Bitcoin (BTC) and most altcoins plummeted on December 4 as the cryptocurrencies derivatives markets experienced massive deleveraging.
Moreover, 24 hours, data suggests that more than $2.5 billion in cryptocurrency was liquidated. Ether (ETH) has consequently outperformed Bitcoin (BTC) during the recent fall.
While Bitcoin’s market dominance has fallen below 41%, Ether’s market dominance has subsequently risen above 21%.
However, some analysts believe Bitcoin’s recent decline will result in a lengthy period of consolidation. Filbfilb, the co-founder of Decentrader, believes Bitcoin will consolidate well into the first quarter of next year.
CIO Lex Mskovski of Moskovski Capital moreover anticipates a “slow grind up.” Let us discuss some of the top cryptocurrencies showing great potential.
Top Cryptocurrencies to Watch Out for This Week
1. BTC/USD
In September Bitcoin had strong support at the 100-day simple moving average ($54496), making it an essential aid for bulls.
The bears, on the other hand, had other plans. On December 3, the bears drove the price below the 100-day simple moving average, potentially triggering several stop-loss orders.
Panic selling ensued, and the BTC/USDT exchange fell to $42,000 on December 4. The bulls bought this drop with vigor, as evidenced by the candlestick’s long tail.
ETH/USDT For the past few days, Ether (ETH) has been trading in a range of $4,868 to $3,900. Although bears drove the price below the range on December 4, they were unable to keep the price there. As evidenced by the day’s candlestick’s long tail, the bulls aggressively bought this dip.
2. ETH/USDT
For the past few days, Ether (ETH) has been trading in a range of $4,868 to $3,900. However, since the bears drove the price below the range on December 4, they were unable to keep the price there. As evidenced by the day’s candlestick’s long tail, the bulls aggressively bought this dip.
Contrary to popular belief, Bears will additionally attempt to keep the pair below $3900 if the price falls from its current level. If they succeed, the pair’s earnings could drop to $3,400.
3. MATIC/USD
Polygon (MATIC) has been trading in an ascending channel pattern for the past few days. The bulls subsequently drove the price above the resistance line on December 3, but it could not sustain these higher levels. This could have resulted in profit-booking in December.
Despite the fact that the MATIC/USDT currency pair fell to the 100-day simple moving average ($1.54), buyers took advantage of the drop. Today’s candlestick has a long wick, indicating that bears may be selling near the resistance line.
4. ALGO/USDT
On December 4, Algorand (ALGO) conversely fell below $1.50 support, but the bulls aggressively purchased it, evidenced by the candlestick’s long tail. The bulls will now attempt to drive the price above the moving averages.
The ALGO/USDT pair may break through the resistance line if this happens. However, a break below this level would invalidate the descending triangle pattern, so the bears must defend it. The pair can additionally rise to $2.36, then to $2.55.
5. Elrond (EGLD)
The sharp rise in Elrond (EGLD) from $287 on November 17 to an all-time high of $544.25 on November 31 pushed the RSI well into the overbought zone. Vertical rallies are typically followed by waterfall declines, which have occurred in recent days.
The EGLD/USDT pair fell from an all-time high to $224.62 on December 4, completing a 100 percent retracement of the most recent leg of the rally.
Do Your Own Research
As we all know, cryptocurrency keeps changing every now and again for this sole reason; however, be sure to conduct extensive research and be aware of the rise and fall of cryptocurrency to avoid making huge mistakes that may cause significant losses.