Bitcoin’s dominance (BTC) has dropped from around 48% on October 20 to 42.3% on November 7, while the total capitalization of the cryptocurrency market has continued its journey north. This suggests that the price action has changed from Bitcoin to Altcoins.
Ki Young Ju, CEO of CryptoQuant, said that Bitcoin whales are selling, but that hasn’t caused the strong $ 60,000 support breakout. He also noted that Bitcoin stocks continued to decline on the exchanges, suggesting a strong appetite from buyers.
Most market participants remain optimistic about Bitcoin and, according to a survey by PlanB, expect a rally to USD 288,000 by the beginning of 2022.
The founder of Real Vision, Raoul Pal, also cast an optimistic picture for cryptocurrencies in an interview on November 3rd. He said the current uptrend is unlikely to peak this December and stretch between March and June next year.. Pal anticipates the possible launch of Ethereum 2.0 and the likelihood of an exchange-traded Ether (ETH) fund getting the green light in the first half of 2022 will attract institutional investors and spark a massive rally.
In this bullish context, let’s take a look at the charts of the top 5 cryptocurrencies that can stay focused and do better in the short term.
BTC / USDT
Bitcoin broke the bullish flag pattern on November 2, but buyers were unable to capitalize on this move and push the price above the upper resistance zone from $ 64,854 to $ 67,000.. This suggests that the bears have not given up and are trying to stop the upward move.
One positive sign, however, is that the bulls are aggressively defending the 20-day exponential moving average ($ 60.794). Buyers will make another attempt to push the price above the upper resistance zone.
If you can bullish momentum may rebound and the BTC / USDT pair is likely to rebound towards the pattern target at $ 89,476.12.
This bullish view will be invalidated if price collapses and falls back into the flag pattern. Then the pair can drop to the 50-day SMA ($ 54.883). The zone between the 50-day SMA and $ 52,920 should attract strong buying support from the bulls.
The 4-hour chart shows the pair is in the $ 63,732.39- $ 59,500 area. The flat moving averages and the Relative Strength Index (RSI) just above the midpoint indicate a balance between supply and demand.
If price bounces off the moving averages, the bulls will try again to push price above the overhead resistance zone between $ 63,732.39 and $ 64,270. If they succeed, the couple can test the all-time peak again.
Vice versa, a break below the moving averages could push the pair into strong support at $ 59,500- $ 58,000. The bears win the game if this zone is breached. The pair could then correct to $ 55,267.61.
DOT / USDT
Polkadot (DOT) surged and broke the overhead resistance at $ 49.78 on Nov 1st. The RSI broke above the downtrend line, invalidating the negative divergence. This points to a resumption of the uptrend.
The bears attempted to bring the price below the breakout level on November 6, but the long tail of the candle indicates that the bulls will buy on dips.. The rising moving averages and the RSI near the overbought zone indicate that the path of least resistance is up.
If the bulls push the price above $ 55.09, the DOT / USDT pair could rise to $ 63.08. The bears may have other plans as they will attempt to bring the price below the breakout level of $ 49.78. Such a move will indicate a lack of buyers at higher levels.
A breakout and close below the 20-day EMA ($ 46.82) will be the first sign that the bulls may lose control. The pair could then fall to the 50-day SMA ($ 38.54).
The 4 hour chart shows that the pair is rising within an ascending channel. Although the bulls drove the course across the canal, they were unable to take advantage of it. This suggests that the bears are vigorously defending this resistance.
The pair bounced back from the center line of the channel and the bulls will try to break the upper hurdle again. If they are successful, the couple can gain momentum.
Alternative, If the price drops from the current level or the upper resistance and breaks below the midline, the pair may fall to the support line. A rebound at this level will keep the uptrend intact, but a break below it indicates a possible trend reversal.
MOON / USDT
The Terra Protocol’s LUNA token broke and closed above the resistance above $ 49.54 on November 4th. The bears attempted to bring the price below the breakout levels on November 5th and 6th but were unable to sustain the lower levels. This suggests that the bulls are buying on dips.
If the bulls hold above $ 53.18, the LUNA / USDT pair could rise to the wedge resistance line where the bears are likely to build stiff resistance.. The bullish momentum could rebound if the bulls push the price above the wedge.
Alternatively, if the price drops from current levels or the upper resistance, the pair may fall to the wedge support line. A breakout and close below this support signal a possible trend reversal. The pair could then fall to $ 35.
The bulls pushed the price above the triangle’s resistance line, suggesting that they have broken the bear resistance. The sellers tried to push the price back into the triangle but the bulls aggressively defended the breakout level.
Both moving averages on the 4 hour chart are rising and the RSI is in positive territory, indicating an advantage for buyers. If the bulls hold the price above $ 53.18, the pair can move towards the target of the $ 62.59 pattern.
AVAX / USDT
After trading near the resistance above $ 79.80 for the past three days, Avalanche (AVAX) broke the barrier. This indicates a possible resumption of the uptrend.
The rising moving averages and the RSI in the overbought territory show that the bulls are in control. If the price holds above $ 79.80, the AVAX / USDT pair could rise to $ 93.04 and then try to challenge the psychological level at $ 100.
Contrary to this assumption, If the price turns down from the current level and falls back below $ 79.80, it indicates that the markets have rejected the higher levels. Then the pair could hit the 20-day EMA ($ 69.51).
The 4 hour chart shows the formation of a rounded bottom pattern that completed on a breakout and closed above $ 79.80. If the bulls hold above $ 79.80, the pair could begin its march north towards the target of the pattern at $ 108.56.
The first major level seen on the downside is at $ 79.80. A rebound at this level suggests that the bulls are aggressively buying on dips and this increases the likelihood that the uptrend will resume.
Conversely, a break below 79.80 could be achieved US dollars drove the pair down to $ 72. A break below that support suggests the bears are back in the game.
EGLD / USDT
Elrond (EGLD) broke its all-time high on November 3 at $ 303.03 – a positive sign. The bears attempted to bring the price below the breakout levels on November 5th and 6th but failed.
This suggests that the bulls are trying to defend the breakout level and turn it into support. A breakout and close above USD 329 signal the resumption of the uptrend. The rising 20-day EMA ($ 281) and the RSI near the overbought zone suggest that the path of least resistance is up.
Contrary to this assumption, the next stop of the 20-day EMA could be if the EGLD / USDT pair turns down from current levels and breaks below USD 303.03. A strong rebound from this support will keep the uptrend intact, but a break below it could open the doors for a deeper correction in the 50-day SMA ($ 249).
The 4 hour chart shows the formation of an ascending triangle pattern that completed on a breakout and closed above $ 303.03. This positive setup has a pattern target at $ 427, but the rally may not be linear as the bears are likely to be very challenging at $ 355.
A break below the 20-day EMA is the first sign of weakness. That could bring the price down to the breakout level at $ 303, which is important bull support to be defended. If this support breaks, the pair may fall to the 50-day SMA and then the triangle’s trendline.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move involves risk, you must do your own research when making a decision.