litecoin

Bitcoin and select altcoins are struggling to rise above their immediate resistance levels, indicating that bears remain in full control.

The sentiment across the cryptocurrency ecosystem remains fragile as market participants assess the impact of the FTX crisis on various businesses within and outside of the crypto sector. Trading firm QCP Capital said in its latest circular on Telegram that crypto assets may continue their underperformance till the new year. QCP projects Bitcoin (BTC) to plunge to $12,000 and Ether (ETH) to $800.

Looking at the brighter side, FTX could be the last major player to bite the dust during the current bear market cycle, according to CK Zheng, co-founder of crypto hedge fund ZX Squared Capital.

Zheng also added that institutional investors who have a long-term horizon may continue to invest in blockchain technology and select cryptocurrencies such as Bitcoin and Ethereum.

When the sentiment is bearish, rumors create panic among traders who dump their holdings out of fear. Usually, these occasions form a bottom. Traders may remain cautious and avoid placing large bets until the dust settles and the markets confirm a bottom.

What are the important levels to keep an eye on and which could suggest that the correction may be over? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin continues to trade below the breakdown level of $17,622, which is a negative sign. After a period of high volatility, the price has been stuck inside the range between $16,229 and $17,190.

The 20-day exponential moving average ($17,980) is sloping down and the relative strength index (RSI) is in the negative territory, indicating that bears are in control. If the price turns down and breaks below $16,229, the BTC/USDT pair could retest the Nov. 9 low of $15,588.

A break and close below this support could trigger panic selling, which could pull the pair to $12,200. On the contrary, if buyers drive the price above $17,190, it will suggest strong demand at lower levels.

The pair could then rally to the overhead resistance zone between $17,622 and the 20-day EMA. A break and close above this zone could indicate the start of a new up-move.

ETH/USDT

Ether has been gradually losing ground in the past few days. The bears may try to build upon their advantage by pulling the price below the immediate support of $1,171. If they succeed, the pair could decline to the support line of the descending channel pattern.

The downsloping 20-day EMA ($1,325) and the RSI in the negative zone indicate that sellers have the upper hand. If bears pull the price below the support line of the channel, the selling could accelerate and the ETH/USDT pair may drop to $1,000.

The first sign of strength will be a break and close above the moving averages. Such a move could open the gates for a possible rally to the downtrend line. The bulls will have to clear this hurdle to signal the start of a new up-move.

BNB/USDT

BNB (BNB) once again dipped close to the strong support of $258 on Nov. 17 but the bulls held their ground. Buyers will now attempt to start a relief rally that could reach the 20-day EMA ($291).

The downsloping 20-day EMA and the RSI in the negative territory indicate that bears are in control. If the price turns down from the current level or the 20-day EMA, the bears will make one more attempt to break the support at $258. If they can pull it off, the BNB/USDT pair could dive to $239 and then to $216.

Contrarily, if bulls push the price above the 20-day EMA, the pair could rise to the overhead resistance at $300. The bulls will have to clear this hurdle to open the doors for a possible rally to $338.

XRP/USDT

XRP (XRP) is facing selling near the downtrend line. This suggests that the bears are trying to build upon their advantage and pull the price below the immediate support of $0.36.

The downsloping 20-day EMA ($0.41) and the RSI in the negative territory indicate that the path of least resistance could be to the downside. If the $0.36 level gives way, the XRP/USDT pair could plunge to $0.32.

To invalidate this bearish view, buyers will have to overcome the stiff challenge in the zone between the downtrend line and $0.41. If that happens, the pair could pick up momentum and rally toward the 50-day SMA ($0.45).

ADA/USDT

Cardano (ADA) remains in a strong downtrend and the bears are trying to sink the price below the crucial support at $0.31. However, the bulls are likely to have other plans and they may try to defend this level aggressively.

Any relief rally is likely to face stiff resistance in the zone between $0.35 and the 20-day EMA ($0.36). If the price turns down from this zone, the likelihood of a break below $0.31 increases. The ADA/USDT pair could then plummet to the support line. This is an important level to keep an eye on because if it cracks, the next stop could be $0.25.

This negative view could invalidate in the near term if buyers push the price above the 20-day EMA. The pair could then rise to the downtrend line. A break and close above this resistance could suggest a potential trend change.

DOGE/USDT

Dogecoin (DOGE) has been trading between the moving averages for the past few days. This suggests that the bulls are buying the dips to the 50-day SMA ($0.08) and the bears are selling the relief rallies to the 20-day EMA ($0.09).

The downsloping 20-day EMA and the RSI just below the midpoint indicate a minor advantage to the bears. If the price turns down and slips below the 50-day SMA, the DOGE/USDT pair could drop to $0.07 and later to $0.06.

The bulls are likely to have other plans as they will try to push and sustain the price above the overhead resistance at the 20-day EMA. If they succeed, the pair could start a stronger recovery and rally toward $0.12.

MATIC/USDT

After trading between the moving averages for the past few days, Polygon (MATIC) closed below the 50-day SMA ($0.89) on Nov. 17. Buyers tried to push the price back above the 50-day SMA on Nov. 18 but are facing stiff resistance from the bears.

