Bitcoin, Ripple, Ethereum, Bitcoin Cash, Stellar, EOS, Litecoin, Cardano, Monero, TRON: Price Analysis, Nov. 26
Rampant selling in recent weeks dragged total market capitalization from above $210 billion on Nov. 14 to just below $116 billion on Nov. 25.
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Market data is provided by the HitBTC exchange.
The digital currencies were relatively stable from early September of mid-November, after which the decline started. Since then, incessant selling dragged the total market capitalization of cryptocurrencies from above $210 billion on Nov. 14, to just below $116 billion on Nov. 25, a fall of close to 45 percent.
After such a waterfall decline, an equally sharp pullback is probable. However, the markets will not switch over from a strong bear phase to a bull phase instantly. Mike Novogratz, ex-Goldman Sachs partner and founder of Galaxy Digital, believes that the cryptocurrencies will stage a turnaround next year.
While the fall has hurt traders’ accounts, it has not stopped the adoption of cryptocurrencies. In an apparent first, businesses in the U.S. state of Ohio will be able to pay their taxes in Bitcoin. This facility may possibly be extended to the individual taxpayers in future, according to the Wall Street Journal (WSJ).
Bitcoin dropped to a low of $3,620.26 on Nov. 26, from where the bulls attempted a pullback that hit a roadblock just above the $4,200 level. Currently, the bears are attempting to resume the downtrend. The zone between $3,000–$3,500 is an important support and we expect it to hold.
The fall in the last few days has plunged the RSI into deeply oversold levels. Though in a bear phase the RSI frequently stays close to the oversold zone, a reading of 11 on the RSI indicates capitulation.
Usually, such a sharp decline is followed by an equally sharp throwback rally. The BTC/USD pair will face minor resistance at the downtrend line but we expect it to be crossed. The upside targets are a pullback to 38.2 percent Fibonacci retracement level of $4,712.89 and a 50 percent retracement level of $5,050.40. The 20-day EMA is also just above this level and might act as a stiff resistance.
It is difficult to trade the rebound, hence, only experienced traders willing to take a risk should attempt to go long, if the virtual currency sustains $4,250 for about four hours. The stop loss can be kept just below $3,500. As this is a risky trade, use only 30 percent of the usual allocation. On the downside, if the digital currency breaks below $3,620.26, a fall to $3,000 is likely.
Ripple broke below the support of $0.37185 on Nov. 25, but buying at lower levels helped it recover most of the intraday losses. The bears are currently attempting a sell off once again.
If successful, the XRP/USD pair can decline to the support line of the channel, which will act as a strong support. However, if the level fails to hold, a retest of $0.24508 is possible.
On the other hand, if the bulls push prices above $0.37185, a pullback will begin that can extend to $0.43 where we anticipate a strong resistance from the 20-day EMA. We do not find any buy setups; hence, we are not suggesting a trade in it.
The buyers seem to have deserted Ethereum because there is not even a reasonable attempt to pullback after such a decline.