Top 5 cryptocurrencies to watch this week: BTC, DOT, LUNA, AVAX, EGLD

Bitcoin (BTC) dominance has dropped from around 48% on Oct. 20 to 42.3% on Nov. 7, while the total cryptocurrency market capitalization has continued to move upwards. This suggests that price action has shifted from Bitcoin to altcoins.

CryptoQuant CEO Ki Young Ju said that Bitcoin whales are selling, but this has not led to a drop below the strong support level of $60,000. He also noted that bitcoin reserves on exchanges have continued to dwindle, indicating strong demand from buyers.

According to a PlanB survey, most market participants remain bullish on Bitcoin and expect a rally to $288,000 by early 2022.

Real Vision founder Raoul Pal also predicted a bullish outlook for cryptocurrencies in an interview on Nov. 3. He said the current bull market is unlikely to peak this December and could extend into between March and June next year. Pal expects the possible launch of ethereum 2.0 and the possibility of approval for an ethereum (ETH) exchange-traded fund in the first half of 2022 to attract institutional investors and spark a surge.

Against this bullish backdrop, let’s analyze the charts of the top five cryptocurrencies that are likely to remain in the spotlight and outperform in the short-term.

BTC/USDT

Bitcoin broke out of a bullish pennant pattern on Nov. 2, but buyers were unable to capitalize on the move and push the price above the overhead resistance zone of $64,854 to $67,000. This shows that the bears have not given up yet and are trying to halt the advance.

However, in a positive sign, the bulls are aggressively defending the 20-day exponential moving average (EMA, $60,794). The buyers will make another attempt to push the price above the overhead resistance zone.

If they can succeed, the bullish momentum could pick up and BTC/USDT could rise towards the pattern’s target of $89,476.12.

This bullish view will be invalidated if the price breaks out and falls back into the pennant pattern. BTC/USDT could then drop to the 50-day simple moving average (SMA, $54,883). The area between the 50-day simple moving average and $52,920 is likely to attract strong buying support from the bulls.

The 4-hour chart shows BTC/USDT oscillating between $63,732.39 and $59,500. A flat moving average and a relative strength index (RSI) just above the midpoint point to a balance between supply and demand.

If the price bounces off the moving averages, the bulls will again attempt to propel the price above the overhead resistance zone between $63,732.39 and $64,270. If they can do this, BTC/USDT could retest all-time highs.

Conversely, a break below the moving averages could drag BTC/USDT down to the strong support zone of $59,500 to $58,000. If this area is broken, the bears will have the upper hand. Then BTC/USDT could correct to $55,267.61.

DOT/USDT

DOT surged and broke the overhead resistance at $49.78 on Nov. 1. The RSI broke the downtrend line, invalidating the negative divergence. This indicates the resumption of the uptrend.

The bears attempted to pull the price back below the Nov. 6 breakout level, but the long wicks suggest that the bulls are buying on dips. The rising moving averages and RSI close to the overbought zone suggest that the path of least resistance is upward.

If the bulls push the price above $55.09, DOT/USDT could rise to $63.08. The bears may have other plans and they will attempt to sink the price below the breakout level of $49.78. Such a move would indicate a lack of buyers at higher levels.

A break above and close above the 20-day EMA ($46.82) would be the first sign that the bulls may be losing control and DOT/USDT could then drop to the 50-day EMA ($38.54).

The 4-hour chart shows that DOT/USDT is rising within an ascending channel. Although the bulls pushed the price above the channel, they failed to build an advantage there. This shows that the bears are aggressively defending this resistance level.

DOT/USDT bounced off the centerline of the channel and the bulls will again try to clear the hurdle above. If they succeed, DOT/USDT may regain momentum.

Alternatively, if the price turns down from current levels or overhead resistance and breaks below the center line, DOT/USDT may drop to the support line. A bounce off this level will keep the uptrend intact, but a break below this level will signal a possible change in trend.

LUNA/USDT

Terra protocol’s LUNA token broke out and closed above the overhead resistance at $49.54 on Nov. 4. Bears attempted to pull the price back below the breakout level on Nov. 5 and 6, but were unable to sustain lower levels. This shows that the bulls are buying on dips.

If the bulls push the price above $53.18, LUNA/USDT may rally towards the wedge resistance line, where the bears are expected to form a strong resistance. The bullish momentum could pick up if the bulls push the price above the wedge.

Alternatively, if the price turns down from current levels or resistance above, LUNA/USDT could fall to the support line of the wedge. A breakout and close below this support line would signal a possible change in trend. Then LUNA/USDT could drop to $35.

The bulls pushed the price above the resistance line of the triangle, showing that they have overcome the resistance from the bears. The sellers attempted to pull the price back inside the triangle, but the bulls aggressively defended the breakout level.

Both moving averages on the 4-hour chart are sloping upwards, and the RSI is in positive territory, suggesting a favorable position for the buyers. If the bulls push the price above $53.18, LUNA/USDT could rise towards the pattern target of $62.59.

AVAX/USDT

After trading near the overhead resistance at $79.80 for the past three days, Avalanche (AVAX) has broken above this resistance. This points to a possible resumption of the uptrend.

The rising moving averages and RSI in the overbought zone suggest that the bulls are in control. If the price sustains above $79.80, AVAX/USDT could rise to $93.04 before attempting to challenge the psychological $100 level.

Contrary to this assumption, if the price turns down from current levels and falls back below $79.80, it will indicate that the market has rejected higher levels. Then AVAX/USDT could drop to the 20-day EMA ($69.51).

The 4-hour chart shows the formation of a rounding bottom pattern, which completed on a breakout and close above $79.80. If the bulls sustain the price above $79.80, AVAX/USDT could start heading north towards the pattern target of $108.56.

The first important level to watch on the downside is $79.80. A bounce off this level will indicate that the bulls are aggressively buying the dip, which will increase the probability of a resumption of the uptrend.

Conversely, if it breaks below $79.80, AVAX/USDT could drop to $72. A break below this support will indicate that the bears are back in the game.

EGLD/USDT

Elrond (EGLD) broke its previous all-time high of $303.03 on November 3, which is a positive sign. The bears tried unsuccessfully to pull the price back below the breakout level on Nov. 5 and 6.

This shows that the bulls are attempting to defend the breakout level and flip it as support. A breakout and close above $329 will be a signal to resume the uptrend. A rising 20-day EMA ($281) and an RSI close to the overbought zone suggest that the path of least resistance is to the upside.

Contrary to this assumption, if EGLD/USDT turns down from current levels and breaks below $303.03, the next stop could be the 20-day EMA. A strong bounce off this support would keep the uptrend intact, but a break below it could open the door for a deeper correction towards the 50-day SMA ($249).

The 4-hour chart shows the formation of an ascending triangle pattern, which completed on a breakout and close above $303.03. The target of this pattern is $427, but the recovery may not be linear as the bears may mount a fierce challenge at $355.

A break below the 20-day EMA will be the first sign of weakness. This could drag the price down to the breakout level of $303, which is an important support level for the bulls to defend. If this support cracks, EGLD/USDT could drop to the 50-day SMA and then the trendline of the triangle.