Top 4 Cryptocurrencies To Watch This Week
The crypto futures markets saw huge deleveraging on December 4, causing Bitcoin (BTC) and most altcoins to sell down. Over the course of a 24-hour period, data reveals that more than $2.5 billion of cryptocurrency was liquidated.
Ether (ETH) has continued to outperform Bitcoin in the recent downturn. While Bitcoin’s market domination has fallen below 41%, Ether has continued to grow and now has a market dominance of more than 21%.
According to some observers, Bitcoin’s recent slump might lead to a long period of consolidation. Bitcoin, according to Decentrader co-founder filbfilb, will consolidate well into the first quarter of next year. “A gradual grind up,” says Lex Moskovski, CIO of Moskovski Capital.
Could Bitcoin reach a bottom in the coming days? Let’s look at the top four cryptocurrencies that might boost the markets.
In late September, Bitcoin found firm support around the 100-day simple moving average ($54,496), making it a crucial level for bulls to defend.
The bears, on the other hand, had different ideas. On December 3, they dragged the price below the 100-day SMA, perhaps triggering many stop losses. Panic selling ensued, and the BTC/USDT pair plummeted below $42,000 on December 4. As seen by the extended tail on the day’s candlestick, the bulls purchased this collapse with enthusiasm.
Bears have the upper hand, as seen by the downsloping 20-day exponential moving average ($56,219) and the relative strength index (RSI) near the oversold zone. If the pair continues to fall from its present levels, the strong support near $40,000 might be the next barrier.
If the price rises from its present level, the pair might reach the 100-day SMA, which could operate as a powerful resistance. The first hint that a stronger rebound is conceivable will be a break and closure above this level.
The pair has been trading inside the confines of a declining channel. Bears dragged the price below the channel’s support line, but bulls bought the dip and brought the pair back into the channel.
The pair might rally to the 20-EMA if bulls successfully defend the support line. This level is likely to operate as a significant resistance once more. If the price falls below the 20-EMA, it indicates that sentiment is still negative. This might make a break below the channel more likely.
If that happens, the pair might collapse to the $42,000 to $40,000 strong support zone. A break and close above the 20-EMA, on the other hand, will be the first warning that sellers are losing control. The pair might then ascend to the channel’s resistance line.
For the previous several days, Ether (ETH) has been stuck in a range between $4,868 and $3,900. Bears were able to push the price below the range on December 4, but they were unable to maintain the lower levels. The bulls aggressively purchased this drop, as seen by the extended tail on the day’s candlestick.
The ETH/USDT pair might move to the 20-day EMA ($4,326) if bulls keep the price above $3,900. Breaking and closing above this level might pave the way for a rally to the all-time high of $4,868. To signify a restart of the uptrend, the bulls will have to break through this level.
In contrast to this notion, if the price falls below $3,900, the bears will make another effort to dive and sustain the pair below that level. If they succeed, the pair might fall below $3,400, which is a solid support level.
Near the 61.8 percent Fibonacci retracement level of $4,215.12, the pair’s comeback is meeting tough resistance. The 20-EMA is trending down, and the RSI is in negative territory, indicating that the bears have a little advantage.
The pair might drop to $3,823.98 if the price breaks through the $4,000 support level. If this level is broken and closed below, a retest of $3,503.68 is possible.
If bulls can push the price above the moving averages, the pair might advance to $4,654.88 and then test the all-time high.
For the previous few days, Polygon (MATIC) has been trading inside an upward channel pattern. On December 3, the bulls managed to push the price above the channel’s resistance line, but they were unable to maintain the higher levels. On December 4, profit booking may have been triggered as a result of this.
The MATIC/USDT pair fell to the 100-day SMA ($1.54), but buyers came in to take advantage of the drop. Today’s candlestick, on the other hand, has a lengthy wick, indicating that bears are selling around the resistance line.
The 20-day EMA ($1.85) is trending up, and the RSI is positive, indicating a buyer’s edge. If the recent comeback holds, the bulls will try to push the price above the resistance line once more.
A break and closure below the 50-day SMA ($1.76), on the other hand, might push the price to the 100-day SMA.
The rebound of the pair is being challenged by selling near the 78.6 percent Fibonacci retracement level of $2.21. If bears manage to push the price below the 20-EMA, the pair might drop to the 50-SMA, then the 100-SMA. A breach below this support level might lead to a drop below $1.54.
If the price bounces off the 20-EMA, the bulls will aim to push the pair over $2.21 once more. If they succeed in doing so, the pair might rise to $2.40. To push the pair to an all-time high of $2.70, the bulls must pass this overhead hurdle.
ALGO / USDT
On Dec. 4, Algorand (ALGO) fell below important support at $1.50, but the bulls pounced, as seen by the lengthy tail on the candlestick. Bulls will aim to push the price above the moving averages immediately.
The ALGO/USDT pair might ascend to the resistance line if they do so. The bears must defend this level since a breach above it would render the descending triangle pattern illegal. After that, the pair may increase to $2.36 and eventually to $2.55.
In contrast to popular belief, if the price falls below the moving averages, it means bears are selling on rallies. The pair might next retest $1.50 as support. The bearish setup will be completed if this level is broken and closed below. The price of the pair might then fall below $0.80.
For quite some time, the pair has been fluctuating between $1.60 and $2. The bears were able to push the price below $1.60, but they were unable to keep it there. This means that you should purchase on the dips aggressively. The bulls have returned the price to its previous range.
The pair might rally to the overhead barrier at $2 if buyers move the price above the moving averages. The bears, on the other hand, will aim to dive and sustain the pair below $1.60 if the price turns down from the moving averages. A retest of $1.32 is expected if they manage to do so.