Top 4 cryptocurrencies to watch this week: BTC, BNB, LUNA, SAND
Bitcoin (BTC) and the majority of prominent altcoins have been battling to recover after a steep drop on Nov. 26. Due to the uncertainties surrounding the new substantially modified coronavirus strain found in South Africa, dealers may be hesitant to buy at present levels.
Bitcoin’s assets under control fell 9.5 percent to $48.70 billion in November, according to a CryptoCompare analysis. The AUM of altcoin-based crypto funds, on the other hand, climbed by 5.4 percent to $16.60 billion.
This suggests that traders may have taken profits in Bitcoin and then invested a portion of their winnings in altcoins.
Alex Mashinsky, the founder and CEO of Celsius, is undeterred by the recent drop and sees it as a purchasing opportunity. He tweeted on Nov. 28 that he had “purchased over $10 million worth of Bitcoin and Ether at present values,” predicting a rally to $70,000 for Bitcoin. Mashinsky further stated that if Bitcoin hits the $50,000 support level, he would reduce his recent purchases in half.
Select altcoins may potentially gain investor interest if Bitcoin recovers from its present level. Let’s have a look at the charts of the top five cryptocurrencies that are likely to remain in the spotlight in the coming days.
For the previous two days, Bitcoin has been correcting in a downward channel. For the previous two days, the bulls have been seeking to defend the 100-day simple moving average ($54,064), but the thin bounce suggests a lack of urgency to accumulate at this level.
Bears are in control, as seen by the downsloping 20-day exponential moving average ($58,521) and the relative strength index (RSI) below 39. The bulls may run into resistance at the 20-day EMA if the price bounces off the present level.
If the price continues to fall from the 20-day EMA, the chances of a break below the 100-day SMA become more likely. The couple might then question the channel’s support line. A break below the channel may exacerbate selling and send the BTC/USDT pair below $40,000 in value.
To signal that the correction may be finished, the bulls will have to lift the price above the channel and keep it there. On a break, the pair might gain positive momentum and close above $61,000.
On the 4-hour chart, the RSI has established a positive divergence, indicating that selling pressure may be easing. The pair might reach $60,000 if bulls drive the price above the 20-EMA and 50-SMA.
The bulls must overcome this obstacle since the past two recoveries have stalled at this level.
If the price drops below $53,500 and breaks below the present level or the above barrier, the selling might pick up speed. The pair may then fall below $50,000, which is a solid support level.
The bulls and bears are battling it out at the 20-day EMA ($590) in Binance Coin (BNB). On Nov. 26, the price dropped and closed below the 20-day EMA, but the bears were unable to capitalize on this advantage.
On the 4-hour chart, the price bounced off the uptrend line, but bears are attempting to halt the recovery at the 20-EMA. If the price falls further, the bears will aim to push the pair below the uptrend line once again.
The pair might drop to the support zone between $564.20 and $553.80 if they succeed. A break below this level might lead to a more rapid drop below $510.
If bulls can take the price over the 20-day EMA and keep it there, the pair may move to $621.30 and gain momentum above it.
LUNA / USDT
Terra’s LUNA token is now trading in a rising channel. Between November 24-26, the bulls effectively defended the channel’s support line, and now the price has surged over the 20-day EMA ($44.33).
The LUNA/USDT pair might increase to $52 and then retest the all-time high of $54.95 if bulls can keep the price above the 20-day EMA. Near the channel’s resistance line, the rise might see heavy selling.
Contrary to popular belief, if the price does not stay above the 20-day EMA, it indicates that traders are selling rallies.
The bears will attempt to lower the stock below the channel once more. If they succeed, it will signify a possible shift in the trend. The pair might then fall to $32 and eventually to $24 in the future.
Bulls moved the price over the overhead resistance at $45.54 on the 4-hour chart, but they are fighting to keep the pair above it. This suggests that bears are seeking to trap aggressive bulls by pulling the price down below the breakthrough level.
The 20-EMA has gone up, and the RSI is in the positive zone, indicating a modest edge for bulls. If the price climbs from its present level or bounces back from $45.54, it suggests buying on dips.
A break and closing below the moving averages, on the other hand, might tip the short-term edge to bears. The price of the pair may then fall to $38.
The Sandbox (SAND) has been rectifying the recent strong upward trend. The bulls are aiming to halt the decline in the area between the 38.2% Fibonacci retracement level at $$6.02 and the 50% retracement level at $5.26.
If the price climbs from its present level, it means that traders are buying on every slight fall and the mood is still optimistic. The bulls will then attempt to push the price over the $8.48 overhead barrier.
If they succeed, the SAND/USDT pair may restart its upward trend, with $10.52 as the next target. If the price falls below the 20-day EMA ($4.84) and breaks below the present level, this bullish view will be invalidated in the near run.
On the 4-hour chart, the pair bounced off the 50-SMA, and bulls have pushed the price above the falling wedge formation. The pair might rally to $7.50 and then test the all-time high if bulls can keep the price above the 20-EMA.
Traders may be booking gains on relief rallies if the market moves down from the present level of overhead resistance and falls below the 50-SMA, contrary to popular belief. This might pave the way for a further drop below $4.50.