Bitcoin and most major altcoins are witnessing a relief rally, but bears at higher levels are likely to attract strong selling.
The fall of FTX was a major blow to the already weak sentiment among cryptocurrency investors. Blockchain analytics firm Chainalysis said that while a quick recovery is unlikely, the crypto universe will emerge stronger from this crisis. Chainalysis research leader Eric Jardine came to the conclusion after comparing the fall of FTX to the fall of Mount Gox.
Another comforting statement came from Bloomberg Intelligence Fund (EFT) analyst James Seyfarth, who said there is a “99.9% chance” that the Grayscale Bitcoin Trust (GBTC) will hold Bitcoin.
BTC
Tickers down
$22,907
He claimed. GBTC is unlikely to be liquidated, he added.
Daily cryptocurrency market performance. Source: Coin360
The adverse events of the past few days do not seem to have scared off small investors. According to blockchain analytics company Glassnode, the number of wallets holding at least one bitcoin or more increased to 950,000 in November.
Could Bitcoin and Altcoins Continue to Recover in the Near Future? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin bounced back from $15,476 on November 21, indicating that lower levels are attracting buying from aggressive bulls. The Relative Strength Index (RSI) has formed a bullish divergence, indicating that the bears may be losing their grip.
BTC/USDT Daily Chart. Source: TradingView
Buyers will look to push the price above the overhead resistance zone of the 20-day exponential moving average (EMA) between $17,186 and $17,622. If they can do that, BTC/Tether
USDT
Tickers down
$1.00
A pair can indicate a possible change in trend.
The pair could climb to the 50-day moving average (SMA) of $18,718 and then challenge the psychological level of $20,000.
Contrary to this assumption, if the price breaks from the current level or overhead resistance, it would suggest that the bears will continue to be sellers of the relief rallies. Bears will try again to push the pair below $15,588 and the downtrend will continue. The next downside support is $12,200.
ETH/USDT
Ether
ETH
Tickers down
$1,572
It rebounded from strong support near $1,073 on November 22 and broke above the downtrend line on November 24. This suggests that the bulls are attempting a comeback.
ETH/USDT Daily Chart. Source: TradingView
The ETH/USDT pair may next rise to the 20-day EMA at $1,248, which is an important level to watch out for. If buyers break this barrier, the pair can try to rise above the resistance line of the descending channel pattern.
On the other hand, if the price breaks down from the 20-day EMA, it would indicate that sentiment remains negative and traders are selling in rallies. Bears will then try to push the price up to the support line of the channel. If this support is broken, the pair could descend towards the critical support zone between $1,000 and $881.
BNB/USDT
B.N.B
B.N.B
Tickers down
311 dollars
It broke below the strong $258 support on November 21, but it turned out to be a bear trap. On November 22nd, the price rose, and on November 23rd, the momentum increased. This brought the overhead resistance price to $300.
BNB/USDT Daily Chart. Source: TradingView
As seen in the Doji candlestick pattern formed on November 24 and 25, the bulls and bears are witnessing a fierce battle at $300. A strong defense was made.
Advertisement
Stay safe on Web3. Learn more about Web3 Antivirus →
Conversely, if the price breaks down from current levels and breaks below the moving average, it would suggest that the pair could remain between $258 and $300 for a few more days.
XRP/USDT
XRP
XRP
Tickers down
$0.40
It appeared at $0.34 on November 21st and rose above the symmetrical triangle and 20-day EMA at $0.40 on November 24th. This showed that uncertainty between buyers and sellers has resolved in favor of the bulls.
XRP/USDT Daily Chart. Source: TradingView
Buyers are looking to push the price above the overhead resistance at $0.41. If they win, the XRP/USDT pair could gain momentum and rise to $0.50 and then $0.56.
However, the Bears may have other plans. They will try to stop the recovery at $0.41 and bring the price back to the triangle. If this happens, the aggressive bulls may get stuck and the pair may fall to the support line.
ADA/USDT
Cardano
ADA
Tickers down
$0.374
is in a strong downward trend. Bulls $0 on November 22nd
