Total crypto market capitalization bounced back as low as $ 180 billion. We anticipate a strong support in the $ 168 billion to $ 183 billion range as the market cap was consolidating in this range in April of this year, before moving higher. And yes, after falling into this range the market cap has been pushed up, and it currently sits at $ 194 billion.
Even though Bitcoin is still in its downtrend, interestingly, it has not given up on its dominance in the crypto market, and remains above 66%. This shows that altcoins are unlikely to go against the main trend of Bitcoin. So, for an altcoin season to begin, Bitcoin should at least stop falling.
Data from Google Trends shows that the recent decline in Bitcoin has generated more interest among consumers as searches for Bitcoin have reached their highest level since late October. shows that market participants are viewing the current sale as a buying opportunity ahead of the upcoming Bitcoin halving next year.
Crypto market overview November 26 | Source: Coin360
We believe that the current slump is showing signs of a bear trap. However, buying in a bear market can lead to rapid losses. Hence, traders can wait for the price to stop falling and signal a reversal before buying. Join us in finding levels of transparency that traders should be wary of.
BTC technical analysis
The bulls are trying to defend the support of the descending parallel pattern. This line has acted as a strong support before, so we anticipate Bitcoin to bounce off it. If Bitcoin rallies above $ 7,337, it can rise to the 20-day EMA, from which we anticipate the price to drop once again.
Daily BTC / USD Chart | Source: TradingView
If the next dip is held above the recent low of $ 6,512, then this will be the first sign that Bitcoin has bottomed out, and could provide a buying opportunity with a better risk-to-reward ratio.
However, contrary to our assumption, if the BTC / USD pair fails to rise above the overhead resistance zone of $ 7,337 to $ 7,702, it will indicate a lack of buyers. In that case, a breakdown of Bitcoin below $ 6,512 is possible. If this level breaks, the next support is located at the 78.60% Fib retracement level of $ 5,534.
We believe that the current decline is a bear trap and a good buying opportunity for both traders and investors. However, we will wait for the decline to end and a reversal pattern to form before recommending a trade in it.
Technical analysis of ETH
The sharp plunge of ETH over the past few days has dragged the RSI into oversold territory, which shows that the selling has been overbought. The bulls are currently trying to push the price up from the lows of $ 131.
Daily ETH / USD Chart | Source: TradingView
We think the pullback will face resistance at $ 151 and above it at the 20-day EMA. If the price reverses direction from this overhead resistance and plummets below $ 131, a drop to the next support at $ 120 is possible.
Also, if the price quickly climbs up and sustains above $ 151 it will indicate that the current drop is a bear trap. We will wait for the price to sustain above $ 151 before turning positive. Above $ 151, the ETH / USD pair can rally to retest the MAs, and furthermore, the $ 197 level.
XRP technical analysis
XRP has made a new year-to-date low of $ 0.2, which is a bearish sign. A straight drop from $ 0.339 has sent the RSI into the oversold zone. This shows that the selling has been overdone and a relief rally is likely. The first level to watch in the bounce back is the 20-day EMA, which is sloping down. If the bulls can take control of this bullish run, and take XRP above the MA lines, a rally to $ 0.389 is possible. However, we think the probability of this happening is very low.
XRP / USD Daily Chart | Source: TradingView
We expect the bears to defend the 20-day EMA positively. If the next dip falls below $ 0.2, the XRP / USD pair will resume its downtrend and possibly drop to $ 0.18. Conversely, if the bulls hold the price above $ 0.22 during the next dip it will indicate that the current drop is a bear trap. We don’t find any reliable buy setups, so we advise traders to stay out of the way.
BCH technical analysis
The bulls have defended the critical support at $ 203 for the past three days. We expect the current pullback to bring Bitcoin Cash to retest the $ 241 level, however, it is likely that this level will act as a stiff resistance for BCH.
