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Market data is provided by the HitBTC exchange.
Funds are formed during market capitulations. After Bitcoin broke below the critical support of $ 5,900, investors abandoned their positions, fearing a complete loss on investment. For someone who does not believe in the future of cryptocurrencies and whoever was in it just to make money, it might be the right thing to do.
However, for others, who believe in the history of blockchain and cryptocurrencies, the current fall offers a great opportunity for long-term investing. During the background formation, the perspectives are always very serious and every small part of the news is considered negative.
One of these reports was the United States Department of Justice, which examined the probability of handling Bitcoin in 2017 using Stablecoin Tether. Although we believe that any regulatory measures to protect retail investors are a long-term positive, markets have not seen it the same way.
After the fall, while opponents claim victory and expect a further fall, the bulls see an opportunity to buy in the long run. It is difficult to predict a fund when the markets are taken by fear. Therefore, we believe it is better to wait for markets to show signs of stabilization before attempting a purchase.
Software companies did not disappear after the dotcom bubble. The world is not finished after the 2007-2008 financial crisis. Likewise, this bear market will also pass and the strongest cryptocurrencies will rise and reward investors. Therefore, be patient and let the markets offer a relatively low risk purchase opportunity.
BTC / USD
The bitcoin dropped to a minimum of $ 4,368.69 on November 20th. The fall of the last two days gives the impression of a sale of panic by investors. Funds are usually formed after such a settlement round.
Both moving averages have been lowered, which is a negative sign. The RSI has profoundly affected oversold levels, which suggests that the sale has been exaggerated and a pullback is likely.
The bulls might try to bring the BTC / USD pair to the bearish trend line, which may prove to be an obstacle. If the downtrend line is exceeded, we expect bears to offer strong resistance in the $ 5.450 – $ 5.70 area.
The next stage down will give us a better view of the fund. If the bears are divided into $ 4,368.69, the fall may extend to $ 4,000 and below it to the main support zone of $ 3,500- $ 3,000.
On the other hand, if the bulls successfully defend $ 4,368.69, the probability that the fund will increase. It is difficult to identify the fund immediately. We can confirm a fund only with hindsight.
XRP / USD
Ripple emerged as one of outperformance during the recent fall. He extended his leadership on Ethereum after becoming the second most valuable cryptocurrency in terms of market capitalization.
The XRP / USD pair is currently finding support between the trendline and $ 0.40. Both moving averages remain flat, which indicates a limited distance action in the short term. On the upside, $ 0.519 and $ 0.565 will act as resistances.
On the downside, if bears drop prices below $ 0.40, a decline to $ 0.37185 and below that to $ 0.26913 is likely. Although we are relatively bullish on the digital currency, we will have to wait for a new configuration for purchases before proposing any trade.
ETH / USD
Ethereum extended its fall on November 20 and broke under the support of $ 136. The RSI reached oversold levels, which previously caused a pullback.
Currently, the bulls are attempting to withdraw from the $ 126.20 level, which is likely to face a stiff resistance at $ 167.32. Also 20-day downtrending EMA will be a difficult obstacle to overcome.
If the next stage falls below $ 126.20, the ETH / USD pair may extend its decline to $ 110. As the trend is declining, we will have to wait for a new reliable configuration before recommending an exchange.
XLM / USD
Stellar broke the rising channel on November 19th and followed him with another sharp fall the next day. However, the bulls managed to maintain critical support at $ 0.184.
The current pullback attempt risks tackling rigid resistance to the channel's support line and above it to the downtrend line.
If bears sink the XLM / USD pair below the critical support at $ 0.184, they can move to the next support at $ 0.13 and below that at $ 0.09.
EOS / USD
EOS broke below the critical support of $ 3,88723 and dived to a minimum of $ 3,4703 on November 20. In this way, the RSI has penetrated a deeply oversold territory that indicates that the sale has been excessive and a pullback is probable. Currently, the bulls are attempting to rise above the environmental resistance at $ 3,887. If successful, the pullback may extend to $ 4,493, which could again behave like a rigid resistance.
If the pullback stops at $ 4.1778, the bears will try again to sink the EOS / USD pair below the support at $ 3.8723. If successful, the decline may extend to the next support at $ 3. The 20-day fall EMA and the RSI in oversold territory show that bears have the upper hand.
LTC / USD
Litecoin dropped to an intraday low of $ 31.78 on November 20, which was just below our suggested $ 32 support. The model's target for a break from the downward triangle is $ 29.653. We believe the zone between $ 32- $ 29.653 will act as a strong support.
However, as the trend is declining, any retreat attempt will suffer a stiff resistance to the 20-day downhill EMA. Above this, the next major resistance will be in the $ 47,246- $ 49,466 zone.
We believe that after such a sharp fall, the LTC / USD could try to create a minimum around current levels. However, traders should expect a confirmed fund and a new purchase configuration to be formed before attempting to buy.
ADA / USD
Cardano fell in the last two days and exceeded our suggested support of $ 0.043722 and reached an intraday low of $ 0.041572. The RSI is declined deep into the oversold territory, which suggests that a pullback is behind the corner.
The pullback can bring the ADA / USD pair to the overhead resistance at $ 0.060105. However, the trend is declining, so any attempt to recover will face an obstacle to the previous support of $ 0.060105 and the 20-day EMA, which is down.
If the next leg falls below the support at $ 0.041572, the fall can extend to the next lower support of $ 0.025954.
XMR / USD
Monero is trying to find support near the $ 64.525 level. The RSI has entered oversold levels, which shows that the sale has been incessant. We believe that the bulls will attempt a withdrawal from the current levels that can bring the digital currency to head resistance at $ 81.
Bears are likely to try to lower the $ 81 XMR / USD pair. If the next leg down breaks $ 64.525, the fall may extend to $ 60 and below $ 46 levels.
Our downside view will be invalidated if the bulls will resize $ 81 and hold them up. Currently, there are no bullish schemes that suggest a purchase, so it's better to stay on the sidelines.
TRX / USD
In the last two days, TRON broke under the two critical supports of $ 0.0183 and $ 0.01587681. With the RSI falling close to 15 November 20, it shows that the sale has been exaggerated and that a rescue rally is likely.
In a declining market, any previous support acts as a resistance after it has been broken down. Thus, we expect a stiff resistance at $ 0.01587681 and $ 0.0183. If the TRX / USD pair falls from one of these levels, the bears will attempt to reduce the price to the support after $ 0.00844479.
On the other hand, if the bulls will shrink by $ 0.0183 within a few days, they will confirm that the current fall was a false break. We will wait for the trend inversion to occur before suggesting any exchange in it.
DASH / USD
The dashboard is currently exchanged within a descending channel. It broke below the critical support of $ 129.58 on November 19th and made a new 52-week low at $ 98.01 the next day. He is currently finding support at the bottom of the channel. The bulls could try to push prices above the resistance by $ 129.58. If successful, the pullback can extend to the upper end of the channel, close to $ 160.
However, as the DASH / USD pair is falling, we expect strong resistance to $ 129.58 and 20-day EMA. During the next move, if the support at $ 98.01 breaks, the next support is $ 75. Traders should wait for the trend to reverse and the bottom to form before starting any long position in it.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.