The recovery for BTC and altcoins has been swift, suggesting that investors will continue to maintain a risk-averse stance on all cryptocurrencies.
The collapse of cryptocurrency exchange FTX has created a liquidity crisis in the crypto space, which could extend the crypto winter until the end of 2023, according to a Coinbase research report.
According to analysts, the FTX implosion may keep institutional investors at bay as they are more likely to tread carefully for a while.
The crisis has negatively affected several cryptocurrency-focused companies that have assets in FTX following the company’s bankruptcy on November 11. Investors also fear that the contagion will spread, causing further damage to the cryptocurrency ecosystem.
Cryptocurrency market daily performance. Source: Coin360
Although some investors were unsettled by the collapse of FTX, billionaire venture capitalist and serial blockchain investor Tim Draper remains bullish on Bitcoin.
. In a Nov. 15 interview with Cointelegraph, Draper doubled down on his goal of $250,000 for Bitcoin in 2023.
However, investors should take the price projection with a grain of salt as Bitcoin is unlikely to start a bull market in the near future.
What are the key support and resistance levels to watch out for in Bitcoin and Altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
Delivery EVERY MONDAY
the Market Outlook Bulletin
By subscribing, you accept us
Bitcoin broke and closed below the June low of $17,622 on Nov. 9. This marks the repeat of the downtrend. Although the bulls attempted a strong rally on Nov. 10, their efforts were met with a strong sell above $17,622. This suggests that the bears have reversed the level and resistance.
BTC/USDT daily chart. Source: TradingView
The 20-day exponential moving average (EMA) of $18,271 has turned down and the RSI is in the negative territory. This suggests that the bears have the upper hand.
If the price sustains below $17,622, the possibility of a break below $15,588 will increase. If this happens, the BTC/Tether (USDT) pair can extend its decline to $12,200.
Contrary to this assumption, if the price turns up and breaks above the 20-day EMA, it will suggest strong demand at lower levels. The pair could challenge the psychological level at $20,000.
it has been moving down in a descending channel pattern for the past few weeks. The failure to push the price above the channel on Nov 4 may have led to profit booking by short-term traders.
ETH/USDT daily chart. Source: TradingView
The buyers sank to the support line on November 10th. This suggests that the bears are selling at higher levels.
The bears will once again try to sink the price below the channel. If that happens, the selling could intensify and the ETH/USDT pair could drop to $1,000. To gain an advantage, buyers must push the price above the moving average. The pair could then rally to the downtrend line.
rallied to $398 on Nov 8, but the bulls could not sustain the higher levels as seen on the long wick of the daily candlestick. The sell-off continued on Nov. 9, bringing the price closer to strong support at $258.
BNB/USDT daily chart. Source: TradingView
The bulls bought the dip on Nov. 10 but were unable to push the price above the 20-day EMA of $295. This suggests that the sentiment has turned negative and the bears have sold the relief rallies to the 20-day EMA.
The bears will once again try to break the support at $258 and if they succeed, the BNB/USDT pair can drop to $239 and then $216. This negative view will be invalidated in the short term if the bulls push and sustain the price above $313.
for 0.38 US dollars
it re-entered the $0.41-$0.30 range on Nov 8, indicating a lack of demand at higher levels. The sale continued on November 9 and the price fell to $0.32.
The chart of changes in XRP and the US dollar is constantly updated. Source: TradingView
The buyers bought the dip and tried to push the price above $0.41, but the bears did not give up. This suggests that the bears have reversed the $0.41 level and resistance. the basses