Bitcoin’s failure to start a strong recovery has spawned several bearish targets, which extend all the way up to $6,000 on the downside.
Although anything is possible in a bear market, traders with a long-term view can try to accumulate mainly strong coins in several tranches. Since the bottom will not be confirmed until it is too late and trying to time it is usually a futile exercise.
View daily crypto market data. Source: Coin360
In a bear market, not all currencies fall at the same time. Thus, along with keeping an eye on the broader cryptocurrency market, traders should closely monitor the currencies of their choice.
Cryptocurrencies that lead the market out of a bear phase generally tend to do well when the next bull market begins. Let’s take a look at the charts for the cryptocurrency that is trying to start an upward movement in the short term.
BTC/USDT
Bitcoin has consolidated between $15,588 and $17,622 in the past few days. The Relative Strength Index (RSI) has formed a bullish divergence, which indicates that selling pressure may decrease.
BTC/USDT daily chart. Source: TradingView
Relief rally could face severe resistance in the area between the 20-day exponential moving average (EMA) of $17,065 and $17,622. If the price falls from the upper region, the BTC/Tether (USDT) pair can extend its stay within the range for some time.
If the buyers push the price above the upper area, it would indicate that the downtrend might be over. The 50-day simple moving average (SMA) at $18,600 could act as a small hurdle, but if it is crossed, the bulls could reach the psychological level at $20,000.
Alternatively, if the price drops from the overhead resistance and breaks below $15,588, it could indicate a resumption of the downtrend. After that, the pair could drop to $13,554.
4 hour BTC/USDT chart. Source: TradingView
The moving averages on the 4-hour chart have flattened and the RSI is near the midpoint, which indicates a balance between supply and demand. This balance could tilt in favor of the bulls if they push the price above $17,000. The pair could then rise to the overhead resistance at $17,622.
Alternatively, if the price drops below $16,000, the pair could drop to the critical support area between $15,588 and $15,476. A break below this area could accelerate the selling and start the next phase of the downtrend.
DOGE/USDT
Dogecoin
dog
cursors down
$0.10
It broke above the overhead resistance at $0.09 on November 25 but the bears pulled the price back below the level on November 26. The buyers regrouped and pushed the price above the 38.2% Fibonacci retracement level of $0.10 on November 27.
DOGE/USDT daily chart. Source: TradingView
The bears may try again to stop the recovery near $0.10, but if the bulls do not allow the price to break below $0.09, the DOGE/USDT pair may gain momentum and rush towards the 61.8% Fibonacci retracement level at $0.12. If this level is also measured, the pair may continue its upward trend towards $0.16.
On the other hand, if the price falls below the current level, it will indicate that the bears will continue to view the rallies as a selling opportunity. The pair could then drop to $0.09. If this support recedes, the 50-day SMA at $0.08 could be challenged.
DOGE/USDT 4-hour chart. Source: TradingView
Buyers pushed the price above the range, which indicates the beginning of an upward movement. The strong rise pushed the RSI to deep overbought levels, indicating a slight correction or consolidation in the near term.
If the price falls from the 38.2% Fibonacci retracement level at $0.10 but bounces off the breakout level, it would indicate that sentiment has turned positive and traders are buying on dips. The bulls will then try to resume the bullish trend. The target target for the breakout from the range is $0.12.
This positive view may be invalidated in the near term if the price falls and returns to the range. After that, the pair may drop to the 50-SMA.
LTC/USDT
Litecoin’s
LTC
cursors down
$79.26
A break above the overhead resistance at $75 is the first indication of a possible trend change. The bears tried to drag the price back below $75 and trapped the aggressive bulls but the buyers held out.
LTC/USDT daily chart. Source: TradingView
The bulls will try to push the price above the general resistance at $84. If they succeed, it could signal the start of a new bullish trend. The 20-day moving average rising at $67 and the RSI near the overbought territory suggest that the path of least resistance is to the upside. LTC/USDT pair could rally towards the target target at $104.
Conversely, if the price declines from $84, the pair may slip to the $73 to $75 support area. If this area breaks down, the pair may slide to the 20-day moving average. The bears will have to pull the price below this support to trap the aggressive bulls.
If the price bounces off the 20-day moving average, the bulls will try again to push the pair above $84 and start an upward trend.
4-hour chart LTC/USDT. Source: Trade