Daily BCH / USD Chart | Source: TradingView
If the price turns down from the 20-day EMA and plummets below $ 192, the downtrend will resume and the next target is $ 167. However, if the next dip is held above $ 203 it will confirm a bottom. We will wait for a confirmation of the bottom before recommending a trade in the BCH / USD pair.
LTC technical analysis
Litecoin has dipped to the low of $ 42 and the bulls have by the dip here. But we expect the bears to defend the $ 47 to $ 50 resistance zone. Above this area, the next level to watch will be the 20-day EMA.
Daily LTC / USD chart | Source: TradingView
If the price turns down from the overhead resistances, the bears will try to drop the LTC / USD pair below the recent lows. If successful, the pair can drop to $ 36.
However, if the next dip does not break below the recent low of $ 42, it could provide a buying opportunity. We shall wait for the reversal pattern to form before recommending a trade in it.
EOS technical analysis
The bulls have held the critical support at $ 2.4. EOS price has been dipped here in the previous two times. Hence we believe EOS will bounce from this level. The first level to watch on the upside will be the 20-day EMA and $ 3.69.
EOS / USD Daily Chart | Source: TradingView
On the contrary, if the bears sink and sustain the EOS / USD pair below the support at $ 2.4, then it is possible the pair will retest the yearly lows. The 20-day EMA is sloping down and the RSI is in the oversold zone, which shows that the bears are in control of the pair.
Technical analysis of BNB
Binance Coin bounced off the critical support at $ 14, which is a positive sign. It shows that the bulls are actively defending this level. The pullback can move up to the moving average and above it at $ 21.
Daily BNB / USD Chart | Source: TradingView
On the contrary, if the bears sink the price below $ 14.2, the BNB / USD pair will continue to move down. The next support on the downside is $ 11.30. The downward sloping MA and the RSI in the oversold zone show that the bears are in command. We shall wait for the pair to form a reversal pattern before recommending a trade in it.
BSV technical analysis
Bitcoin SV is attempting to recover the support at $ 92.7. This is a positive sign as it shows that the bulls are keen to initiate long positions at this level. The pullback will pick up momentum as BSV rests above the MAs. On the MAs, a rally to $ 155 is possible.
BSV / USD Daily Chart | Source: TradingView
However, we anticipate the BSV / USD pair to face stiff resistance at the MAs. If the price turns down from this level, the bears will again try to break down below the support of $ 92.7. If successful, a drop to $ 78.5 is possible. We don’t find any reliable buy setups at the current levels, hence we remain neutral on the pair.
XLM technical analysis
Stellar is looking for support in the $ 0.056 to $ 0.051 zone. This is a positive sign as it shows that the bulls are keen to buy close to critical support levels. A pullback from the current levels will face stiff resistance at the 20-day EMA.
Daily XLM / USD chart | Source: TradingView
The moving averages have completed a bearish cross in a downtrend and the RSI is close to the oversold zone, which shows that the bears have the upper hand. A break below $ 0.051 would be a huge negative as it will resume its downtrend.
Conversely, a breakout above the moving averages will be the first signal that the downtrend is over, and the XLM / USD pair can remain range bound between $ 0.051 and $ 0.088. This is a large range where a trade can be made, but we will wait for a new buy setup to form before recommending a trade in it.
TRX technical analysis
The bulls have been actively defending the support of $ 0.0136 for the past three days. Although Tron has broken below the support level, the bears are unable to take advantage of it. This shows demand at a lower level. However, with the 20-day EMA sloping down and the RSI close to the oversold territory, the advantage is on the bears.
TRX / USD Daily Chart | Source: TradingView
Any attempt to rebound from the current levels is likely to face a stiff resistance at the 20-day EMA. If the next dip can break below $ 0.0136, the TRX / USD pair can drop to $ 0.0116.
Our bearish view will be invalidated if the bulls push the price above the 20-day EMA. We will wait for the price to signal a turnaround before recommending a trade in it.
Disclamer : This is not investment advice. Investors should consider before making a decision. We are not responsible for your decision.