sharply on Dec. 2 but hit a wall at the 20-day EMA ($1.72). The failure of the bulls to clear the overhead hurdle may have attracted heavy selling by the bears.
The sellers will now attempt to sink the price to the strong support zone at $1.50 to $1.41. This is an important support for the bears to defend because if it cracks, the selling could accelerate and the ADA/USDT pair may start its downward journey to $1.
Contrary to this assumption, if the price turns up from the support zone, it will indicate buying at lower levels. The bulls will then make one more attempt to propel the price above the 20-day EMA. If that happens, the pair could rally to the 50-day SMA ($1.94).
XRP/USDT
XRP’s failure to break and sustain above the psychological level at $1 indicates that bears are aggressively selling on minor rallies. The price has turned down and the bears will now try to pull the price to the strong support at $0.85.
The downsloping 20-day EMA ($1.02) and the RSI below 37 indicate that sellers are in control. If bears sink and sustain the price below $0.85, the XRP/USDT pair could plummet to the next support at $0.70.
On the other hand, if the price turns up from the current level or the $0.85 support and breaks above the 20-day EMA, it will suggest that the selling pressure may be reducing. The pair could then rise to the 50-day SMA ($1.09).
DOT/USDT
Polkadot (DOT) turned down from the breakdown level of the H&S pattern at $38.70 on Nov. 30 and broke below the 100-day SMA ($37). The bears will now attempt to pull the price to the strong support at $32.21.
If this level cracks, the selling could intensify and the DOT/USDT pair could plummet to the next support at $26. The downsloping 20-day EMA ($39) and the RSI in the negative territory suggest that bears have the upper hand.
Conversely, if the price turns up from the current level and breaks above the 20-day EMA, it will indicate that the markets have rejected the lower levels. That may trap several aggressive bears, resulting in a short covering. The pair could then rise to the 50-day SMA ($43) and later to $47.50.
Related: NFT music platforms to disrupt Spotify in 2022, Saxo Bank predicts
DOGE/USDT
The bulls repeatedly failed to push Dogecoin (DOGE) above the 20-day EMA ($0.22) in the past few days, suggesting that sentiment remains negative and bears are selling on rallies.
The 20-day EMA is sloping down and the RSI is below 36, indicating that the path of least resistance is to the downside. If bears sink the price below $0.19, the DOGE/USDT pair could drop to the critical support at $0.15.
On the other hand, if the price turns up from the current level or rebounds off $0.19 and breaks above the 20-day EMA, it will indicate strong accumulation at lower levels. The pair could then rally to the 50-day SMA ($0.24).
LUNA/USDT
Terra’s LUNA token broke above the moving averages on Nov. 28 and picked up momentum. Strong buying by the bulls pushed the price to a new all-time high on Nov. 30, indicating the resumption of the uptrend.
The failure of the bears to stall the up-move at the resistance line indicates aggressive buying by the bulls. If the price sustains above the channel, the LUNA/USDT pair could rally to $85.07.
On the contrary, if the price turns down and plummets back into the channel, it will suggest that traders are booking profits at higher levels. The pair could then decline to the 20-day EMA ($51).
If the price rebounds off this level, it will suggest that sentiment remains positive while a break below the 20-day EMA could pull the price down to the support line of the channel.
AVAX/USDT
Avalanche (AVAX) turned down from the 61.8% Fibonacci retracement level at $129.26 on Dec. 1. This may have prompted profit-booking from traders, which pulled the price below the 20-day EMA ($109) on Dec. 2.
The flattening 20-day EMA and the RSI near the midpoint suggest a balance between supply and demand.
If bulls push and sustain the price back above the 20-day EMA, the AVAX/USDT pair could rally to $129.26. A break and close above this level could open the doors for a possible retest of the all-time high at $147.
Alternatively, if the price fails to sustain above the 20-day EMA, it will suggest that traders are selling on minor rallies. The bears will then attempt to sink the price below the psychological support at $100. If that happens, the pair could decline to the 50-day SMA ($87).
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
