The Top 3 Cryptocurrencies to Observe This Week

Bitcoin Seems to be ready to recover critical support level which may affect some altcoins like BNB and SAND

Most major altcoins, including Bitcoin (BTC), have had difficulty recovering from the severe drop seen on Nov. 26. There is some uncertainty relating to the new heavily-mutated coronavirus strain detected in South Africa, which may be making traders nervous to purchase at current levels.

A recent report from CryptoCompare shows that Bitcoin’s assets under management decreased 9.5% to $48.70 billion in November. However, the AUM in cryptocurrency funds that use altcoins shot up 5.4% to $16.60 billion.

The CEO and founder of Celsius, Alex Mashinsky, stated that the recent decline is an opportunity to buying. In Addition, he reported on Nov. 28 that he had “bought almost $10 million worth of Bitcoin and Ether at the current level“, anticipating Bitcoin to reach $70,000 by the end of 2018.

If BTC recovers anytime soon, some altcoins may also recover and attract the investors attention, and those are the top 3 altcoins to observe this week:

Bitcoin (BTC):

Since a few days ago, Bitcoin has been correcting in a descending channel. After the 100-day simple moving average ($54,064) has been in the spotlight for the past two days, bulls have been trying to hold that level. However, the lack of urgency to accumulate at the current level is evident from the shallow bounce.

The Relative Strength Index (RSI) and the declining 20-day exponential moving average ($58,521) below 39 indicate that bears are in control. However, bulls may run into a wall at the 20-day EMA if the price rebounds off the current level. Moreover, the prospects of a break below the 100-day SMA may increase if the price declines from the 20-day EMA. In this case, the pair could challenge the channel’s support line and the BTC/USDT pair could fall to $4000 if the channel breaks below. However, the bulls must push the price and keep it above the channel to indicate that the end of the correction.

Binance Coin (BNB):

BNB is facing a grapple between the bears and the bulls near the 20-day EMA ($590). However, on Nov. 26 the price decreased and closed less than the 20-day EMA, but the bears could not build upon this advantage.

It is possible that the BNB/USDT pair will again rally to the overhead resistance zone of $669.30 to $691.80 if bulls push the price above $621.30. Alternatively, the pair could decline to the 50-day SMA ($546) if the price turns down and closes below the 20-day EMA, also a break and close under this support could extend the pullback to the 100-day SMA ($487) and then to $440.

The Sandbox (SAND):

As of late, SAND has been correcting the recent strong up-move. However, the bulls are trying to arrest the pullback in the range between the 38.2% Fibonacci retracement level at $6.02 and the 50% retracement level at $5.26.

If the price recovers from the current level and rises, this will represent that sentiment remains positive and the bulls will then attempt to keep the price at $8.48 above the overhead resistance. In addition, the SAND pair may keeps its up moving with the next target at $10.52 if they succeed.

The opinions shown in this article are made upon the author perspectives. Moreover, each trading made or investment includes risks, and you should definitely conduct your own research when making a decision.

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