Bitcoin and most altcoins have recently been shaken after a sharp decline in the crypto money market and suffered huge losses. So much so that the leading cryptocurrency suffered a loss of about $ 11,000 and fell to $ 42,000 levels.
During the recent decline, Ethereum (ETH) continued to outperform Bitcoin. While Bitcoin’s market dominance fell below 41%, Ethereum continued to gain ground and market dominance rose above 21%.
Some analysts believe that Bitcoin’s recent decline could lead to a long consolidation phase. So can Bitcoin hit rock bottom again in the next few days? Let’s analyze the top 5 cryptocurrencies that can take the markets higher. Bitcoin (BTC)
Bitcoin, the leading cryptocurrency, received strong support from the 100-day simple moving average ($54,496) at the end of September, making it an important support for the bulls’ defense.
However, the bears pushed the price below the 100-day SMA on December 3, which resulted in a panic selling. With the panic selling, the BTC/USDT pair fell to $ 42,000 on December 4.
The falling 20-day exponential moving average ($56,219) and the relative strength index (RSI) near the oversold zone suggest that the bears have the upper hand. If the pair continues to decline from current levels, the next stop could be the strong support at $40,000.
However, if the situation reverses and the price moves up from the current level, the pair could rally to the 100-day SMA, which could be a strong obstacle. A break and close above this level will be a sign that a stronger recovery may be possible. Ethereum (ETH)
Ethereum, the largest altcoin, managed to perform quite well after the sharp decline. The bears pulled the price as high as $3,500 on Dec. 4, but failed to do more. In addition, the bulls have aggressively bought this decline, as seen from the long tail in the daily candle.
If the bulls manage to hold the price above $3,900, the ETH/USDT pair could rally to the 20-day EMA ($4,326). In addition, a break above this level and a daily close could pave the way for a possible rally to the all-time high of $4,868.
In this case, the bulls will have to overcome this obstacle to signal the resumption of the uptrend.
However, if the opposite happens, and if the price breaks below the current level, the bears may make one more attempt to keep and sustain the pair below $3,900. If the bears are once again successful in this region, Ethereum could fall to the strong support at $3,400. Polygon (MATIC)
On the other hand, when we look at the Polygon (MATIC), MATIC has been trading in an increasing channel pattern for the past few days. The bulls pushed the price above the resistance line of the channel on December 3 but were unable to sustain higher levels.
In addition, the MATIC/USDT pair fell to the 100-day SMA ($1.54) with the last decline, but buyers were active in this region and successfully bought this decline.
Looking at the MATIC chart, the 20-day EMA ($1.85) is rising and the RSI is in positive territory. Therefore, this gives an advantage to the buyers. If the current recovery in Polygon price continues, the bulls may try to push the price above the resistance line again. In addition, a break below the 50-day SMA ($1.76) and a close can push the price up to the 100-day SMA.
But if the bears break the price below the 20-EMA, the pair could decline to the 50-SMA and then to the 100-SMA. A break below this support could open the doors for a decline to $1.54.
But if the opposite happens, i.e. if the price bounces back from the 20-EMA, the bulls will attempt to push MATIC above $2.21 again. Therefore, if the bulls succeed in this region, the pair can rise to $ 2.40. The bulls will have to overcome this general hurdle to push the pair to its all-time high of $2.70. Algorand (ALGO)
On the other hand, Algorand (ALGO) fell below the critical support on December 4. But the bulls have aggressively bought the decline as seen from the long tail in the candle and will now struggle to push the price above the moving averages again.
If this move of the bulls is successful, the ALGO/USDT pair may rise to the resistance line. However, this level is an important level that bears should defend because a break above it can override the descending triangle pattern. Therefore, the pair can rally to $2.36 and then to $2.55.
But if the bulls fail to succeed in this region and the price breaks down from the moving averages, this could be an indication that the bears are selling in rallies. Therefore, after the bears’ selling pressure, the pair may retest the support at $1.50. A break and close below this level will complete the bearish set-up, resulting in the price falling as low as $0.80. Elrond (EGLD)
Finally, Elrond bounced back from an all-time high of $224.62 on Dec. 4, completing a 100% correction of the last leg of the rally.
The bulls are currently trying to defend the bullish line and push the price above the 50-day SMA ($324). So the success of the bulls in this region could push the price as high as the 20-day EMA ($364), where the bears could form a hard resistance again. If the bulls manage to overcome this obstacle, the pair can rise to the $425 levels.
However, if the opposite happens and the price breaks below the 100-day SMA ($271) and closes, the EGLD could extend its decline to $200.