- November 24, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Bitcoin has risen above $38,000, clearing the path for a rally higher. Will altcoins follow?
Bitcoin (BTC) broke above the overhead resistance of $38,000 on Nov. 24, indicating that the sentiment is positive and bulls have kept up the pressure. Independent Reserve CEO Adrian Przelozny told Cointelegraph that the “next two years are going to be good,” and market activity is likely to pick up in early 2024.
The major catalysts for next year is the Bitcoin halving in April and applications for a spot Bitcoin exchange-traded fund, some of which have a deadline for a decision in January. With two main events on the horizon, Bitcoin is likely to find buyers on dips.
Analysts expect a retracement from $40,000 in the near term. That could be one of the reasons why Cathie Wood’s investment firm, ARK Invest, has been gradually selling into strength. The firm sold about 700,000 shares of the Grayscale Bitcoin Trust (GBTC) over the past month, but it is worth noting that ARK still holds more than 4.3 million GBTC shares.
Could crypto traders bulldoze their way through the overhead resistance levels in Bitcoin and major altcoins? What are the important levels to watch out for?
Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin pierced the stiff resistance of $37,980 on Nov. 24, but the bulls are struggling to sustain the breakout. This suggests that the bears are vigorously guarding the level.
Both moving averages are sloping up, and the relative strength index (RSI) is above 61, indicating that the path of least resistance is to the upside. If buyers maintain the price above $37,980, the BTC/USDT pair could reach $40,000.
This level may again witness a tough battle between the bulls and the bears, but if the buyers prevail, the pair could skyrocket to $48,000. Time is running out for the bears. If they want to weaken the momentum, they will have to sink the price below the 20-day EMA. The short-term trend will turn negative below $34,800.
Ether price analysis
The bulls pushed Ether (ETH) above the resistance line on Nov. 22, suggesting the start of the next leg of the up-move.
The bears tried to pull the price back below the resistance line on Nov. 23, but the bulls held their ground. This suggests that the bulls are trying to flip the resistance line into support. If they succeed, the ETH/USDT pair could start a northward march toward $2,200.
This level may again act as a formidable resistance, but if bulls overcome it, the pair will complete a large ascending triangle pattern. That could open the gates for a potential rally to the pattern target of $3,400.
This bullish view will be invalidated in the near term if the price turns down and plummets below the vital support at $1,900.
BNB price analysis
BNB (BNB) jumped above $235 on Nov. 22, but the bulls could not overcome the obstacle at the 20-day EMA ($239). This suggests that bears are trying to take control.
The 20-day EMA has started to turn down, and the RSI is just below the midpoint, indicating a minor advantage to the bears. The short-term trend will turn negative on a break and close below the crucial support at $223. That could clear the path for a fall to $203.
If bulls want to prevent the downside, they will have to push and sustain the price above the 20-day EMA. The BNB/USDT pair may then spend some more time inside the large range between $223 and $265.
XRP price analysis
The bulls are trying to shove XRP (XRP) above the 20-day EMA ($0.62), which suggests strong buying at lower levels.
The 20-day EMA has flattened out, and the RSI is near the midpoint, indicating range-bound action in the short term. The XRP/USDT pair may swing between $0.56 and $0.74 for a few days.
If the price rises and sustains above the 20-day EMA, the pair could gradually climb to $0.67 and thereafter to $0.74. Buyers will have to overcome this hurdle to indicate the start of a new up-move.
Conversely, if the price turns down from the current level and breaks below $0.56, it will signal the start of a sharper correction to $0.46.
Solana price analysis
Solana (SOL) has been trying to break above the $59 resistance for the past two days, but the bears have held their ground. A minor positive in favor of the bulls is that they have not ceded ground to the bears.
The rising 20-day EMA ($52.80) and the RSI in the positive territory suggest that bulls have the upper hand. That enhances the prospects of a rally above the overhead resistance. If that happens, the SOL/USDT pair could ascend to $68.
Contrary to this assumption, if the price turns down from the current level, the bears will strive to tug the pair below the 20-day EMA. If they can pull it off, the pair may drop to $48, where buyers are likely to step in.
Cardano price analysis
Cardano (ADA) has been swinging above and below the $0.38 level for the past few days. This shows uncertainty about the next directional move between the bulls and the bears .
The upsloping moving averages and the RSI in the positive territory indicate that the bulls have a slight edge. If the price rises above $0.40, it will signal the start of a new up-move to $0.42 and later to $0.46.
If bears want to trap the aggressive bulls, they will have to yank the price below $0.34. That may result in a fall to the 50-day SMA ($0.31). The ADA/USDT pair may then oscillate between $0.24 and $0.38 for a while longer.
Dogecoin price analysis
Dogecoin (DOGE) has been maintaining above the 20-day EMA ($0.08) for the past two days, but the rise lacks momentum. This indicates that bulls are cautious at higher levels.
Buyers will have to propel the price above $0.08 to signal strength. The DOGE/USDT pair could then surge toward the target objective of $0.10. This level may again witness a tough battle between the bulls and the bears.
If the price turns down from $0.08, it will suggest that bears remain active at higher levels. The pair may then drop to the immediate support at $0.07. The flattish 20-day EMA and the RSI just above the midpoint do not give a clear advantage either to the bulls or the bears.
Related: ‘Enjoy sub-$40K Bitcoin’ — PlanB stresses $100K average BTC price from 2024
Toncoin price analysis
Buyers are trying to push Toncoin (TON) to the overhead resistance of $2.59. The repeated retest of a resistance level tends to weaken it.
If bulls drive and sustain the price above the $2.59 to $2.77 resistance zone, it will complete a cup-and-handle pattern. That could start a new uptrend to $3.28 and thereafter to the pattern target of $4.03.
Alternatively, if the TON/USDT pair turns down from the overhead resistance, it will suggest that bears are fiercely protecting the level. That could result in a move down to the 50-day SMA ($2.20). A slide below this level will open the doors for a fall to $2 and subsequently to $1.89.
Chainlink price analysis
Chainlink (LINK) is facing selling at the downtrend line, as seen from the long wick on the Nov. 23 candlestick.
However, the bulls have not given up and have again pushed the price to the downtrend line. The price is stuck between the downtrend line and the 61.8% Fibonacci retracement level of $12.83. This has resulted in a squeeze, likely resolving with a sharp move on either side.
If the price surges above the downtrend line, the LINK/USDT pair may climb to $16.60 and then to $18.30. Instead, if the price turns down and plunges below $12.83, the decline could extend to the 50-day SMA ($11.21).
Avalanche price analysis
Avalanche (AVAX) has reached the overhead resistance at $22, which is an important level to watch out for. The bears are expected to defend this level with vigor.
However, if bulls do not give up much ground from the current level, it will increase the likelihood of a break above $22. The pair may then climb to $25 where the bears are likely to mount a strong defense.
On the downside, the 20-day EMA ($18.40) remains the key level to keep an eye on. If the price turns down and slips below this level, it will suggest the start of a deeper correction to $16. Such a move will indicate that the AVAX/USDT pair may spend some more time inside the large range between $10.50 and $22.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
