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Bitcoin (Bitcoin)’S dominance dropped from approximately 48% on October 20 to 42.3% on November 7, while the total market value of cryptocurrencies continued to head north. This indicates that the price movement has shifted from Bitcoin to altcoins.
Ki Young Ju, CEO of CryptoQuant, said Bitcoin whales are on sale But this did not lead to a break of the strong support of $60,000. He also pointed out that the continued decline of Bitcoin reserves in various exchanges indicates that buyers have a great appetite.
Most market participants are still bullish on Bitcoin and Expected to rebound to 288,000 USD According to a survey conducted by PlanB, by early 2022.
Real Vision founder Raoul Pal also predicted the bullish outlook for cryptocurrencies in an interview on November 3.He said that the current bull market is unlikely to reach its peak in December this year. Extended to between March and June Next year’s. Pal predicts the possible launch of Ethereum 2.0 and the possibility of Ethereum (Ethereum) The green light for listed trading funds in the first half of 2022 will attract institutional investors and trigger a massive rebound.
Against this bullish background, let’s analyze the charts of the top 5 cryptocurrencies that may still receive attention and outperform the broader market in the short term.
Bitcoin/USD
Bitcoin broke through the bullish flag pattern on November 2, but buyers were unable to use this move to push the price to the upper resistance zone between $64,854 and $67,000. This shows that the bears have not given up yet and are trying to stop the rise.
However, a positive sign is that the bulls are actively defending the 20-day exponential moving average ($60,794). Buyers will try again to push the price above the upper resistance zone.
If they can succeed, the bullish momentum may rebound, and the BTC/USDT currency pair may rebound to the model target of $89,476.12.
If the price breaks and falls back to the flag pattern, this bullish view will be invalidated. Then the currency pair may fall to the 50-day simple moving average (54,883 USD). The area between the 50-day moving average and $52,920 may attract strong buying support from the bulls.
The 4-hour chart shows that the currency pair fluctuates between $63,732.39 and $59,500. A flat moving average and a relative strength index (RSI) slightly above the midpoint indicate a balance between supply and demand.
If the price rebounds from the moving average, the bulls will try again to push the price above the upper resistance zone between $63,732.39 and $64,270. If they manage to do this, the currency pair may retest all-time highs.
Conversely, a break of the moving average may pull the currency pair to a strong support area of ??between 59,500 USD and 58,000 USD. If the zone is broken, the bears will prevail. Then the currency pair can be corrected to 55,267.61 US dollars.
DOT / USDT
polka dot(point) Soared on November 1st and broke the upper resistance at 49.78 USD. The RSI breaks through the downtrend line, invalidating the negative divergence. This indicates the resumption of the upward trend.
The bears are trying to pull the price back below the breakout level on November 6, but the long tail on the candlestick indicates that the bulls are buying on dips. The rising moving average and the RSI near the overbought zone indicate that the path of least resistance is to the upside.
If the bulls push the price above US$55.09, the DOT/USDT currency pair may rebound to US$63.08. The bears may have other plans, as they will try to drive the price below the breakout level of $49.78. Such a move would indicate the lack of higher-level buyers.
A breakout and closing below the 20-day moving average ($46.82) will be the first sign that the bulls may lose control. Then the currency pair may fall to the 50-day moving average ($38.54).
The 4-hour chart shows that the currency pair is rising in an ascending channel. Although the bulls pushed the price above the channel, they failed to take advantage of this advantage. This shows that the bears are vigorously defending this resistance.
The currency pair rebounds from the midline of the channel, and the bulls will try again to clear the obstacles above. If they succeed, the currency pair may gain momentum.
Or, if the price falls from the current level or above the resistance and breaks below the midline, the currency pair may fall to the support line. A rebound from this level will keep the uptrend unchanged, but a break below this level will indicate that the trend may change.
Moon/USDT
The LUNA token of the Terra protocol broke through on November 4 and closed above the upper resistance level of $49.54. The bears tried to pull the price back below the breakout level on November 5 and 6, but were unable to maintain a lower level. This shows that the bulls are buying on dips.
If the bulls push the price above $53.18, the LUNA/USDT currency pair may rebound to the wedge-shaped resistance line, where the bears are expected to form strong resistance. If the bulls push the price above the wedge, the bullish momentum may pick up.
Or, if the price drops from the current level or above resistance, the currency pair may fall to the support line of the wedge. A break and close below this support level will indicate a possible change in trend. The currency pair may fall to 35 dollars.
The bulls have pushed the price above the triangle resistance line, indicating that they have overcome the resistance of the bears. Sellers are trying to pull the price back into the triangle, but the bulls are actively defending the breakout level.
Both moving averages on the 4-hour chart are sloping upwards, and the RSI is in the positive zone, indicating that buyers are at an advantage. If the bulls push the price above $53.18, the currency pair may rebound to the pattern target of $62.59.
related: Bitcoin is consolidating below the Fib level, which triggered the 2013 all-time high
AVAX / USDT
After trading near the overhead resistance of $79.80 in the past three days, AVAX has broken the barrier. This indicates that the upward trend may resume.
The rising moving average and the RSI in the overbought zone indicate that the bulls are in control. If the price stays above US$79.80, the AVAX/USDT currency pair may rebound to US$93.04, and then try to challenge the psychological level of US$100.
Contrary to this assumption, if the price falls from the current level and falls below $79.80, it indicates that the market has rejected the higher level. Then the currency pair may fall to the 20-day moving average (69.51 USD).
The 4-hour chart shows the formation of a round bottom pattern, which was completed on the breakout and closed above $79.80. If the bulls maintain the price above $79.80, the currency pair may begin to move north towards the pattern target of $108.56.
The first important downside level is $79.80. A rebound from this level will indicate that the bulls are actively buying on dips, which will increase the likelihood of resuming the upward trend.
Conversely, a break below $79.80 may cause the currency pair to fall to $72. A break below this support level will indicate that the bears are back in the game.
EGLD/USDT
Elrond (EGLD) broke the previous all-time high of $303.03 on November 3, which is a positive sign. The bears tried to pull the price back below the breakout level on November 5 and 6, but failed.
This shows that the bulls are trying to defend the breakthrough level and turn it into support. A break and close above $329 will mark the resumption of the uptrend. The rising 20-day moving average ($281) and the RSI close to the overbought zone indicate that the path of least resistance is to the upside.
Contrary to this assumption, if the EGLD/USDT currency pair falls from the current level and breaks below 303.03 USD, the next stop may be the 20-day moving average. A strong rebound from this support level will keep the upward trend unchanged, but a break below this support level may open the door for a deeper correction of the 50-day moving average ($249).
The 4-hour chart shows the formation of an ascending triangle pattern, which was completed on the breakout and closed above $303.03. This aggressively set model target is $427, but the rebound may not be linear, because shorts may pose a serious challenge at $355.
A break below the 20-EMA will be the first sign of weakness. This may pull the price down to the breakout level of $303, which is an important support for the bulls’ defense. If the support breaks, the currency pair may fall to the 50 moving average and then to the trend line of the triangle.
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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