Selected altcoins are rising as Bitcoin (BTC) prepares for a renewed boost to $ 16,000
This week, the price of Bitcoin ( BTC ) nearly hit a new high of $ 16,000 and legendary investor Bill Miller told CNBC that the supply and demand law favors BTC. Although supply is increasing by 2.5% a year, “demand is growing faster than that”. Miller expects all major banks, high net worth companies and investment banks to “eventually have some exposure to Bitcoin”.
Although Bitcoin’s volatility remains high, Miller expects investors to focus on Bitcoin’s staying power as the risk of reaching zero is much less than before.
At the current market capitalization of more than $ 284 billion, Bitcoin would be in 18th place when compared to publicly listed American companies. Only Mastercard, JPMorgan Chase and Visa are ahead of Bitcoin in terms of market capitalization.
However, after several media outlets announced Joe Biden as the winner of the 2020 presidential election, the uncertainty of a long-contested vote-counting process ended. Now market participants can focus on the president-elect’s first decisions before aggressively buying or selling crypto assets.
If the bullish sentiment holds, these five cryptocurrencies may perform better in the short term. We will analyze the graphs to identify the critical levels of support and resistance in each one.
BTC / USD
Bitcoin (BTC) is currently in a corrective phase within a strong bullish trend. When sentiment is positive, traders see falls to strong support levels as a buying opportunity, because it offers a low risk entry point.
The November 7 correction pulled the relative strength index below overbought levels, suggesting a weak handshake. However, upward moving averages suggest that the path of least resistance is upward.
As the BTC / USD pair has risen sharply in the past few days, it can consolidate gains by entering a limited stock for a few days. Such a move will help the pair form a strong base necessary to attack the best of all time.
Therefore, the chance that the pair will remain between $ 14,000 to $ 16,000 over the next few days is high.
A break above $ 16,000 could resume the bullish trend with the next probable stop at $ 17,200, while a break below the 20-day exponential moving average ($ 13,793) may tip the bears advantage.
The $ 15,956.26 correction was supported slightly above the simple 50 moving average on the 4-hour chart. The bulls are currently trying to resume the bullish movement, but have reached a barrier in the downtrend line.
If the price falls from the downtrend line, the bears will try to lower the price below $ 14,000 again. However, the bulls are likely to take action and buy that drop.
On the other hand, if bulls push the price above the downtrend line, a new test of $ 15,956.26 is possible. Breaking this resistance could start the next leg of the bullish trend.
ETH / USD
Ether ( ETH ) is currently trading within an increasing wedge pattern. The bulls tried to push the price above the wedge on November 7, but failed to sustain the higher levels.
However, the positive side is that the bulls have not given up much ground and are trying to resume the climb. The rising 20-day EMA ($ 405) and the RSI above 66 suggest that bulls are at an advantage.
If they can push and close the price above the wedge resistance line, it will invalidate the bearish pattern.
Sellers may try to halt the high at $ 488,134, but if the bulls manage to boost the ETH / USD pair above that resistance, a rise to $ 520 and then to $ 550 will be in the cards.
Contrary to this assumption, if the pair turns downward from the wedge resistance line, the bears will try to pull the price back to the wedge support line. A break below the wedge may tip the bears advantage.
The 4-hour chart shows that the bulls defended the 20-EMA, which is a positive sign. This shows that sentiment is bullish and buyers are accumulating declines for strong support levels.
If bulls manage to push the price above $ 455, the pair will try to resume the bullish movement by breaking above $ 468.
This optimistic view will be invalidated if the pair drops from current levels or the overload resistance and plummets below $ 424. Such a move could pull the price down to $ 395.
LINK / USD
The chain link ( LINK ) formed a reverse head and shoulders pattern that will end in a break and close above the resistance above $ 13.28. This optimistic configuration aims to target $ 19.2731.
The 20-day EMA ($ 11.36) started to rise and the RSI rose to the positive zone, which suggests that the path of least resistance is upwards.
The bulls are currently trying to push the price above the overload resistance. If they are successful, the upward trend may resume.
This optimistic view will be invalidated if the LINK / USD pair drops from the current levels or the overload resistance and falls below $ 9.7665. Such a move could mean an advantage for bears.
The bulls pushed the price to more than $ 13.28, but failed to sustain a breakout, which shows that bears are defending that level.
However, the positive sign is that the bulls bought the drop to the 20-EMA. This suggests that the feeling is to buy the sauces. If bulls manage to raise the price above $ 13.28, the next bullish step can begin.
If the price falls from the overload resistance, a few days of action within the limit are possible. A break below the 20-EMA will be the first sign that the bullish momentum has weakened.
LEO / USD
Unus Sed Leo ( LEO ) has repeatedly dropped from $ 1.29 levels in the past few weeks. This shows that bears sell aggressively when the price reaches that resistance.
Bulls are currently trying to push the price above resistance and support it. If successful, the LEO / USD pair can start the next stage of the upward movement which can take you to $ 1.35 and then to $ 1.46.