If buyers push the price back above the 50-day SMA, the MATIC/USDT pair could rise to the 20-day EMA ($0.95). The bears are likely to mount a strong defense at this level but if bulls overcome this barrier, the pair could rally to $1.05.

Alternatively, if the price fails to rise above the moving averages, it will suggest that the sentiment remains negative and traders are selling on rallies. That could increase the likelihood of a drop to the uptrend line.

Related: Binance sees record 138K BTC inflows as opinions differ on what Bitcoin price will do next

DOT/USDT

The price action of the past few days has formed a pennant, which generally acts as a continuation pattern. The downsloping moving averages and the RSI in the negative territory indicate that sellers have the edge in Polkadot (DOT).

If the price turns down and breaks below the pennant, the selling could pick up. The DOT/USDT pair could start the next leg of the downtrend on a break below $5.32. The next support on the downside is at $4.32.

Conversely, if the price continues higher and breaks above the pennant, it will invalidate the bearish setup. The pair could then rise to the 50-day SMA ($6.22). A break and close above this level could suggest that the short-term downturn could be over.

UNI/USDT

Uniswap (UNI) turned down from the 50-day SMA ($6.43) on Nov. 16 but the bulls are attempting to form a higher low at $5.66.

The bulls will have to push and sustain the price above the 50-day SMA to gain the upper hand. If they manage to do that, the UNI/USDT pair could attempt a rally to $7.36 and thereafter to $7.79.

The long wick on the Nov. 18 candlestick shows that the bears are defending the moving averages. The downsloping 20-day EMA ($6.20) and the RSI just below the midpoint suggest that bears are at an advantage. A break and close below $5.66 may clear the path for a retest of $5.14.

LTC/USDT

Litecoin (LTC) broke and closed above the 20-day EMA ($59) on Nov. 17 and the RSI jumped into positive territory, indicating that bulls have a slight edge.

The up-move is likely to face stiff resistance at $65. If the price turns down from this level, the LTC/USDT pair could again drop toward the moving averages.

Contrary to this assumption, if buyers drive and sustain the price above $65, the bullish momentum could pick up and the pair could attempt a rally to the overhead resistance at $75.

The bears are expected to defend this level with all their might. If the price turns down from $75, it will suggest that the pair may extend its stay inside the $46 to $75 range for a few more days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

The recovery in BTC and altcoins fizzled out fast, suggesting that investors continue to maintain a risk-off stance to all cryptocurrencies.

The collapse of FTX cryptocurrency exchange has created a liquidity crisis in the crypto space, which could extend the crypto winter through the end of 2023, according to a research report by Coinbase.

According to analysts, the FTX implosion could keep the institutional investors at bay because they are even more likely to tread cautiously for some time.

The crisis has negatively impacted several crypto-focused companies who have assets stuck on FTX following the company's bankruptcy filing on Nov. 11. Investors also fear the contagion could spread, causing further damage to the cryptocurrency ecosystem.

Although several investors were rattled by the collapse of FTX, billionaire venture capitalist and serial blockchain investor Tim Draper remains bullish on Bitcoin (BTC). In a Nov.15 interview with Cointelegraph, Draper doubled down on his $250,000 target for Bitcoin in 2023.

However, investors should take the price projection with a pinch of salt because it is unlikely that Bitcoin will start a roaring bull market in the near future.

What are the key support and resistance levels to watch out for on Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin broke and closed below the June low of $17,622 on Nov. 9. This marked the resumption of the downtrend. Although bulls tried to stage a strong recovery on Nov. 10, their efforts met with heavy selling above $17,622. This suggests that the bears have flipped the level into resistance.

The 20-day exponential moving average ($18,271) has turned down and the relative strength index (RSI) is in the negative territory. This suggests that the bears have the upper hand.

If the price sustains below $17,622, it will increase the prospect of a break below $15,588, If that happens, the BTC/USDT pair could extend its decline to $12,200.

Contrary to this assumption, if the price turns up and breaks above the 20-day EMA, it will suggest strong demand at lower levels. The pair could then challenge the psychological level at $20,000.

ETH/USDT

Ether (ETH) has been declining inside a descending channel pattern for the past several weeks. The failure to push the price above the channel on Nov. 4 may have led to profit-booking by the short-term traders.

The buyers aggressively bought the dip to the support line on Nov. 10 but the relief rally fizzled out near the 50-day simple moving average ($1,372). This suggests that bears are selling at higher levels.

The bears will again strive to sink the price below the channel. If that happens, the selling could intensify and the ETH/USDT pair could drop to $1,000. To gain the upper hand, buyers will have to push the price above the moving averages. The pair could then rise to the downtrend line.

BNB/USDT

BNB (BNB) soared to $398 on Nov. 8 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick. The selling continued on Nov. 9 and pulled the price near the strong support at $258.

The bulls purchased the drop on Nov. 10 but they could not thrust the price above the 20-day EMA ($295). This suggests that the sentiment turned negative and bears were selling the relief rallies to the 20-day EMA.

