Bitcoin (BTC) has made an amazing recovery from its March lows, and this performance is attracting the attention of institutional investors. Recently Rick Rieder, CIO for Fixed Income at BlackRock, He said Bitcoin could replace gold because it is “more functional than passing a gold bar”.
Comments like these are a positive sign as they show that the narrative that Bitcoin is increasingly viewed as digital gold, It has also found more acceptance among traditional investors.
ONE new report Cryptocurrency investment firm Pantera Capital attributes the recent Bitcoin price hike to PayPal’s new cryptocurrency service. According to Pantera, the data shows that “PayPal is already buying almost 70% of the new Bitcoin offering” and Cash App the other 30%, which has created a real supply bottleneck.
Those who ignore Bitcoin have long said that the asset is too volatile. However, a study by investment management firm Van Eck found that around 51% of SP 500 stocks are equal to or more volatile than Bitcoin over a 90-day period.
Results like this could attract more cryptocurrency investors if the data were made widely known.
Investors are now wondering whether the price of Bitcoin will hit a new all-time high next week and whether Altcoins will follow the current trend.
Let’s analyze the charts of the top five cryptocurrencies to determine the path of least resistance and the levels to watch for up and down.
BTC / USD
Bitcoin (BTC) formed a Doji candlestick pattern on Nov. 21 and broke up earlier today. In a solid uptrend, corrections typically take one to three days and then the trend continues.
The sharp rebound from today’s lows during the day suggests that buyers will increase with each decline. If the bulls can now push the price above $ 18,695.75, we may see a move towards the all-time high.
If buyers can push the price above $ 20,000, the BTC / USD pair could gain momentum and form a blow-off top.
One thing to note is that the BTC / USD pair has not corrected significantly since this current segment of the uptrend began at USD 10,500.
The price hasn’t even dropped back to the 20-day exponential moving average ($ 16,493) since Oct. 8, suggesting a buying frenzy has occurred.
If the pair deviates from current levels and breaks below $ 17,629, the slide could extend to the 20-day EMA. The bulls should buy closer to this support as the trend remains strong.
The Relative Strength Index (RSI) on the 4-hour chart has formed bearish divergence, which is a negative sign. However, the bears’ failure to keep the price below the 20-day EMA suggests a sharp rise in the bulls at the lower levels.
If the bulls can keep the price above the downtrendline, it is possible to retest the overhead resistance at $ 18,965.75.
On the other hand, If the price deviates from current levels and falls below $ 17,600, the chances increase that we will see a break below $ 17,200.
ETH / USD
Ether (ETH) gained momentum on November 20 after trading above the overhead resistance at $ 488,134. The largest altcoin quickly gained ground, rising to an intraday high of $ 561,223 today.
The Bitcoin correction also resulted in a profit posting in the ETH / USD pair today, but the long tail on the candle indicates aggressive buying at the lower levels.
If the bulls manage to push the price above $ 561,223, the uptrend could resume with the next target of $ 625. The moving averages are rising and the RSI in the overbought zone suggests that the bulls have the upper hand.
That bullish view will be reversed if the bears manage to break the price below today’s intraday low of $ 511,769. Such a move could attract aggressive sales and increase the possibility of a dip below the critical support at $ 488,134.
The 4-hour chart shows that the bulls have aggressively bought the jump into the 20-day EMA. Now they will try to bring the price above the upper resistance. If he has his way, the uptrend could resume.
Conversely, the bears will seek to lower the pair below the 20-day EMA if the price falls from current levels or from the upper resistance. If so, the slide could drag the price to a critical support of $ 488,134.
XRP / USD
The XRP rose 40.48% on November 21. This strong rally suggests that traders were buying, driven by FOMO. However, when sub-par altcoins soar, it generally indicates that the bull phase has reached its final stage.
The $ 0.50 psychological level caused traders to take their profits earlier today and the price was just above the 38.2% Fibonacci level at $ 0.393344. The long tail of the candle shows strong buying on the lower levels.
If the altcoin rises above $ 0.46, the bulls will try again to resume the uptrend by pushing the price above $ 0.50. If successful, the rally could extend to $ 0.60 and then to $ 0.75.
Increasing volatility on November 21st and today has driven the RSI deep into overbought territory. As a result, the XRP / USD pair may enter a cool down period and consolidate for a few days before starting its next trend move.
That view will be invalidated if the bears cut the price below $ 0.39. The next support is the Fibonacci level at 50% retracement at $ 0.361738.
The 4-hour chart shows that the bulls are buying closer to the $ 0.40 level during the dips but struggling to keep the price above the $ 0.46 level. This suggests that traders are selling on small rallies.
If the bulls manage to push the price above $ 0.46, it is possible to retest the $ 0.495663 level. A break above this resistance could resume the uptrend.
Conversely, if the price deviates from the current level or from the USD 0.46 level, there may be a deeper correction in the 20-day EMA.
LTC / USD
Litecoin (LTC) is in a solid uptrend and the bulls had pushed the price above the overhead resistance of $ 84.3374 on November 21st. However, buyers were unable to sustain the breakout, suggesting retained earnings at higher levels.
Today the bears brought the price back below $ 84.3344, but the candle’s long tail shows that they are buying at the lower levels. If the bulls push the price back above $ 84.3374 and sustain the breakout, the LTC / USD pair could resume the uptrend and move up to $ 100.
However, if the bears defend the resistance at $ 84.3374, the pair could fall to the 38.2% Fibonacci level at $ 72.5521. This support is just above the 20-day EMA (USD 69), so the bulls can aggressively defend this zone. The benefit will shift in favor of the bears if they manage to bring the price below $ 67.
The 4-hour chart shows that selling intensified after the bears pushed the price below $ 84.3344 but sellers failed to take advantage of the decline below the 20-day EMA. The pair bounced off intraday lows and hit overhead resistance.
If the bulls can hold the price above $ 84.3374, the uptrend could resume. On the other hand, if the price deviates from current levels and falls below $ 78, the pair could hit the 50-easy SMA, which is at $ 75.
DASH / USD
Dash (DASH) rose on Nov 21, closing just above the overhead resistance at $ 94.1813. The bulls tried to resume the uptrend earlier today but the price fell from $ 95.4549.
If the price had not been held above $ 94.1813 it could have created a reserve of retained earnings with short term traders.
The first downward move is the Fibonacci retracement level of 38.2% at $ 82.7761. If the price bounces above this level, the bulls will try again to resume the uptrend by pushing the DASH / USD pair above $ 95.4549. The next upside target is $ 104 then $ 110.
Contrary to this assumption, if the bears manage to break the price below $ 82.7761, we can see a deeper correction towards the 20-day EMA ($ 78).
The pair rallied from the 20-day EMA on the 4-hour chart. If the rebound keeps the price above $ 91, the bulls will try again to resume the uptrend by pushing the price above $ 95.4549.
On the flip side, if the pair deviates from current levels and the bears manage to break the price below the 20-day EMA, the bulls will seek to halt the decline in the 50-day SMA.
If it doesn’t, the pair could fall to the 50% retracement Fibonacci level at $ 78.8596. If that support also fails, the next support is at the 61.8% retracement Fibonacci level at $ 74.9413.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and business move is associated with risks. You must do your own research when making a decision.