Bitcoin (BTC) and most of the altcoins sold out on December 4th, with massive deleveraging in the crypto derivatives markets. The data suggests more than $ 2.5 billion in crypto liquidations over a 24-hour period.
Last fall, Ether (ETH) Has has further surpassed Bitcoin. While Bitcoin’s market dominance has fallen below 41%, Ether has continued to gain ground and its market dominance has increased to over 21%.
Daily view of crypto market data. Source: Coin360
Some analysts believe that Bitcoin’s recent decline could result in a longer period of consolidation. Decentrader co-founder filbfilb expected Bitcoin is expected to consolidate well into the first quarter of the next year. Lex Moskovski, CIO of Moskovski Capital, also expects “a slow grinding. “
Could Bitcoin bottom out in the next few days? Let’s analyze the charts of the top 5 cryptocurrencies that could lead the markets up.
BTC / USDT
Bitcoin had seen strong support at the 100-day simple moving average ($ 54,496) in late September, making this a major support for the bulls to defend.
BTC / USDT daily chart. Source: TradingView
The bears had other plans, however. They pulled the price below the 100-day SMA on December 3rd, potentially triggering multiple stop losses. This led to panic selling and the BTC / USDT pair plummeted to $ 42,000 on December 4th. The bulls bought this decline vigorously, as can be seen from the long tail of the day candle.
The downward sloping 20-day exponential moving average ($ 56,219) and the relative strength index (RSI) near the oversold zone suggest the bears have the upper hand. If the pair continues to move down from current levels, the next stop could be strong support at $ 40,000.
Conversely, if the price rises from current levels, the pair could climb to the 100-day SMA, which could act as a strong hurdle. A breakout and a close above this level are the first signs that a stronger rebound is possible.
BTC / USDT 4-hour chart. Source: TradingView
The pair was trading within a descending channel pattern. The bears pulled price below the channel’s support line, but the bulls bought the dip and pushed the pair back into the channel.
If the bulls are successful in defending the support line, the pair could move up to the 20-EMA. It is expected that this level will act as a strong resistance again. If the price deviates from the 20-EMA, it will signal that sentiment remains negative. This can increase the likelihood of a break below the canal.
If so, the pair could fall into the strong support zone at $ 42,000 to $ 40,000. Conversely, a break and close above the 20-EMA is the first sign that sellers may lose control. The pair could then climb to the resistance line of the channel.
ETH / USDT
Ether (ETH) has been trading between $ 4,868 and $ 3,900 for the past few days. Although bears pulled the price below the range on December 4th, they were unable to hold the lower levels. The bulls bought this slump aggressively, as evidenced by the long tail of the day candle.
ETH / USDT daily chart. Source: TradingView
If the bulls keep the price above $ 3,900, the ETH / USDT pair could rise to the 20-day EMA ($ 4,326). A break and close above this level could pave the way for a potential rally to the all-time high of $ 4,868. The bulls need to cross this barrier to signal the resumption of the uptrend.
Contrary to this assumption, the bears will make one more attempt to move and hold the pair below $ 3,900 if the price drops from current levels. If successful, the pair could fall to the strong support at USD 3,400.
ETH / USDT 4-hour chart. Source: TradingView
The pair’s rebound faces stiff resistance near the 61.8% Fibonacci retracement level at $ 4,215.12. The 20-EMA is sloping down and the RSI is in negative territory, indicating a small upside for the bears.
If price breaks the $ 4,000 support, the pair could fall to $ 3,823.98. A break and close below this level could trigger a retest at $ 3,503.68.
Conversely, if the bulls drive price above the moving averages, the pair could rise to $ 4,654.88 and then challenge the all-time high.
MATIC / USDT
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 3rd but were unable to sustain higher levels. This could have resulted in a profit posting on December 4th.
MATIC / USDT daily chart. Source: TradingView
The MATIC / USDT pair crashed to the 100-day SMA ($ 1.54) but buyers stepped in and bought that drop. However, the long wick of today’s candle indicates that bears are selling near the resistance line.
