The price of Bitcoin faces a level of USD 14,000 and this causes several crypto currencies to fall below their support levels.
China’s central bank governor, Yi Gang, said the country’s digital yuan pilot projects have processed transactions worth more than $299 million without major problems. This suggests that China is well ahead of its competitors in the development and study of the central bank’s digital currency (CBDC).
However, the European Central Bank does not want to be left behind. The President of the European Central Bank, Christine Lagarde, invited the audience to comment on whether they „would be happy to use a digital euro in the same way as they use a euro coin or a euro note“.
Another central bank that is trying to keep up is the Reserve Bank of Australia. The central bank partnered with banks, financial institutions and software companies to study the „implications of a CBDC for efficiency, risk management and innovation in wholesale financial market transactions,“ said RBA Assistant Governor Michele Bullock.
The news that several nations are contemplating the launch of a CBDC is positive in the long term, but this news may not affect short-term price action, which is dictated by market sentiment.
Let’s study the charts for the top 10 Crypto Cash currencies to find out if the sentiment is to buy the falls or sell the rallies.
The failure of Bitcoin (BTC) to rise above the $13,973.50 upper resistance in recent days may have attracted the profit reserve of some short term traders and the short positions of aggressive down movers
However, the positive signal is that the bullish side is not allowing the bearish side to get away with it. The long tail of the candle suggests buying at lower levels.
If the BTC/USD rises from current levels, then the bulls will make one more attempt to push the price above the $13,973.50-$14,101.91 resistance zone. If they are successful, the uptrend could resume.
Although both moving averages are rising, the downward divergence in the relative strength index suggests that momentum has weakened. A break below the 20-day exponential moving average ($12,819) will be the first sign of strength for the bearishers.
If bearishers can capitalize on this strength and push the pair below $12,460, then a deeper correction to the 50-day simple moving average ($11,567) is possible.
The bulls had pushed Ether (ETH) above the downward trend line today, but could not sustain the higher levels. This suggests that the bearish players are selling into smaller rallies. The bearishers have dragged the price back to the 20 day EMA ($386).
A breakout and a close below the 20-day EMA could drag the price back to the uptrend line. The 50-day EMA ($371) is close to this support, therefore it is likely that bullish players will defend this level aggressively.
If the ETH/USD bounces off the uptrend line, bullishers will once again attempt to push the price above the downtrend line and the $405 upper resistance. If they are successful, the possibility of a rebound will increase to $420 and then $450.
Conversely, if the bearishers sink the price below the uptrend line, a drop to $360 and then to $333 is possible.
Flat moving averages and RSI near the midpoint suggest a supply/demand balance. This suggests an equal opportunity for the upside and downside to tilt the advantage in their favour.
The rebound from the $0.2295 support in XRP hit a barrier in the moving averages and the price dropped from there. Beacons are attempting to sink the altcoin below the $0.2295-$0.219712 support area.
If they succeed, the XRP/USD could start a new downtrend that could reach as high as $0.19. The 20-day declining EMA ($0.24) and the RSI below 38 suggest that the bearishers are in control.
However, if the bulls can defend the support zone and push the pair back above the moving averages, it will suggest accumulation at lower levels. In such a case the pair may remain within the range for a few more days.
Bitcoin Cash (BCH) fell once again from the $272 resistance and the bears are attempting to bring the price below the 20-day EMA ($258.58) and immediate support at $253.14.
If the bearish move is successful the BCH/USD could fall to the next support level at the 50 day SMA ($240.57).
Although moving averages continue to rise gradually, the RSI has broken from a symmetrical triangle and has fallen near the midpoint. This suggests that the bearish momentum is trying to return.
This bearish view will be invalidated if the pair bounces off the 20-day EMA and breaks above the $272 to $280 resistance zone.
The bulls pushed Chainlink (LINK) above the 20-day EMA ($11.21) on November 1, but were unable to take advantage of this momentum. Today, the price has fallen back below the 20-day EMA and the bearishers are trying to break the support at the 50-day SMA ($10.51).
A collapse and a close below the uptrend line will be the first sign that the bears are back in action. There is less support at $9.7665, but if the bears can push the price below it, there will be a drop to $8.3817 on the cards.
This bearish view will be invalidated if the LINK/USD pair rises from current levels or bounces off the uptrend line and rises above $12. Such a move could result in a rally to $13.28.
The flat moving averages and RSI below the midpoint suggest a supply/demand balance. Therefore neither the upside nor the downside have a clear advantage.
Binance Coin (BNB) has been trading near the 50 day SMA ($28) for the past three days, which suggests that the bulls are trying to defend this support. However, it is unlikely that bears will easily give up their advantage.
They sold the 20 day rally to the EMA ($29) today and are currently trying to bring the price below the support zone from $28.42 to $27.51. If they can do so, the BNB/USD could fall to $24.86.
The 20-day declining EMA and the RSI below 43 suggest that the bearish move has the advantage. However, if the bearishers fail to capitalize on the advantage, the bulls will again attempt to push the price above the 20-day EMA. If they succeed, the pair could rise as high as $32.
Litecoin (LTC) fell once again from just above the $56.50 level today, suggesting that the bears are defending this resistance. Sellers will now attempt to sink the altcoin below the $52.36-$51 support.
If they can do that then the LTC/USD could fall to the 50 day SMA ($49) and if this support is also broken then the decline could extend to $46.
However, it is likely that the bulls will buy the drop to the support zone. The 20-day flat EMA ($53) and RSI just above the mid-point suggest a limited range action for a few more days.
The advantage will tilt in favour of the bulls if they can push and hold the price above $56.50.
The rebound from the $3.80 support at Polkadot (DOT) was off at the 20 day EMA ($4.22). Beacons will now attempt to push the price below the immediate support at $3.80. If that happens there will be a drop to $3.5321 on the cards.
The 20-day EMA has begun to fall and the RSI is in negative territory, suggesting a slight advantage for the bearishers.
If the bearish move can get the price below $3.5321, the DOT/USD could begin a new downward trend that could reach $2.60 and then $2.0.
Contrary to this assumption, if bullishers defend the $3.80-$3.5321 support zone, the pair may remain within the $3.5321-$4.6112 range for a few more days.
The failure of the bullish market to push Bitcoin SV (BSV) above the 20-day EMA ($166) in the last three days shows a lack of demand at higher levels. This has attracted sell offs from bearish market players who are currently trying to drive the price below the uptrend line.
If they are successful, the BSV/USD could fall to the $146.20-$135 support zone. A breakout from this zone could result in a panic selling that could initiate a new downtrend. The next support level for the pair is $100.
However, if bullishers defend the support area, the pair could remain within the $146.20 to $180.63 range for a few more days.
The rebound from support at $0.0893 in Cardano (ADA) was down from the 20-day EMA ($0.10). This is a negative signal as it shows that the bears are selling on rallies.
If the bearish move takes the price below $0.0893, the ADA/USD could fall to critical support at $0.07555701. The 20-day declining EMA and the RSI in negative territory suggest that the path of least resistance is downward.
Contrary to this assumption, if the pair rebounds off the $0.0893 support, it will suggest that bullish momentum is building closer to this level. A break above $0.104044 will be the first sign that the bulls are attempting to return.