Rising moving averages and RSI in the positive territory suggest that bulls are at an advantage.
However, if the pair fails to support itself above $ 1.29, the bears will try to pull the price down to $ 1.23. Such a move could open the door to a $ 1.16 drop.
The 4-hour chart shows that bears dragged the price to 20-EMA. If the pair recovers from that support, it will indicate a purchase in the falls. If the price remains above $ 1.29, the first target on the positive side is $ 1.35.
Contrary to this assumption, if bears sink the price below 20-EMA, a drop to 50-SMA is possible. If that support also subsides, the price could extend its fall to $ 1.23.
XEM / USD
NEM ( XEM ) rose above the moving averages and reached general resistance at $ 0.126 on November 6. The bears have defended this resistance in recent weeks and again tried to pull the price down on 7 November.
However, the bright side is that the bulls did not allow the price to fall below the 50-day SMA ($ 0.111). This suggests that lower levels are attracting purchases, as traders anticipate the hike will extend in the short term.
The 20-day EMA ($ 0.107) went up and the RSI jumped into the positive zone, suggesting that bulls are back in the game.
If buyers can drive the price above the $ 0.126 to $ 0.132 resistance zone, a rise to $ 0.140 and then to $ 0.160 is possible.
This optimistic view will be invalidated if the XEM / USD pair once again falls from the overload resistance and falls below the moving averages. Such a move will suggest that the bears are aggressively defending $ 0.126.
The 4-hour chart shows that bulls pushed the price above the $ 0.126 resistance, but failed to sustain the bear’s attack. As a result, the price dropped to 20-EMA.
However, the strong recovery from 20-EMA shows that bulls are buying aggressively at lower levels. They are currently trying to push the price over $ 0.126. If they are successful, a change to $ 0.132 is likely. The bears can again try to defend this level.
If the price drops from current levels or $ 0.132, bears will try to pull the pair below $ 0.11. On the other hand, if bulls raise the price above $ 0.132, the momentum may increase.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risk, you must conduct your own research when making a decision.
6/11 price analysis: BTC, ETH, XRP, BCH, LINK, BNB, LTC, DOT, ADA, BSV
Bitcoin’s price seems a little extended in the short term and could take a while as altcoins try to catch up.18762Total views78Total sharesListen to the article11:16 amhttps://13e8ceb8c6600e3c490307abf23e9e3b.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html
United States Federal Reserve President Jerome Powell said recently that additional fiscal stimulus could result in a stronger recovery. He also emphasized that the Fed had sufficient tools to support the economy.
After the announcement of the winner of the US elections, the focus of lawmakers may shift to the next stimulus package. However, the impression of additional money will only worsen the existing national debt, which currently stands at $ 27.2 trillion.
Even though a new round of stimulus measures may be needed in the short term to reduce the impact of the economic crisis caused by the pandemic COVID-19, analysts believe the Fed may not be able to reverse the measures in the future.
For this reason, apprehensive institutional investors have hedged their portfolio with gold and a few others, like billionaire hedge fund manager Paul Tudor Jones, advocate buying Bitcoin (BTC).
Galaxy Digital CEO and investor Mike Novogratz believes that Bitcoin is in a bullish phase. Therefore, he recently advised bitcoin HODLers to stop and lock their phones to contain the thrill of counting profits after the recent spike.
While long-term investors can HODL their positions, short-term traders will have to be on their guard not to return a large portion of their unrealized gains.
Let’s look at the charts of the top 10 cryptocurrencies to see if the bullish peak has reached or if it can extend further.
BTC / USD
Bitcoin ( BTC ) closed above $ 14,000 on November 4 and followed the move with a sharp rise on November 5. The price reached an intraday high of $ 15,956.26 today, which is currently acting as a resistance.
However, the trend is clearly in favor of bulls and any decline is likely to be seen as a buying opportunity.
Although the relative strength index invalidated the negative divergence, it rose deep into overbought territory, which suggests that a few days of consolidation or correction may be near.
If bulls buy the next drop for $ 14,000, it will suggest that the previous resistance has shifted to support and this level may act as a floor during future falls.
Sometimes, during a buying frenzy, the RSI can remain deeply overbought for a long time. Therefore, if the bulls can push the price above $ 16,000, a move to the $ 17,000 to $ 17,200 resistance zone is possible. This is the final hurdle before a shot in the heights of all time.
However, vertical rises are rarely sustained and usually end with steep falls. Therefore, traders should exercise caution, even if the upward trend continues.
The optimistic view will be invalidated if the BTC / USD pair falls and falls below the $ 14,000 support.
ETH / USD
Ether (ETH) gained momentum after the bulls pushed the price above the downtrend line on November 4. The 20-day high EMA ($ 395) and the RSI near the overbought zone suggest that bulls are in control.
The next upside target is $ 450 and if the bulls manage to push the price above this resistance, the ETH / USD pair could reach $ 488,134. Even though bears resist $ 450, bulls are likely to buy the falls as sentiment has turned positive.