The bears will again try to break the support at $258 and if they manage to do that, the BNB/USDT pair could drop to $239 and later to $216. This negative view will be invalidated in the near term if bulls push and sustain the price above $313.

XRP/USDT

XRP (XRP) re-entered the $0.41 to $0.30 range on Nov. 8, indicating a lack of demand at higher levels. The selling continued on Nov. 9 and the price dropped to $0.32.

Buyers purchased the dip and tried to push the price back above $0.41 but the bears did not relent. This suggests that the bears have flipped the $0.41 level into resistance. The bears will again try to pull the pair to the critical support at $0.30.

This is an important level for the bulls to defend because a break and close below it could signal the resumption of the downtrend. On the upside, the first sign of strength will be a break and close above $0.41. The XRP/USDT pair could then rise to the 50-day SMA ($0.45).

ADA/USDT

Cardano (ADA) is in a strong downtrend. Although both moving averages are sloping down, the RSI is attempting to form a bullish divergence, indicating that the selling pressure may be reducing.

The first sign of strength will be a break and close above the downtrend line. Such a move will suggest a potential trend change. The ADA/USDT pair could then attempt a rally to $0.52.

On the other hand, if the price continues lower and breaks below $0.31, the pair could drop to the support line. This line has arrested the decline on three previous occasions, hence the bulls may again buy the dip to this level. If buyers fail to defend the level, the pair could extend its downtrend to $0.25.

DOGE/USDT

Dogecoin (DOGE) witnessed a sharp rally from $0.06 on Oct. 25 to $0.16 on Nov. 1. That pushed the RSI into extremely overbought levels, which may have tempted short-term traders to book profits.

The selling picked up momentum after bulls failed to defend the 50% Fibonacci retracement level of $0.11. Buyers defended the 50-day SMA ($0.08) on Nov. 9 but the bears halted the recovery at the 20-day EMA ($0.09).

The DOGE/USDT pair has been trading between the moving averages for the past few days. If bears sink the price below the 50-day SMA, the pair could complete a 100% retracement and drop to $0.06. Contrarily, a break above $0.10 will suggest that the bulls are back in the game. The pair could then rise to $0.12.

MATIC/USDT

Polygon (MATIC) soared above the overhead resistance of $1.05 on Nov. 4 but the rally met with stiff resistance at $1.30 on Nov. 5. Buyers tried to resume the up-move on Nov. 7 but could not clear the overhead hurdle.

The bears sold aggressively on Nov. 8 and 9 and pulled the price below the moving averages but the buyers held the uptrend line. The MATIC/USDT pair rebounded sharply on Nov. 10 but the bears sold at higher levels and pulled the price back below the 20-day EMA ($0.96) on Nov. 12.

If the price slides below the 50-day SMA ($0.89), the pair could drop to the uptrend line. A break below this support could open the doors for a retest of the crucial support at $0.69. On the contrary, if buyers push the price above the 20-day EMA, the pair could rise to $1.05.

Related: Bitcoin price dips to $16.4K over Genesis woes as execs defend GBTC

DOT/USDT

Polkadot (DOT) plunged below the strong support zone of $6 to $5.68 on Nov. 9. This indicates the resumption of the downtrend.

Buyers attempted to push the price back above $6 and trap the aggressive bears but the sellers held their ground. This indicates that the bears are trying to flip the $6 level into resistance.

The downsloping 20-day EMA ($6.12) and the RSI in the negative territory indicate advantage to the bears. The sellers will make one more attempt to pull the DOT/USDT pair below $5.32. If they succeed, the pair could extend its decline to $4.32. To invalidate this negative view, the bulls will have to push and sustain the price above the moving averages.

UNI/USDT

Uniswap (UNI) had been trading between $5.14 and $7.36 for the past several days. Buyers drove the price above the resistance on Nov. 4 but could not build upon this advantage. The bears pulled the price back into the range on Nov. 6.

This may have trapped the aggressive bulls who then rushed to the exit. Long liquidation and selling by the bears pulled the price below the support of $5.14 on Nov. 8 but this proved to be a bear trap. The bulls bought the dip and pushed the price back into the range on Nov. 10.

The recovery is facing stiff resistance at the moving averages, indicating selling at higher levels. The bears may again attempt to sink and sustain the price below the range but the bulls are expected to defend the support aggressively.

This suggests that the UNI/USDT pair may remain range-bound between $4.71 and $7.79 for a few more days.

LTC/USDT

Litecoin (LTC) has been range-bound between $46 and $75 for the past several weeks. The failure of the bulls to push the price above $75 on Nov. 7 may have attracted profit-booking by short-term traders. That pulled the price near the support of $46 on Nov. 9.

When the price is stuck inside a range, traders generally buy the dips to the support level and that is what happened on Nov. 10. The LTC/USDT pair continued its rise on Nov. 11 but met with strong selling near $65. This suggests that bears are active at higher levels.

The flattish moving averages and the RSI near the midpoint indicate a balance between supply and demand. This indicates that the pair could trade in a tight range between $53 and $65 for some time.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.