With the announcement of US President Biden, the crypto currency markets are retreating under the leadership of Bitcoin. BTC price at the time of writing, it had slackened to $55,900. Of course, the losses suffered by the largest crypto currency have a multiplier effect on the altcoin markets. Many altcoins have loosened up to the support zone. So is this a buying opportunity?
As you can see from the table below, the markets have literally turned blood red. A small number of altcoins dominate the decline in general, except for, if Bitcoin If it falls below the 55.000 level, it is worried that the losses will deepen.
The price was fixed below $60,000 due to continued sales pressure. The S&P 500 is dominated by U.S. President Joe Biden’s Jerome Powellhe set a new all-time record today on reports that he is running for Fed chair for the second time. This news also includes the US dollar currency index (DXY), which raised it to its highest level since July 2020. Of course DXY and BTC price it is inversely proportional, and this is what is driving down the BTC price. DXY rose about 2.3% in November, while Bitcoin fell roughly 5.5% over the same period.
TechDev, Bitcoinhe said that the ‘s performance in 2021 follows the 2017 price movement, but there is a delay of 5-8 days. If the correlation continues, it is likely that the eagerly awaited boom phase in Bitcoin will occur. Could the current decline be the last one before the resumption of the uptrend, or is the decline the beginning of a sharper correction?
BitcoinOn November 19, the recovery of $55,600 enabled it to reach the 50-day simple moving average on November 20. But the bulls could not overcome this obstacle, the current situation shows that the bears are trying to turn the 50-day SMA into resistance.
RSI confirms the sales pressure. If the price falls below the 55.600 dollar, we can see the beginning of a deeper correction to the 52.500 to 50.000 dollar support zone. Fortunately, we haven’t seen below 55,900 so far.
In a positive scenario, we may witness a rally that will be decimated between $67,000 and $69,000.
I ethereu (ETH)
The price, which bottomed at $3.956 a few days ago and rose above the 20-day exponential moving average (4.364), is trying to maintain its 4.000 support. It can be considered positive that the price has not sagged below $ 4,000 at the moment. The bears pulled the price below the 20-day EMA on November 21.
Ethereum it fell to the 50-day SMA (4.240) today, but the long tail on the candlestick suggests that the bulls are defending this support. If buyers raise the price above $4,451, the pair may rise to a Fibonacci retracement level of 61.80% from $4,519 and then to a retracement level of 78.60% from $4,672.
On the contrary, if the price drops from the current level, the bears will try to lower the pair below the 50-day SMA again. If they are successful, the pair may fall to $ 3.956. A fracture and closure below this level will complement the head and shoulder model. The pair could then fall to $3,400 and eventually the model target of $3,047.
Binance Coin (BNB)
Binance Coin (BNB), rebounded from the 50-day SMA (526) on November 19, but the bulls were unable to extend the rally above the 61.8% Fibonacci correction level at $602.40.
The bears have pulled the price below the 20-day EMA (585) today. If the price remains below the 20-day EMA, the bears will make another attempt to lower the price below the 50-day SMA. If it succeeds, we can see $485.