Bitcoin (BTC) and most altcoins were sold out on December 4 with a significant drop in influence in the cryptocurrency derivatives markets. Data show that over $ 2.5 billion in cryptocurrency has been liquidated within 24 hours.

Over the past fall, Ether (ETH) continued to outperform Bitcoin. While Bitcoin’s market dominance has fallen below 41%, Ether continues to gain ground and market dominance is above 21%.

Daily display of market data for cryptocurrencies. Source: Coin360
Some analysts believe that the recent decline in bitcoin may lead to an extended phase of consolidation. Decentrader co-founder filbfilb expects Bitcoin to consolidate well in the first quarter of next year. Lex Moskovsky, CIO of Moskovski Capital expects a “slow grind.”

Can bitcoin fall in the next few days? Let’s analyze the charts of the 5 best digital currencies that can lift the markets.

Bitcoin gained strong support at the 100-day simple moving average ($ 54,496) at the end of September, which made it an important support for protecting the bulls.

BTC / USDT daily chart. Source: TradingView
However, the Bears had other plans. They pushed the price below the 100-day simple moving average on December 3, which could potentially stop more losses. This led to panic selling, and on December 4, the BTC / USDT pair fell to $ 42,000. The bulls were excited about this fall, as the long tail in the light of day shows.

The 20-day declining exponential moving average ($ 56,219) and the relative strength index (RSI) near the oversold range indicate that the bears have an advantage. If the pair continues to fall from current levels, the strong support of $ 40,000 could be the next stop.

Conversely, if the price reverses from the current level, the pair may rise to the 100-day moving average, which can be a serious obstacle. An outbreak and an end above this level will be the first sign of the possibility of a stronger recovery.

4 hour BTC / USDT chart. Source: TradingView
The pair trades within the descending channel pattern. The bears pulled the price below the channel’s guide line, but the bulls bought dip and brought the pair back into the channel.

If the bulls succeed in defending the guide, the pair can rise to 20-EMA. This level is expected to be strong resistance again. If the price reverses down from 20-EMA, this will be a sign that sentiment is still negative. This can increase the possibility of outbreaks under the canal.

If this happens, the pair could fall to a strong support range of $ 42,000 to $ 40,000. Conversely, an outbreak and a close above 20-EMA will be the first sign that sellers may lose control. Then the pair can rise to the resistance line of the channel.

Ether (ETH) has been in the range of $ 4868 to $ 3900 in recent days. Although the bears pushed the price below the December 4 interval, they failed to keep to the lower levels. The bulls aggressively bought this decline, as seen in the long tail of the daily light.

ETH / USDT daily chart. Source: TradingView
If the bulls hold the price above $ 3,900, the ETH / USDT pair may rise to the 20-day moving average ($ 4,326). A breakout and a close above this level could pave the way for a potential rally to all-time highs of $ 4,868. The bulls must break this barrier to signal a resumption of the trend.

Contrary to this assumption, if the price reverses down from the current level, the Bears will make another attempt to reject and keep the pair below $ 3900. If they succeed, the pair could fall to the strong support level of $ 3400.

ETH / USDT 4-hour chart. Source: TradingView
The bounce meets strong resistance around the 61.8% Fib retracement level of $ 4,215.12. 20-EMA slopes down and the RSI is in negative territory, indicating a small advantage for the bears.

If the price breaks the $ 4000 support, the pair could fall to $ 3823.98. A breakout and a close below this level could trigger a retest of $ 3,503.68.

Conversely, if the bulls raise the price above the moving averages, the pair could rise to $ 4,654.88 and then challenge the all-time high.

Matic / USDT
The polygon (MATIC) has traded within the rising channel pattern in recent days. On December 3, the bulls pushed the price above the channel resistance line, but they failed to maintain the higher levels. This could have resulted in a profit taking on 4 December.

Source: CoinTelegraph