Bitcoin (BTC) and most altcoins were sold on December 4 with massive deleveraging seen in the crypto derivatives markets. The data suggests more than $ 2.5 billion of crypto settlements over a 24-hour period.
During the recent fall, Ether (ETH) have continued to outperform Bitcoin. While Bitcoin's market dominance has fallen below 41%, Ether has continued to gain traction and its market dominance has risen above 21%.
Some analysts believe that Bitcoin's recent crash could result in a long consolidation phase. Decentrader co-founder filbfilb expects Bitcoin will consolidate well into the first quarter of the next year. Lex Moskovski, CIO of Moskovski Capital, also expects โa slow routine. "
Could Bitcoin bottom out in the next few days? Let's take a look at the charts of the top 5 cryptocurrencies that could drive markets higher.
Bitcoin had received strong support at the 100-day simple moving average ($ 54,496) in late September, making it an important support for the bulls to defend. However, the bears had other plans. They lowered the price below the 100-day Simple Moving Average (SMA) on Dec 3, which may have triggered various stop loss. That resulted in a panic sell and the BTC / USDT pair plunged to $ 42,000 on December 4. The bulls bought this decline vigorously, as seen from the long tail on the day's candle. The 20-day descending exponential moving average ($ 56,219) and the relative strength index (RSI) near the oversold zone suggest that bears have the upper hand. If the pair continues lower from current levels, the next stop could be the strong support at $ 40,000. Conversely, if the price rises from the current level, the pair could rise to the 100-day SMA, which can act as a strong hurdle. A breakout and close above this level will be the first sign that a more robust recovery is possible. The pair has been trading within a descending channel pattern. The bears pulled the price below the channel support line, but the bulls bought this decline and pushed the pair back into the channel. If the bulls successfully defend the support line, the pair could rise to the 20-EMA. This level is again expected to act as strong resistance. If the price falls from the 20-EMA, it will indicate that the sentiment is still negative. That can increase the likelihood of a breakout below the channel. If that happens, the pair could fall to the strong support zone at $ 42,000 to $ 40,000. On the contrary, a breakout and a close above the 20-EMA will be the first sign that sellers may be losing control. Then, the pair could rise to the resistance line of the channel. Ether (ETH) has been limited to a range between $ 4,868 and $ 3,900 for the past few days. Although the bears pushed the price below the range on December 4, they were unable to sustain the lower levels. The bulls bought this decline aggressively as seen from the long tail on the day's candle. If the bulls hold the price above $ 3,900, the ETH / USDT pair could rally to the 20-day EMA ($ 4,326). A breakout and close above this level could clear the way for a possible rally to the all-time high of $ 4,868. The bulls will have to overcome this barrier to signal the resumption of the uptrend. Contrary to this assumption, if the price turns down from the current level, the bears will make one more attempt to sink and hold the pair below $ 3,900. If they are successful, the pair could plummet to the strong support at $ 3,400. The pair's rebound is facing strong resistance near the 61.8% Fib retracement level at $ 4,215.12. The 20-EMA is sloping down and the RSI is in negative territory, indicating a minor advantage for bears. If the price breaks the support at $ 4,000, the pair could drop to $ 3,823.98. A breakout and a close below this level could result in a retest of $ 3,503.68. Conversely, if the bulls carry the price above the moving averages, the pair could rally to $ 4,654.88 and then challenge the all-time high. Polygon (MATIC) has been trading within an ascending channel pattern for the past few days. The bulls pushed the price above the resistance line of the channel on December 3, but could not sustain the higher levels. This may have triggered the profit booking on December 4. The MATIC / USDT pair fell to the 100-day SMA ($ 1.54), but buyers stepped in and bought this drop. However, the long wick in today's candle indicates that the bears are selling close to the resistance line. The 20-day EMA ($ 1.85) is rising and the RSI is in the positive zone, indicating an advantage for buyers. If the current bounce holds, the bulls will again try to push the price above the resistance line. Alternatively, a breakout and close below the 50-day SMA ($ 1.76) could drive the price to the 100-day SMA. The pair's recovery is facing a sell off to the 78.6% Fibonacci retracement level at $ 2.21. If the bears sink the price below the 20-EMA, the pair could fall to the 50-SMA and then to the 100-SMA. A break below this support could open the doors for a drop to $ 1.54. Conversely, if the price bounces off the 20-EMA, the bulls will retry to push the pair above $ 2.21. If they manage to do that, the pair could rise to $ 2.40. The bulls will have to overcome this hurdle to push the pair to the all-time high of $ 2.70. Related: Bitmart Hacked for $ 200 Million After Ethereum Exploiting Binance Smart Chain Algorand (SOMETHING) fell below the critical support of $ 1.50 on December 4, but the bulls bought the decline aggressively, as seen from the long tail of the candle. The bulls will now try to push the price above the moving averages. If they do, the ALGO / USDT pair could move up to the resistance line. This is an important level that bears should defend because a break above it could invalidate the descending triangle pattern. The pair could then rise to $ 2.36 and then $ 2.55. Contrary to this assumption, if the price falls below the moving averages, it will indicate that the bears are selling in rallies. The pair could retest the support at $ 1.50. A breakout and close below this level will complete the bearish setup. The pair could then fall to $ 0.80. The pair has been trading between $ 1.60 and $ 2 for some time. The bears lowered the price below $ 1.60 but could not sustain the lower levels. This suggests aggressive buying on dips. The bulls have pushed the price back into the range. If buyers lift the price above the moving averages, the pair could rise to the overhead resistance of $ 2. On the other hand, if the price turns down from the moving averages, the bears will again try to sink and hold the pair below $ 1.60. If they manage to do that, the $ 1.32 test is likely to be repeated. Elrond's (EGLD) strong rally from $ 287 on November 17 to the all-time high of $ 544.25 on November 31 pushed the RSI into the overbought zone. Vertical rallies are generally followed by cascading descents and that is what happened in the last few days. The EGLD / USDT pair turned down from the all-time high and plunged to $ 224.62 on December 4, completing a 100% retracement of the final leg of the rally. A minor upside is that the bulls bought the December 4 lows as seen from the long tail on the day's candle. Buyers are trying to defend the uptrend line and push the price back above the 50-day SMA ($ 324). If they manage to do that, the pair could rally to the 20-day EMA ($ 364), where the bears can reassemble strong resistance. If the bulls clear this hurdle, the pair could rise to $ 425. Conversely, if the price falls and closes below the 100-day SMA ($ 271), the pair could extend its decline to $ 200. Strong selling pushed the price below the uptrend line, but the bears were unable to sustain the lower levels. This indicates a strong buildup on falls. The pair quickly rose above the uptrend line again, but the bulls were unable to break through the barrier at the 20-EMA. This indicates that sentiment is still negative and traders are selling on rallies. If the price remains below the uptrend line, the next stop could be $ 224.62. Conversely, if the price rises from the current level and breaks above the 20-EMA, it will indicate that the bears may be losing control. The pair could then begin a recovery, which could reach the 50-SMA. A breakout and close above this resistance could clear the way for a possible rally to the $ 425 to $ 440 resistance zone. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and business move involves risk, you should do your own research when making a decision.
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