The FTX crisis kept Bitcoin’s (
ARK Invest said in the latest edition of its monthly “The Bitcoin Monthly” newsletter, that the FTX implosion “could be the most damaging event in crypto history,” but added that decentralized blockchains were “as strong as ever.”
Could lower levels attract buyers in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to spot the levels where buyers may step in.
BTC/USDT
After trading near the 20-day exponential moving average ($16,966) for the past few days, Bitcoin is threatening to dip below the immediate support at $16,787.
If that happens, the short-term advantage could tilt in favor of the bears and the BTC/USDT pair may drop to $16,000. Such a move will suggest that the pair could remain stuck between $15,476 and $17,622 for a few more days. The longer the time spent inside the range, the stronger will be the breakout from it.
On the upside, bulls will have to push and sustain the price above the 50-day simple moving average ($18,122) to gain the upper hand. The pair could then pick up momentum and rally to $20,000.
ETH/USDT
After trading between the moving averages for the past few days, Ether (ETH) broke below the 20-day EMA ($1,250) on Dec. 7. This suggests that the bears have overpowered the bulls.
If the price sustains below the 20-day EMA, the ETH/USDT pair could dive to $1,151 and then to the important support at $1,073.
On the contrary, if the price turns up quickly and climbs back above the 20-day EMA, it will suggest strong buying on dips. That could increase the likelihood of a break above the 50-day SMA ($1,331). Above this level, there is no significant resistance until the pair reaches the downtrend line of the descending channel.
BNB/USDT
The bulls tried to push BNB (BNB) above the overhead resistance at $300 on Dec. 5 but the bears held their ground. The sellers strengthened their position on Dec. 7 by pulling the price below the immediate support at $285.
If the price sustains below $285, the BNB/USDT pair could slump to $275. This level may act as a minor support but if it breaks down, the selling could pick up and the pair may plunge to the crucial support at $250.
If bulls want to prevent the fall, they will have to push and sustain the price above $300. That could trap the aggressive bears on the wrong foot and push the price toward the overhead resistance at $338. This level may again witness a tough battle between the bulls and the bears.
XRP/USDT
The bears successfully defended the 20-day EMA ($0.39) in the past few days and pulled XRP (XRP) below the uptrend line on Dec. 7. This invalidates the developing ascending triangle pattern.
Buyers will try to salvage the situation by defending the strong support at $0.37. If the price rebounds off this level and rises above the 20-day EMA, the XRP/USDT pair may consolidate between $0.37 and $0.41 for some time. A break and close above $0.41 will suggest the start of a new up-move.
The bears are likely to have other plans. They will try to break the support at $0.37 and pull the price to $0.34. That could keep the pair range-bound between $0.30 and $0.41 for a few more days.
ADA/USDT
Cardano (ADA) failed to sustain above the 20-day EMA ($0.32) on Dec. 5 which may have tempted short-term buyers to close their longs and the bears to establish fresh short positions.
The sellers will try to pull the price below the crucial support at $0.29 but they may face strong resistance from the bulls because if the level gives way, the ADA/USDT pair could signal the resumption of the downtrend.
Although the trend is down, the relative strength index (RSI) is maintaining its bullish divergence. This suggests that lower levels may attract buyers. The first sign of sustainable recovery could be on a break and close above $0.33. The pair could then rise to the downtrend line.
DOGE/USDT
The long wick on Dogecoin’s (DOGE) Dec. 5 candlestick shows that bears are defending the 50% Fibonacci retracement level at $0.11.
The DOGE/USDT pair turned down and broke below the 20-day EMA ($0.09) on Dec. 7 but a minor positive is that the bulls are buying the dips to the 50-day SMA ($0.09). If the price rebounds off the current level, the pair could again rise to $0.11.
The RSI has dropped close to the center which suggests that the bullish momentum could be waning. The bears may try to tug the price below the 50-day SMA and gain the upper hand. If they succeed, the pair could gradually slip toward $0.07.
MATIC/USDT
Buyers tried to thrust Polygon (MATIC) above $0.95 on Dec. 5 but the bears vigorously defended the level. The price turned down and broke below the 20-day EMA ($0.90) on Dec. 7. This indicates that efforts by the bulls to flip the 20-day EMA into support have failed.
The bears will try to build upon this opportunity and drag the price to the uptrend line. This is an important level to keep an eye on as the bulls have successfully defended it on three previous occasions. If this support collapses, the MATIC/USDT pair could slide to the crucial support at $0.69.
This negative view will invalidate in the near term if the price turns up and breaks above the overhead resistance at $0.97. That could clear the path for a possible rally to $1.05.
Related: Why is Bitcoin price down today?
DOT/USDT
Polkadot (DOT) repeatedly broke above the 20-day EMA ($5.50) from Dec. 2 to 5 but the bulls could not build upon this strength. This shows that demand dries up at higher levels.
The bears will try to resume the downtrend by pulling the price below the strong support at $5. If they do that, the DOT/USDT pair could plummet to $4.32.
Another possibility is that the price rebounds off $5. That will indicate strong buying at lower levels. The bulls will then try to drive the price above $5.73. If they can pull it off, it could signal a double bottom pattern. The pair could then rise to $6.18 and later to the pattern target of $6.46, which is near the downtrend line.
LTC/USDT
Litecoin (LTC) broke above the $84 resistance on Dec. 5 but the long wick on the day’s candlestick shows selling at higher levels. This may have tempted short-term traders to book profits, which has pulled the price to the breakout level of $75.
The moving averages are sloping up but the RSI has formed a bearish divergence, indicating that the buying pressure may be reducing. A break and close below the 20-day EMA ($74) could enhance the prospects of a drop to the 50-day SMA ($64).
Contrarily, if the price rebounds off the 20-day EMA ($74), it will suggest that the trend remains positive and traders are buying the dips. The bulls will then make one more attempt to clear the overhead hurdle at $85 and push the LTC/USDT pair toward $104.
UNI/USDT
Uniswap (UNI) climbed above the 50-day SMA ($6.16) on Dec. 2 but the bulls could not sustain the buying pressure and push the price to the resistance line of the symmetrical triangle pattern.
The price turned down on Dec. 7 and the bears are trying to sink the price back below the 20-day EMA ($5.92). If this level fails to hold, the selling momentum could pick up and the UNI/USDT pair could decline to the support line of the triangle.
Alternatively, if the price turns up and breaks above $6.55, it will tilt the short-term advantage in favor of the buyers. The pair could then rise to the resistance line where the bulls may again encounter strong selling by the bears. The next trending move could begin on a break above or below the triangle.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
