Bitcoin (BTC) and most major cryptocurrencies sold off along with global stock markets and crude oil on November 26. The news of the discovery of a new type of coronavirus in South Africa has terrified markets, which worries researchers because of the large number of mutations in the thorn. protein.
The sharp drop resulted in over $750 million in cross-liquidation within 24 hours, but cross-funding rates remain high. This indicates that sales may not end yet.
Daily performance in the cryptocurrency market. Source: Coin360
Bitcoin’s monthly close in November likely won’t reach the PlanB analyst’s worst-case scenario of $98,000. This would be the first error since the model accurately predicted month-end price levels for August, September and October. However, the creator of the stock-to-flow model believes that the $100,000 target for bitcoin in this halving cycle is still valid.
Is the current downturn an attractive Black Friday trade or the start of a short-term downtrend? Let’s take a look at the top 10 cryptocurrency charts to find out.
BTC / USDT
The bulls pushed Bitcoin back above the $58,000 breakdown on November 25, but failed to break the 20-day exponential moving average (US$59,510). This can attract profits from traders.
BTC/USDT daily chart. Source: TradingView
The selling rallied after the breakout below $55,317 on November 26, and psychological support at $50,000 may be the next stop.
If the price drops from this level, buyers will try to push the price above the 20-day moving average. If they succeed, it means that pressure from sellers can be reduced.
Alternatively, if the next rally drops below the 20-day moving average again, it would signal that sentiment has turned negative and that traders are selling on the rise. This will increase the probability of a breakout to below $50,000.
If this happens, the BTC/USDT pair could witness a panic sell-off that could bring the price down to $40,000.
ETH / USDT
Ether (ETH) broke out of the 20-day EMA ($4336) on November 25, but the rally was trapped when the price fell on November 26 and fell on the developing Head and Shoulders Neck (H&S). a sample.
ETH/USDT daily chart. Source: TradingView
Bulls vigorously defend the neckline. If the price breaks below the neck, buyers will try to eliminate the upside resistance at $4,551. This could pave the way for a new test at the all-time high at $4,868.
On the contrary, the narrowing below the neck completes the bearish pattern. This could lead to an increase in sales, and the ETH/USDT pair could drop to the $3,600 to $3,400 support area. If this area also fails, the next stop could be a $3,047 target.
BNB / USDT
On November 25, Binance Coin (BNB) surged above the top resistance of $605.20, but the bulls failed to breach the strong barrier of $669.30. This indicates that the bears are aggressively defending this level.
BNB/USDT daily chart. Source: TradingView
A failure to rise above $669.30 could lead to profit taking by traders in the short term. Prize draw during the 20-day moving average ($590) on November 26. The bears will now attempt to lower the BNB/USDT pair to the 50-day simple moving average (SMA) ($539).
A breakout and a close below the 50 day simple moving average may indicate a change of trend. On a break below $510, selling may accelerate. The pair could then go down to $450.
Bulls should push and hold the price above the resistance area with the increase of $669.30 to $691.80 to signal a renewed trend.
SOL / USDT
Solana (SOL) returned from the 50-day SMA ($202) on November 25, but declined from the 20-day moving average ($216). This indicates a shift in sentiment from buying on dips to selling on rallies.
SOL/USDT daily chart. Source: TradingView
Selling continued on November 26th and bears are trying to push the price below the trend of the symmetrical triangle. If they keep the price below the triangle, SOL/USDT could drop to $153 and then to $140.
A bearish 20-day EMA and RSI below 43 indicate that the bears are gaining the upper hand. This negative opinion will be invalidated if the price rises from the current level and breaks the triangle resistance line.
ADA / USDT
Cardano (ADA) formed a Doji candlestick pattern by November 25, indicating indecision between bulls and bears. This uncertainty was resolved to the bottom on November 26 with a break below $1.58.