Bitcoin (BTC) and most major altcoins are struggling to recover from the sharp drop seen on November 26. This indicates that traders may be nervous about buying at current levels due to uncertainty over the new strain of highly mutated coronavirus detected in South Africa.
Bitcoin’s assets under management fell 9.5% to $ 48.70 billion in November, according to a CryptoCompare report. On the other hand, the AUM of altcoin-based crypto funds rose 5.4% to $ 16.60 billion.
This indicates that traders may have made profits in Bitcoin and turned some of that money into altcoins.
Celsius founder and CEO Alex Mashinsky is unmoved by the recent drop and sees the drop as a buying opportunity. He said on November 28 that he had “bought nearly $ 10 million worth of Bitcoin and Ether at current levels” as he expects Bitcoin to rally at $ 70,000. Mashinsky added that he would halve his latest buys if Bitcoin breaks support at $ 50,000.
If Bitcoin recovers from the current level, some altcoins may also attract the attention of investors. Let’s analyze the charts of the 5 main cryptocurrencies that could remain on the agenda in the coming days.
BTC / USDT
Bitcoin has corrected in a descending channel in recent days. The bulls are trying to defend the 100-day simple moving average ($ 54,064) over the past two days, but the shallow rebound indicates a lack of urgency to build up at the current level.
The 20-day exponential moving average ($ 58,521) and the Relative Strength Index (RSI) below 39 indicate the bears are in control. If the price rebounds from the current level, the bulls could hit a wall at the 20-day EMA.
If the price drops again from the 20-day EMA, it will increase the prospect of a breakout below the 100-day EMA. The pair could then challenge the channel support line. A break below the channel could intensify sales and push the BTC / USDT pair down to $ 40,000.
The bulls will need to push and hold the price above the channel to signal that the correction may be over. The pair could resume bullish momentum on a breakout and close above $ 61,000.
The RSI on the 4-hour chart has formed a bullish divergence, indicating that selling pressure may ease. If the bulls push the price above the 20-EMA and 50-SMA, the pair could reach $ 60,000.
This is an important resistance for the bulls to overcome as the previous two recoveries failed near this level.
If the price drops from the current level or overhead resistance and goes below $ 53,500, the sell may accelerate. The pair could then fall to the strong support at $ 50,000.
BNB / USDT
Binance Coin (BNB) is witnessing a bull-bear fight near the 20-day EMA ($ 590). Although the price fell and closed below the 20-day EMA on November 26, the bears were unable to take advantage of this advantage.
The bears pulled the price below the 20-day EMA again today, but the long tail on the candlestick shows a build-up to lower levels. The 20-day flat EMA and the RSI near the midpoint indicate a balance between supply and demand.
If the bulls push the price above $ 621.30, BNB / USDT could rally to the air resistance zone again at $ 669.30 to $ 691.80.
Alternatively, if the price drops and closes below the 20-day EMA, the pair could drop to the 50-day SMA ($ 546). A breakout and close below that support could extend the pullback to the 100-day SMA ($ 487) and then to $ 440.
Price has rebounded out of the uptrend line on the 4-hour chart, but bears try to stop the rally near the 20 EMA. If the price continues to fall, bears will try again to bring the downside. pair below the uptrend line.
If they succeed, the pair could drop into the support area between $ 564.20 and $ 553.80. A break below this zone could cause a steeper drop to $ 510.
Conversely, if the bulls push and hold the price above the 20-day EMA, the pair could hit $ 621.30 and gain momentum above.
LUNA / USDT
Terra’s LUNA token trades in an ascending channel pattern. The bulls successfully defended the channel’s support line between Nov 24-26 and pushed the price above the 20-day EMA ($ 44.33) today.
If the bulls hold the price above the 20-day EMA, the LUNA / USDT could hit $ 52, then retest the all-time high at $ 54.95. The rally could face strong selling near the resistance line of the channel.
Contrary to this assumption, if the price does not hold above the 20 day EMA, it will indicate that traders are selling on rallies.
The bears will then try again to bring the price down below the channel. If they succeed, it will signal a possible change in trend. The pair could then drop to $ 32 and later to $ 24.
The 4 hour chart shows that the bulls have pushed the price above the overhead resistance at $ 45.54, but they are struggling to hold the pair above. This indicates that the bears are trying to push the price below the breakout level and trap aggressive bulls.
The 20-EMA has appeared and the RSI is in the positive zone indicating that the bulls have a slight advantage. If the price rises from the current level or rebounds to $ 45.54, this will suggest a build-up on the lows.
Conversely, a breakout and close below the moving averages could tip the short-term advantage in favor of the bears. The pair could then drop to $ 38.
Related: The holy grail for crypto traders: constant average returns above 5%
MANA / USDT
Decentraland (MANA) fell $ 5.90 on Nov 25, but the long tail of candlesticks of the past two days shows the bulls attempting to defend the area between the 38.2% Fibonacci retracement level at 4.48 $ and the 50% retracement level at $ 4.05.
The bulls will now attempt to push the price above the all-time high at $ 5.90 and resume the uptrend. If successful, the MANA / USDT pair could begin their journey to the next target goal at $ 7.87.
Rising moving averages and the RSI in positive territory indicate that the bulls have the upper hand.
This bullish view will cancel out in the short term if the price drops and falls below the 20-day EMA ($ 3.88). Such a move will indicate that supply exceeds demand. The pair could then dip to $ 3.10.
The pair bounced off the 50-SMA, but the bears are aggressively defending the air resistance at $ 5. The bears will now attempt to sink and hold the price below the 50-SMA. If they are successful, this will suggest the start of a deeper correction to $ 3.90 and later to $ 3.50.
On the contrary, if the price rises from the current level or the 50-SMA, the bulls will try to push and hold the price above $ 5. This could speed up buying and the pair could climb back up to $ 5.50 and then back to $ 5.90.
SAND / USDT
The sandbox (SAND) corrected the sharp rise in recent days. The bulls are trying to stop the pullback in the area between the 38.2% Fibonacci retracement level at $ 6.02 and the 50% retracement level at $ 5.26.
If the price rises from the current level, this will indicate that sentiment remains positive and traders are buying at every minor drop. The bulls will then try to push the price up above the overhead resistance at $ 8.48.
If they are successful, SAND / USDT could resume its rally with the next target target at $ 10.52. This bullish view will be invalidated in the short term if the price drops from the current level and goes below the 20 day EMA ($ 4.84).
The pair bounced off the 50-SMA on the 4-hour chart and the bulls pushed the price above the descending wedge pattern. If the bulls keep the price above the 20-EMA, the pair could reach $ 7.50 and then challenge the all-time high.
Contrary to this assumption, if the price drops from the current level or overhead resistance and goes below the 50-SMA, this will indicate that traders can profit on relief rallies. This could open the door to a deeper fall to $ 4.50.
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 comes with risk, you should do your own research before making a decision.