Bitcoin (BTC) rally above $ 20,000 will have to wait as the price underwent a strong correction and never reached a new high.

The data shows that the whales decided to take a profit when bitcoin approached $ 19,000, driving the price down. This drop could have liquidated positions in the futures market with over-indebted funds and exacerbated the decline.

The current correction is a good sign, as the cryptocurrency market has warmed up when several cryptocurrencies were combined vertically last week. While some altcoins brought back much of the past, Bitcoin remains strong, indicating that investors are buying support at lower levels.

Mike Novogratz, founder and CEO of Galaxy Digital, recently said that Bitcoin is attracting institutional investors because it is seen as a defense against the devaluation of the fiat currency. Novogratz suggested that investors keep between 2% and 3% of Bitcoin’s net worth for a long-term purpose, as he believes that within five years the value of Bitcoin will be much more.

However, traders should wait for price to stabilize and form the base before buying, as it can be dangerous to try to catch a falling knife. Traders can look for price action near critical support levels and then consider buying if it remains stable.

Let’s analyze the top 10 digital currencies to identify key support levels that can attract buyers.

Bitcoin / USD
Bitcoin (BTC) fell from $ 19,458.56 on November 25, and was sold on November 26, sending the price below the 20-day exponential moving average ($ 17,048) for the first time since October 8.

The bulls defended the 38.2% Fibonacci retracement at $ 16.049.61 on November 26th, but are struggling to keep the price above the 20 day moving average. This indicates that traders are selling in groups.

If the bears dip below $ 16,049.61, the next support is likely to be a 50% retracement level at $ 14,996.59, just above the 50-day simple moving average of $ 14,535. Strongly.

The 20 day moving average has flattened and the Relative Strength Index (RSI) near its midpoint is indicating a short term zone formation.

Ether (ETH) fell from the top of stiff resistance at $ 625 on Nov.24 as traders announced their earnings. Selling intensified on November 26, with the biggest alternative breaking below the 38.2% Fibonacci retracement level at $ 526,348, and the 20-day moving average to $ 504.

The bulls bought the lower at a break of $ 488,134, as evidenced by the long tail of the November 26 candlestick. However, the bulls struggle to retain income as traders sell smaller batches.

If the bears dip below $ 488.134, they may fall to the 61.8% Fibonacci retracement level at $ 466.755. A breakout without this support would shift the advantage in favor of the bears.

On the other hand, a strong bounce from the current level or support at $ 466,755 should indicate demand at lower levels and could hold the ETH / USD range for several days.

XRP / US Dollar
After a long week on November 24, the XRP candlestick formed a candlestick pattern for November 25, which closed in red. This showed that the bulls have taken profits after a sharp rally in recent days.

The XRP / USD pair fell to the 61.8% Fibonacci retracement level at $ 0.438968 on November 26th, but the long tail of the candlestick is showing trading at lower levels.

However, bears are unlikely to give up the advantage. They are being sold in groups and today the pair has formed a doji candlestick pattern. This indicates that the pair may consolidate in a certain area several days before the next trend.

Bitcoin Cash (BCH) fell sharply on November 25 and 26 and completed a 100% retracement of the final part of the trend that began on November 20.

Despite buying the bulls on Nov 26, the price has dropped today from the 20-day moving average ($ 277). This indicates that sentiment has changed from buying in the fall to selling collections.

The bear will now try to push the price below the 231 support level. If this happens, the BCH / USD pair might fall as low as $ 200. Conversely, if the bulls push the price above $ 280, the pair might go up to $ 300.

Link / USD
The bulls failed to reverse support at $ 13.28 (neck inverted head and shoulder pattern) on November 26th. This boosted more sales and dropped Chainlinks below the moving average.

Source: CoinTelegraph