The 20-day EMA ($ 1.85) is sloping up and the RSI is in positive territory, signaling an advantage for buyers. If the current rebound continues, the bulls will try again to push the price above the resistance line.
Alternatively, a break and close below the 50-day SMA ($ 1.76) could pull the price to the 100-day SMA.
MATIC / USDT 4-hour chart. Source: TradingView
The pair will rebound by selling at the 78.6% Fibonacci retracement level at $ 2.21. If bears sink price below the 20-EMA, the pair could fall to the 50-SMA and then to the 100-SMA. Breaking below this support could open the doors for a decline to $ 1.54.
Conversely, if price bounces off the 20-EMA, the bulls will try again to push the pair above $ 2.21. If they do that, the pair could climb to $ 2.40. The bulls will have to overcome this hurdle to lift the pair to the all-time high of $ 2.70.
Related: Bitmart to Ethereum, Binance Smart Chain Exploit Hacked for $ 200 Million
SOMETHING / USDT
Algorand (SOME) fell below the critical support at $ 1.50 on December 4th, but the bulls bought the dip aggressively, as evidenced by the long tail of the candle. The bulls will now try to push the price above the moving averages.
ALGO / USDT daily chart. Source: TradingView
If they do, the ALGO / USDT pair could hit the resistance line. This is an important level that the bears must defend as breaking it could invalidate the descending triangle pattern. The pair could then rise to $ 2.36 and later to $ 2.55.
Contrary to this assumption, this suggests that bears sell in rallies when the price deviates from the moving averages. The pair could then retest the support at $ 1.50. A break and a close below this level complete the bearish setup. The pair could then fall to $ 0.80.
ALGO / USDT 4 hour chart. Source: TradingView
The pair has been trading between $ 1.60 and $ 2 for a while. The bears pushed the price below $ 1.60 but failed to hold the lower levels. This suggests aggressive buying on dips. The bulls have pushed the price back into the range.
If buyers push the price above the moving averages, the pair could rise to the overhead resistance at $ 2. On the flip side, if the price breaks down from the moving averages, the bears will try again to move below $ 1.60 and hold the pair. If this succeeds, a retest of $ 1.32 is likely.
EGLD / USDT
The sharp rally in Elrond (EGLD) from $ 287 on November 17th to the all-time high of $ 544.25 on November 31st pushed the RSI deep into the overbought zone. Vertical rallies are usually followed by waterfall declines, and that is exactly what has happened in the past few days.
EGLD / USDT daily chart. Source: TradingView
The EGLD / USDT pair turned down from its all-time high and plunged to $ 224.62 on December 4th, completing a 100% retracement of the final leg of the rally.
On a small positive side, the bulls bought the December 4th lows, as indicated by the long tail of the day candle. Buyers are currently trying to defend the uptrend line and push the price back above the 50-day SMA ($ 324).
If they do, the pair could move to the 20-day EMA ($ 364) where bears could again build strong resistance. If the bulls overcome this hurdle, the pair could climb to $ 425.
Conversely, if the price falls and closes below the 100-day SMA ($ 271), the pair could extend its decline to $ 200.
EGLD / USDT 4 hour chart. Source: TradingView
Strong sales brought the price below the uptrend line, but the bears were unable to sustain the lower levels. This indicates a strong accumulation in dips. The pair quickly climbed back above the uptrendline but the bulls failed to break the 20-EMA barrier.
This suggests sentiment remains negative and traders are selling on rallies. If the price holds below the uptrendline, the next stop could be at $ 224.62.
On the contrary, if the price rises from current levels and breaks above the 20 EMA, it suggests that the bears may lose their hold. The pair could then begin a rebound that could hit the 50 SMA. A break and close above this resistance could pave the way for a possible rally into the $ 425 to $ 440 resistance zone.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk, you should do your own research when making a decision.