The first sign of weakness will be a break below the 20-day EMA and the advantage will turn out to be in the bears’ favor if the 50-day SMA ($ 374) breaks.
XRP / USD
The XRP has been largely capped between $ 0.2295 and $ 0.26 in the past few weeks. The bears’ failure to break below the range on November 3 attracted buyers who pushed the price to the range’s resistance.
If bulls are able to push and sustain the price above $ 0.26, the XRP / USD pair could start a new bullish trend that could result in a rise to $ 0.303746. The RSI has risen above 60 for the first time since August, which suggests that bulls are making a strong recovery.
Contrary to this assumption, if the pair drops from current levels or stops sustaining above $ 0.26, then a few more days of action within the range are likely. The trend will turn in favor of the bears if the pair drops below the support zone from $ 0.2295 to $ 0.219712.
BCH / USD
The $ 231.93 support rebound reached the 20-day EMA ($ 255), where bears can offer resistance. If Bitcoin Cash (BCH) drops from current levels, the bears will try again to sink the price below $ 231.93.
On the other hand, if bulls push the price above the 20-day EMA, the BCH / USD pair could rise to the resistance zone by $ 272 to $ 280.
The 20-day EMA has stabilized and the RSI has risen to the midpoint, which suggests a possible limited action in the short term.
A $ 280 break could signal the start of a bullish move that could reach $ 326, while a break below $ 231.93 could result in a fall to $ 200.
LINK / USD
The long tails on the sails of the past three days show that bulls have accumulated in drops below the uptrend line. They pushed Chainlink above the downtrend line, suggesting that the correction may be over.
The bulls will now try to push the price to the next overhead resistance at $ 13.28. A leak and close above this resistance can complete an inverse head and shoulders upward pattern.
However, the flat moving averages and the RSI just above 55 suggest action limited to a range in the coming days.
This view will be invalidated if the LINK / USD pair drops from current levels and breaks below $ 9.7665.
BNB / USD
Binance Coin ( BNB ) reversed the $ 25.6652 direction on November 4 and the bulls are currently trying to sustain the price above the 20-day EMA ($ 28.83). This move suggests that bears are losing control.
If the price remains above the moving averages, the bulls will try to push the BNB / USD pair into the $ 32 overload resistance.
However, if the pair drops from current levels, the bears will once again try to break the $ 25.6652 support.
Flat moving averages and the RSI close to the midpoint suggest a balance between supply and demand. This can result in a few more days of action within the $ 25.6652 to $ 32 range.
LTC / USD
The successful retest of the breakout level of the reverse head and shoulders pattern on 3 and 4 November attracted strong buying from the bulls that pushed Litecoin (LTC) above $ 60.
Both moving averages are rising and the RSI is close to the overbought zone, which suggests that bulls are in control.
If bulls maintain momentum and raise the price above $ 64, the LTC / USD pair could rise to $ 68,9008.
However, bears are unlikely to give up easily. They are currently trying to stem the upward movement at $ 64, but unless they lower the price below $ 60, the advantage will remain with the bulls.
DOT / USD
The bears’ failure to sink Polkadot (DOT) below $ 3.80 on 3 and 4 November attracted buying and bulls pushed the price above moving averages.
The DOT / USD pair is currently between $ 3.80 and $ 4.95. If the bulls manage to push the price above $ 4.6112, the pair may try to break above $ 4.95. If that happens, a rise to $ 5.5899 is possible.
Both moving averages are stable and the RSI has risen to positive territory, which suggests a small advantage for bulls. However, if the price drops from $ 4.6112 or $ 4.95, the pair may extend its stay within the range for a few more days.
ADA / USD
The $ 0.0893 support rebound gained momentum after the bulls pushed Cardano (ADA) above moving averages. Altcoin is currently trying to rise to air resistance at $ 0.1142241.
If the price falls from the overhead resistance, the ADA / USD pair may remain in the range between $ 0.0893 and $ 0.1142241 for a few days.
However, flat moving averages and the RSI above 60 suggest that bulls are attempting a recovery. If buyers can raise the price above $ 0.1142241, an increase to $ 0.128 and then to $ 0.1445 is possible.
This positive view will be invalidated if the pair drops from current levels and falls below $ 0.0893.
BSV / USD
The bulls bought Bitcoin SV (BSV) in drops for the $ 146.20 support on November 3 and 4, as seen by the long tails on the sails. The recovery gained momentum on November 5 and altcoin currently has risen above the moving averages.
If bulls manage to sustain the price above the moving averages, the BSV / USD pair could rise to $ 180.63. Bears can aggressively defend this level, as the pair reversed the direction of that resistance on three previous occasions.
Both moving averages are stable and the RSI has risen to the midpoint, suggesting that action at the edge of the range is likely to continue for a few more days.
Contrary to this assumption, a trend move could begin if bulls push and hold the price above $ 180.63 or the bears sink the pair below the $ 146.20 to $ 135 support zone.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risk. You must conduct your own research when making a decision.
Market data is provided by the HitBTC exchange