Bitcoin (BTC) witnesses a tough fight near the $ 58,000 mark but it has not stopped selected altcoins from reaching a new all-time high. This shows that traders are looking at the basic development of individual coins.
One of the latest top performing big altcoins has been Avalanche (AVAX), which has risen more than 120% in November. The coin caught the attention of traders ahead of the announcement of auditing firm Deloitte, which plans to build its disaster relief platforms on the Avalanche blockchain.
In another step showing growing crypto adoption, El Salvador’s President Nayib Bukele announced launch of Bitcoin city, which will be powered by geothermal energy and initially funded by $ 1 billion in Bitcoin bonds.
Can strong purchases at lower levels increase Bitcoin above $ 60,000 and will altcoins participate in the recovery? Let’s study the charts of the 5 best cryptocurrencies that may attract traders’ attention in the short term.
BTC / USDT
Bitcoin turned direction from $ 55,600 on November 19, but the recovery meets resistance at the 50-day simple moving average ($ 60,187). The moving averages are on the verge of a bearish crossover and the relative strength index (RSI) is in the negative range, indicating that bears are making a strong comeback.
If the price reverses from the current level, the Bears will try to extend the correction by pulling the BTC / USDT pair below $ 55,600. If that happens, the next stop could be the strong support zone of $ 52,500 to $ 50,000.
If the price recovers from this zone, the bulls will try to push the pair above the moving averages and the downward trend line. Such a move will indicate that the correction phase may be over. The Bulls will then try to push the $ 69,000 all-time high.
Alternatively, a $ 50,000 break in psychological support could intensify sales as traders rush to the exit. The pair can then drop to $ 45,000 and later to $ 40,000.
The 4-hour chart shows that bears pulled the price below the strong support of $ 58,000 but they could not build on this advantage. The bulls bought the dip and have pushed back the price above the 20-exponential moving average.
If the price stays above $ 58,000, the pair can rally to the downward line. A break and closure over this resistance may indicate that bulls have the upper hand. The couple was then able to rally to $ 62,000 and later to $ 67,000.
Conversely, if the price reverses from the current level and breaks below $ 55,600, it will signal a possible start to a deeper correction.
AVAX / USDT
Avalanche is in a strong upward trend and has consistently made new highs in recent days. The Bulls pushed the price above the 200% Fibonacci extension level of $ 146.18 today, but the long wick of today’s candlestick shows profit booking at higher levels.
The rising 20-day EMA (96) indicates that bulls are in command, but the RSI close to 80 indicates that the rally may overheat in the near future. This may result in a minor correction or consolidation in the next few days.
If the price turns down from the current level, $ 110 and then the 20-day EMA can serve as a strong support. A strong recovery from any of the levels will indicate that the bulls see the declines as a buying opportunity. The pair can then march towards the 261.8% Fibonacci extension level of $ 175.58.
Contrary to this assumption, if the price breaks below the 20-day EMA, it will indicate that traders are rushing to the exit. It can pull the AVAX / USDT pair to $ 81.
The pair has declined from $ 147, indicating aggressive profit booking at higher levels. The Bears will now try to pull the prize to 20-EMA, which will probably serve as a strong support.
If the price recovers from the 20-EMA, it will indicate strong buy on fall. The bulls will then try to resume the upward trend by pushing the pair over $ 147.
Contrary to this assumption, if the price breaks below 20-EMA, sales may accelerate and the pair may drop to $ 110. Such a move will indicate that the bulls may lose their grip. The pair can then drop to 50-SMA.
MATIC / USDT
Polygon (MATIC) has been trading in a rising channel pattern in recent days. The bulls pushed the price across the channel’s resistance line on 28 and 29 October but failed to sustain the outbreak. This may have prompted sales from short-term traders.
The Bears once again successfully defended the resistance line on 3 November. This started the downward journey towards the channel’s trend line. The declining 20-day EMA ($ 1.69) and RSI just below the midpoint indicate a slight advantage for sellers.
If the price reverses from the current level, the MATIC / USDT pair may fall to the trend line. The bulls are expected to defend this level aggressively. If the price recovers from the trend line and rises above the 20-day EMA, it will indicate that the selling pressure may decrease. It can signal the beginning of the journey north towards the resistance line.
Contrary to many people’s beliefs, if bears fall below the trend line, it could result in a $ 1 drop in psychological support.
The 4-hour chart shows that bulls are trying to carry out a relief rally from the strong support zone of $ 1.50 to $ 1.40. 20-EMA has started to appear and RSI is close to the center, which indicates that the selling pressure may decrease.
If bulls push the price above $ 1.70, the pair can rise to $ 1.80. A pause and closing above this level indicates strength. The pair can then start their rise to $ 2.15. On the downside, sales may accelerate if the bears pull the price below $ 1.40.
The Bears tried to pull Elrond (EGLD) below the breakout level of $ 303.03 from 16 to 18 November, but the bulls bought the dips seen from the long tail of the candlesticks. Strong purchases on November 19 pushed the price above the overhead resistance of $ 338.70.
This resumed the upward trend and the EGLD / USDT pair has reached close to its $ 427 target. The sharp rally has pushed the RSI deep into the overbought zone, suggesting that a minor consolidation or correction may be around the corner.
The first support on the downside is the breakout level of $ 338.70 and then the 20-day EMA ($ 325). If the price recovers from any of the levels, it will indicate that traders continue to buy on fall. The Bulls will then try to resume the upward trend with the next target of $ 500.
This positive view will be invalidated if the price turns down and falls below the breakout level of $ 303.
The 4-hour chart shows that bears tried to stop the mission at $ 400 but the bulls were not in the mood to give in. Persistent purchases at higher levels pushed the couple over the psychological barrier. The rising 20-EMA and RSI in the overbought zone indicate that bulls are firmly in the driver’s seat.
The first important level to look at on the downside is $ 380. If bears pull the price below this support, the pair could drop to 20-EMA. A strong recovery from this support may keep the trend intact, but a break below it will indicate that bullish momentum may weaken.
MANA / USDT
Decentraland (MANA) declined to 78.6% Fibonacci retracement level of $ 4.35 on November 20. This indicates that traders can sell at the rally.
The MANA / USDT pair can now drop to the immediate support at $ 3.50 and if this level gives way, the correction can be deepened to the 20-day EMA ($ 3.11). If the price recovers from any of the gains, it will indicate that sentiment remains positive and traders are buying on fall.
The bulls will then try to push the price to $ 4.36. A pause and closing over this resistance could open the doors for a rally to $ 4.94. This positive view will be invalidated if the price continues to be lower and breaks during the 20-day EMA.
The pair has risen inside a rising channel pattern. The bulls’ failure to push the price across the resistance line may have prompted sales from traders, which dragged the price below 20-EMA.
Both moving averages have leveled off and the RSI has fallen near the midpoint, indicating that bullish momentum may weaken. The pair can now fall to the trend line for the channel where purchases may appear.
If the price recovers from the trend line, the pair can continue its rise within the channel. Buyers will then try to push the price to the resistance line. The bullish momentum can pick up speed during a break and close over the channel.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading business involves risk, you should do your own research when making a decision.