Reading time: ~ 2 m
If BTC holds the $ 48,100 level, then the value of the ETH, MATIC, ALGO and EGLD cryptocurrencies is likely to rise during the expected “consolidation phase” of Bitcoin.
Consider the charts of the top 5 cryptocurrencies that can lead the markets to growth.
BTC / USDT pair
The first cryptocurrency once again bounced off the 100-day moving average ($ 41,002). This is an indicator that the bulls are defending this level with all their might. At this time, they are working to get the price higher than the 20-day SMA, which is worth $ 45,178.
BTC / USD daily chart. Source: TradingView
However, the bears wanted to achieve something completely different. On Friday, they pushed the price down to below the 100-day SMA. Their act caused a series of panic sales, and on Saturday the BTC / USDT pair of cryptocurrencies completely dropped to the critical $ 42,000. The downward 20-day SMA, with a price of $ 56,219 and the Relative Strength Index (RSI), is in the oversold zone and shows us that the bears have gained the upper hand. If suddenly the pair will decline further, then the next level will be a decline to $ 40,000.
Interestingly, a rise in the price from the current level will also have a negative effect, because in this case, the price of the pair may rise to the level of the 100-day SMA, which, as a result, will serve as a strong obstacle.
4-hour BTC / USD chart. Source: TradingView
The pair was trading within the descending channel pattern. The bears brought the price down to a level below the channel’s support line, nevertheless, the bulls immediately acquired this fall and brought the pair back.
If the bulls manage to defend the support line, then this pair will be able to rise to the 20-EMA level. If the price decreases in relation to the 20-EMA, then this will send us a signal that the sentiment, alas, will remain negative.
If this suddenly happens, the pair will drop to the level of the strong support zone of $ 42-40 thousand. Otherwise, a breakout and close above the 20-EMA would indicate that sellers are losing control of the situation.
ETH / USDT pair
ETH in recent days has not gone beyond the range from $ 4868 to $ 3900. Bears pushed prices below their range over the weekend, but they were unable to keep them low. The bulls immediately acquired this fall, it is immediately evident from the chart.
ETH / USD daily chart. Source: TradingView
If the bulls manage to hold the price of more than $ 3, 9 thousand, the ETH / USDT cryptocurrency pair will reach the level of the 20-day EMA, the price of which is $ 4, 326 thousand. A break and close above this level is likely to open the way to an all-time high of $ 4.868K. Bulls need to overcome this barrier in order to signal the resumption of the uptrend.
Despite this offer, if the price deviates from the current level, then the bears will be forced to make another attempt to keep the pair price below $ 3.9 thousand. If the attempt is successful, the pair will drop to the level of $ 3,400.
ETH / USD 4-hour chart. Source: TradingView
The rebound of the pair will face serious resistance at the Fibonacci retracement level, the value of which is $ 4, 215, 12.
In the event that the price reaches the level of $ 4 thousand, the value of the pair will fall down to $ 3.823 thousand. A rise above this level will likely lead to retesting at the level of $ 3,503,000.
Otherwise, if the bulls sharply increase in value above the level of the moving averages, the pair will rise in price to $ 4, 654, and then may even challenge the record high.
MATIC / USDT pair
Polygon has been trading within the ascending channel pattern for several days now. The bulls increased their value above the channel resistance line on the 4th of this month, but their strength was not enough to maintain this high level. This prompted a profit reservation on Saturday.
Daily MATIC / USDT chart. Source: TradingView
The MATIC / USDT cryptocurrency pair fell to the 100-day SMA level, the price of which is $ 1.54, however, buyers did their bit and bought this fall.
The 20-day EMA, the price of which is $ 1.85, is moving up, and the relative strength index is at a positive level, which is a signal for buyers. If the current bounce continues, the bulls will try to increase the value above the resistance line.
The opposite of the break and close of the 50-day SMA, which is worth $ 1.76, can be the value of the 100-day SMA.
4-hour MATIC / USDT chart. Source: TradingView
During the recovery, the pair will face a sell-off at 78.6%. If the bears are able to lower the price below the 20-EMA, the pair’s value may drop to the 50-SMA, and then to the 100-SMA altogether. A fall below the level of this support could open the doors for a decline to the level of $ 1.54.
In the opposite case, if the price bounces back from the 20-EMA level, the bulls will once again attempt to raise the price of the pair above $ 2.21. If they succeed, then the price of the pair can rise to $ 2.40. The bulls will be forced to overcome this obstacle in order to raise the pair to an all-time high of $ 2.70.
For ALGO / USDT
On Saturday, the price of Algorand dropped below the critical support level to $ 1.5, but the bulls quickly bought this fall, as can be seen from the chart. Now they are trying to push the price above the moving average level.
ALGO / USDT daily chart. Source: TradingView
If they succeed in doing this, the price of the ALGO / USDT pair of cryptocurrencies will rise to the level of the resistance line. This is the most important level for the safety of bears, as a break above is more likely to invalidate the descending triangle. After that, the price of the pair may rise to $ 2.36, and then to $ 2.55.
If the price deviates from the moving averages, this will signal that the bears are selling on the ups. As a result, the pair will have the opportunity to retest the support at $ 1.50. A fall below this level will end the bearish setup. Further, the pair is likely to decline to $ 0.08.
4-hour ALGO / USDT chart. Source: TradingView
The pair has been trading in a range between $ 1, 60 and $ 2 for some time now. The bears were able to reduce the price to the level of $ 1.60, however, their strength was not enough to keep the lower levels. Everything that happens is suggestive of aggressive buying in downturns.
If buyers are able to raise the price above the level of the moving lines, then the value of the pair will rise to the upper resistance at $ 2. And if the price deviates from the moving averages, the bears will try to lower the price and keep it below the level of $ 1.60.
EGLD / USDT pair
The sharp rise in the EGLD price from $ 287 to a record high of $ 544, $ 25 on November 31 pushed the relative strength index far into the overbought pit. Vertical rises, as a rule, are accompanied by a sharp decline, and this is what has happened in recent days.
EGLD / USDT daily chart. Source: TradingView
The price of the EGLD / USDT cryptocurrency pair fell from a record high and fell sharply to $ 224.62 on Saturday, completing the 100% expected correction.
The minuscule part of the good is that they made lows on Saturday, which is clearly visible on the chart. Buyers are now trying their best to protect the trendline and return the price, which will be above the 50-day SMA, which costs $ 324.
If the target is reached, then the price of the pair will rise to the 20-day EMA, the value of which is $ 364. Mum bears will be able to resist. where the bears may again offer tough resistance. If the bulls find the strength to make this obstacle, then the price of the pair will increase to $ 425.
Otherwise, if the price falls below the 100-day SMA, which is worth $ 271, the pair will continue to fall down to $ 200.
4-hour EGLD / USD chart. Source: TradingView
Sharp and quick sales dropped the price below the level of the uptrend line, but the bears did not manage to keep the price at such a low level. From this we can conclude that there is a huge accumulation of failures.
The pair quickly found itself above the uptrend line, but the bulls failed to break the 20-EMA barrier.
All this suggests that the sentiment, as it was negative, remained so, and traders sell only on volumes. If the price holds below the uptrend line, its further stop will be $ 224.62.
And if the price rises and is able to break through the 20-EMA level, it will be a signal that the bears are losing control of the situation. Further, the pair will begin its recovery and is more likely to be able to reach the 50-SMA level. Subsequent growth to $ 440 is possible.
#Top #cryptocurrencies #week