Bitcoin’s (BTC) rise above $20,000 will have to wait, as the price saw a strong correction and turned away from reaching a new all-time high.
Data suggests that whales decided to book profits when Bitcoin was close to $19,000, and this pulled the price lower. This fall could have resulted in the liquidation of overleveraged positions in the futures market and further aggravated the decline.
The current correction is a healthy sign, as the crypto market was becoming overheated as several altcoins rallied vertically in the past week. While some altcoins have given back a large portion of their recent up-move, Bitcoin remains strong, suggesting that investors are buying into support at lower levels.Daily cryptocurrency market performance. Source: Coin360
Galaxy Digital founder and CEO Mike Novogratz recently said that Bitcoin is attracting institutional investors because it is viewed as a hedge against the debasement of fiat currency. Novogratz suggested investors keep about 2% to 3% of their net worth in Bitcoin with a long-term objective, as he believes BTC will be worth a lot more in five years.
However, traders should wait for the price to stabilize and form a base before buying because trying to catch a falling knife could be dangerous. Traders can watch the price action near the critical support levels, then consider buying if they hold steady.
Let’s analyze the top 10 cryptocurrencies to spot the important support levels that may attract buyers.BTC/USD
Bitcoin (BTC) turned down from $19,458.56 on Nov. 25, and the selling intensified on Nov. 26, which pulled the price below the 20-day exponential moving average ($17,048) for the first time since Oct. 8.BTC/USDT daily chart. Source: TradingView
The bulls defended the 38.2% Fibonacci retracement level of $16,049.61 on Nov. 26, but they are struggling to sustain the price above the 20-day EMA. This suggests that traders are selling on rallies.
If the ...