Bitcoin (BTC) and Ether (ETH) are testing important psychological support levels at $60,000 and $4,000, respectively. Both of these levels are important to maintain the trend in the short term.
While the drop may scare traders away from lending, it appears that bitcoin whales are seeing the drop as a buying opportunity. Data on the chain shows that the third largest bitcoin whale added 207 bitcoins to its holdings at an average price of around $62,053 per bitcoin.
Since the last purchase, whale stocks have increased by 635 bitcoins in November, according to journalist Colin Wu.
Daily performance in the cryptocurrency market. Source: Coin360
However, this is not all bullish news for Bitcoin and cryptocurrencies. The US dollar rose to a sixteen-month high on expectations that rising inflation could force the US Federal Reserve to raise interest rates and accelerate $120 billion per month to cut its purchasing program.
A strong dollar could hurt risky assets even more, and this may be the reason behind the recent declines in bitcoin and altcoins, said Joel Krueger, currency strategist at LMAX Group.
Will bulls defend and improve against strong support levels, or will heavy selling push cryptocurrency prices below strong support levels? Let’s take a look at the top 10 cryptocurrency charts to find out.
BTC / USDT
Bitcoin dropped below the 20-day exponential moving average ($62,607), the benchmark for the rising wedge pattern on November 16. This is the first sign that the bulls may be losing their grip.
BTC/USDT daily chart. Source: TradingView
Buyers are trying to defend the 50-day simple moving average (SMA) ($59.122), but a shallow pullback indicates that the bulls are in no rush to buy at today’s level.
If the price drops below today’s level or the 20-day moving average, the bears will try to bring the BTC/USDT pair below $57,820. If they succeed, sales could rise and the pair could drop to $52,500.
Contrary to this assumption, if the price rises from the current level and rises above the 20-day moving average, this may indicate a strong build-up at the lower levels. The pair could then retest the upper region of $67,000 to $69,000.
ETH / USDT
Ether broke below the ascending channel on November 15, followed by further selling on November 16, bringing the price below the 20-day moving average ($4439). This was the first close of the 20-day moving average since October 1.
ETH/USDT daily chart. Source: TradingView
The long tail of the November 17 candle indicates that the bulls are trying to protect the 50-day simple moving average ($4033). The 20 day EMA has started to decline and the Relative Strength Index (RSI) has fallen into negative territory, indicating the bears are back.
If the price falls below today’s level or the 20-day moving average, this indicates that sentiment has turned negative and traders are selling on the rise. The ETH/USDT pair could then break above the 50-day SMA and drop to the next support level at $3,600.
This bearish outlook will disappear if the pair breaks out from the current level and breaks through the 20 day moving average.
BNB / USDT
Binance Coin (BNB) dropped from the resistance high to $669.30 on November 15 and fell below the 20-day moving average ($591) on November 16. The selling continued on November 17th and the bears pushed the price close to the 50% Fibonacci retracement. $552.30 level.
BNB/USDT daily chart. Source: TradingView
The long tail of the November 17 candle indicates strong buying at the lower levels. Buyers will now attempt to push the price back towards the 20 day moving average. If they succeed, the BNB/USDT pair will try to climb again to $669.30.
Alternatively, if the price falls from the 20-day moving average, it will indicate that sentiment has turned negative and that traders are selling on the rise. Then the pair may continue falling to the 50-day moving average ($509).
SOL / USDT
Solana (SOL) fell below the bullish channel and the 20-day EMA ($224) on November 16, indicating that the bulls may lose control. Buyers are trying to defend the break of $216, but any dip could lead to selling at higher levels.
SOL/USDT daily chart. Source: TradingView
The 20-day moving average has stabilized and the RSI has fallen to its middle, indicating a balance between supply and demand. This balance will shift in favor of the bears if the price breaks and stays below $216.
On the contrary, if the price returns from the current level, the SOL/USDT pair may rise to the downtrend line. This level may act as a strong resistance, but if the bulls overcome this hurdle, the pair may retest the all-time high.