Bitcoin (BTC) price continues to decline after the turmoil of mortgage traders on the derivatives markets on November 10th. This led to the fact that the financing rates for derivative financial instruments on the stock exchanges fell to a neutral territory by 0.01%.
Derivatives markets have ripened from a rally to an all-time high in April, data analytics firm Arcane Research said in its latest weekly newsletter. The company notes that the futures base, the difference between the spot price of bitcoin and the futures price that was high in April, has fallen a lot, “indicating a healthier market.”
Daily performance in the cryptocurrency market. Source: Coin360
According to Bloomberg Senior ETF Analyst Erik Balchunas, ProShares bitcoin exchange-traded funds (ETFs) have grown and are in the top 2% of ETFs by volume by average volume.
Another sign of cryptocurrency’s growing popularity is Grayscale Investments, which has peaked at $60 billion in assets under management and moved into the largest SPDR Gold Shares (GLD) fund.
Will bitcoin and altcoins recover in the short term after strong support levels, or will take profit orders push prices lower? Let’s check out the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin reversed its trend from $69,000 on November 10 and fell to the 20-day exponential moving average (EMA) ($62,532). The long tail of today’s candle indicates a strong buy on the 20 day moving average.
BTC/USDT daily chart. Source: TradingView
However, the bulls failed to consolidate after the fall of November 11th, indicating their reluctance to buy at higher levels. Bears resumed selling on November 12th and are trying to keep the price below the 20 day moving average.
If it succeeds, BTC/USDT could drop to the 50-day simple moving average (SMA) ($57,048). Negative RSI divergence also warns that bulls may lose control.
Conversely, if the price bounces off the current level, this indicates that sentiment is still positive and that traders continue to build up when they fall. A breakout and a close above $69,000 would indicate a renewed trend. The pair could then rise to $75,000.
ETH / USDT
Ether (ETH) dropped from $4,868 on November 10 and is not in line with the upward channel target. The bulls bought into this downturn and attempted to resume the rally on November 11th, but the higher levels again attracted selling.
ETH/USDT daily chart. Source: TradingView
The ETH/USDT pair fell back to the channel benchmark on November 12th. If the price drops from this level, the bulls will attempt to resume the trend, pushing the price above the all-time high at $4,868.
The rise in the 20-day EMA ($4,430) and the RSI in positive territory indicate benefits for buyers. Alternatively, if the price breaks below the channel, this indicates weak bullish momentum. The pair could then move down to the critical support level at $4,000.
BNB / USDT
Binance Coin (BNB) formed an out-of-day candlestick pattern on November 10 when the price reversed from $662.90 and fell to the 20-day moving average ($573). The least positive is that the bulls were buying on dips in the 20 day moving average from the long tail of today’s candle.
BNB/USDT daily chart. Source: TradingView
By November 11th, the BNB/USDT pair formed a candlestick pattern, which indicates the reluctance of the bulls and bears. If the price drops below $600, the pair may retest the 20-day moving average.
If this support is broken, the pair could drop to the 50% Fib retracement at $552.30 and then to the 61.8% retracement at $524.70.
Conversely, if the price rises from the current level and crosses the $635.20 mark, it will indicate a build-up at lower levels. After that, the pair may attempt to break the upper resistance level of $691.80.
ADA / USDT
Cardano (ADA) reversed sharply and fell below the downtrend line and moving averages on November 10. This indicates that traders are selling aggressively at higher levels.
ADA/USDT daily chart. Source: TradingView
On November 11, the bulls tried to push the price above the downtrend line but failed. The resale expired during the 20-day moving average ($2.06) on November 12. The ADA/USDT pair may now decline to the critical support area from $1.87 to $1.80.
A breakout and a close below this area would be a dangerous negative as it could hurt the selling and lead to a further drop to $1.50. Bulls need to push the price and keep it above 2.47.