Bitcoin (BTC) and Ether (ETH) are both dropping from their upper resistance levels, indicating that the bears are continuing to sell on the rallies.
A new study in Australia shows that the Ethereum Improvement Proposal (EIP) 1559 update made Ether a better repository of assets than Bitcoin. The report says that the annual increase in the supply of Ether since the release of EIP-1559 is 0.98%, compared to a 1.99% increase in the supply of Bitcoin.
Ether is in high demand due to the growing popularity of non-fungible tokens, decentralized finance, and altcoins linked to the Metaverse. Some analysts remain positive about Ether and expect it to rise to the $6000 to $10,000 range.
Daily performance in the cryptocurrency market. Source: Coin360
Analyst firm Glassnode said that massive open interest in the derivatives market and long-term selling by owners could prolong Bitcoin’s decline. “The effect of open interest rates on options and futures contracts at all-time highs or a new all-time high” can create shocks.
Could a Bitcoin correction push the entire crypto sector down? Let’s take a look at the top 10 cryptocurrency charts to find out.
BTC / USDT
The bulls failed to keep the bitcoin price above the 20-day exponential moving average (US$57,905) on November 30 and December 1. This indicates that the bears are aggressively defending the 20-day exponential moving average.
BTC/USDT daily chart. Source: TradingView
The bears will now attempt to move below the 100-day SMA ($54,485) and the intraday low on November 28 at $53,256.64. If successful, the BTC/USDT pair could plunge into an important psychological support of $50,000.
This is an important support to watch out for, because in the event of a breakout, sales may rise and the pair may drop to $40,000. The 20-day EMA and the downtrend Relative Strength Index (RSI) are in negative territory, indicating that the path to at least resistance is to the downside.
Contrary to this assumption, if the price falls from the 100-day simple moving average and rises above the 20-day moving average, this will indicate accumulation at lower levels. After that, the pair may rise to the 50-day moving average ($60,750).
ETH / USDT
Ether fell from $4,778.75 on December 1, indicating that the bears are aggressively defending their all-time high at $4,868. The price reverted to the 50-day simple moving average ($4319) on Dec.
ETH/USDT daily chart. Source: TradingView
If the price returns from the current level, it will indicate that the sentiment is still positive and traders are buying on the dip. The bulls will then make another attempt to push the price above $4,868.
If successful, ETH/USDT may resume its trend with the next target at $5,796. Conversely, if the price breaks below the 50 day simple moving average, this may indicate that traders may be rushing out. After that, the pair could drop to the strong support level at $3,900.
BNB / USDT
On December 1, the bulls once again attempted to push Binance Coin (BNB) towards the upper resistance of $669.30 but failed. This indicates that bears are still a serious problem at higher levels.
BNB/USDT daily chart. Source: TradingView
The 20-day moving average ($602) has flattened and the RSI is close to its midpoint, indicating a possible short-term move.
If the price drops below the 20-day moving average, BNB/USDT may fall to the 50-day simple moving average ($564). This is an important level to protect the bulls as a break below it could push the price towards the 100-day moving average ($494).
Conversely, if the price rises from the current level or the 50-day moving average, the bulls will try to push the pair through the $669.30 to $691.80 resistance area.
SOL / USDT
Solana (SOL) broke and closed above the resistance line of the symmetrical triangle on December 1, but the bulls were unable to sustain the higher levels. On December 3, the Bears returned the prize to the Triangle.
SOL/USDT daily chart. Source: TradingView
If the price bounces back from the 20-day EMA ($215), the bulls will make another attempt to start the move, pushing the single currency pair/USD above the upper resistance at $243.12.
Contrary to this assumption, if the price breaks below the 50-day SMA ($210), it could mean that the recent break above the resistance line could be a bullish trap. The bears will then try to push the price below the triangle guide line.
A breakout and a close below the 100-day moving average ($178) could trigger a deeper bounce that could reach $140.