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Bitcoin (BTC) made a stellar return from its March 2020 lows and this performance was noted by institutional investors. Recently Rick Rieder, BlackRock’s CIO of fixed income, said Bitcoin could replace gold as it is “more functional than passing a gold bar.”
Comments like these are a welcome sign as they show that the Bitcoin narrative increasingly seen as digital gold even among traditional investors is gaining wider acceptance.
A new report from cryptocurrency investment firm Pantera Capital attributes the recent Bitcoin price hike to PayPal’s new crypto service. According to Pantera, the data shows that “PayPal is already buying nearly 70% of the new bitcoin offering” and Cash App the remaining 30%, which has created a real shortage of supply.
Bitcoin opponents have long described the asset as too volatile, but research by investment management firm Van Eck found that around 51% of the shares of the S&P 500 are equal to or more volatile than Bitcoin on a 90 basis. days.
Results like these could attract more cryptocurrency investors if the data became widely known.
Investors are now wondering if Bitcoin’s price will hit a new all-time high next week and if altcoins will follow?
We study the charts of the top five cryptocurrencies to determine the path of least resistance and identify the critical levels to the upside and downside.
BTC / USD
Bitcoin (BTC) formed a Doji candlestick pattern on November 21 and was resolved to the downside today. In a strong uptrend, corrections usually last one to three days, then the trend resumes.
The strong rebound from today’s intraday lows suggests that buyers are piling up on every drop. If the bulls can now push the price above $ 18,695.75, a rally to the all-time high is possible.
If buyers manage to push the price above $ 20,000, the BTC / USD pair could gain momentum and form a steep rise.
One thing to note is that the BTC / USD pair has not corrected significantly since the current phase of the rally began at the $ 10,500 level.
The price hasn’t even returned to the 20-day exponential moving average ($ 16,493) since October 8, which suggests there has been a buying stampede.
If the pair breaks down from current levels and breaks below $ 17,629, the decline could extend to the 20-day EMA. The bulls are likely to buy closer to this support as the trend remains strong.
The Relative Strength Index (RSI) on the 4-hour chart has formed a bearish divergence, which is a negative sign. However, the bears’ inability to hold the price below the 20 EMA suggests a strong bullish buildup to lower levels.
If the bulls can sustain the price above the downtrend line, a retest of the resistance at $ 18,965.75 is possible.
On the other hand, if the price falls from current levels and falls below $ 17,600, the possibility of a break below $ 17,200 increases.
ETH / USD
Ether (ETH) gained momentum on November 20 after surging above the overhead resistance at $ 488.134. The largest altcoin quickly covered the ground and hit an intraday high of $ 561,223 today.
The correction in Bitcoin also led to the booking of profits in the ETH / USD pair today, but the long tail on the candle shows aggressive buying at lower levels.
If the bulls manage to push the price above $ 561.223, the uptrend can resume with the next target at $ 625. The bullish moving averages and the RSI in the overbought zone suggest that the bulls are in control.
This bullish view will be negated if the bears manage to lower the price below today’s intraday low $ 511.769. Such a move could attract aggressive selling and increase the chance of a break below the critical support at $ 488.134.
The 4-hour chart shows that the bulls have aggressively bought the decline at 20 EMA. Now they will try to push the price above general resistance. If they succeed, the uptrend may resume.
Conversely, if the price falls from current levels or overhead resistance, the bears will try to sink the pair below the 20-EMA. If so, the decline can extend to the critical support at $ 488.134.
XRP / USD
XRP was up 40.48% on November 21st. This strong upside suggests that traders were buying panic due to the FOMO. However, when the underperformers start to skyrocket, it generally suggests that the bullish phase has entered its final stage.
The psychological level of $ 0.50 attracted profit bookings from traders today and the price is back just above the 38.2% Fibonacci retracement level at $ 0.393344. The long tail on the candle shows strong buying at lower levels.
If the altcoin rises above $ 0.46, the bulls will again try to resume the uptrend by pushing the price above $ 0.50. If successful, the rally can extend to $ 0.60 and then to $ 0.75.
The volatility expansion of November 21 and today has pushed the RSI deep into overbought territory. Hence, the XRP / USD pair may enter a period of reflection and consolidate for a few days before starting the next trend move.
This view will be invalidated if the bears lower the price below $ 0.39 as the next support is at the 50% Fibonacci retracement at $ 0.361738.
The 4-hour chart shows that the bulls are buying on dips near the $ 0.40 levels but are struggling to support the price above $ 0.46. This suggests that traders are selling on smaller rallies.
If the bulls manage to push the price above $ 0.46, a retest at $ 0.495663 is possible. A break above this resistance could resume the uptrend.
Conversely, if the price falls from current levels or $ 0.46, a deeper correction to the 20-EMA is possible.
LTC / USD
Litecoin (LTC) is in a strong uptrend, and the bulls pushed the price above the overhead resistance of $ 84.3374 on Nov 21. However, buyers could not sustain the breakout, which suggests a profit booking at higher levels.
Today, the bears pushed the price back below $ 84.3374, but the long tail on the candle shows buying at lower levels. If the bulls can push the price back above $ 84.3374 and sustain the breakout, the LTC / USD pair can resume the uptrend and reach $ 100.
However, if the bears defend the overhead resistance of $ 84.3374, the pair can drop to the 38.2% Fibonacci retracement level of $ 72.5521. This support is just above the 20-day EMA ($ 69), so the bulls are likely to defend this zone aggressively. The advantage will shift in favor of the bears if they manage to lower the price below $ 67.
The 4-hour chart shows that the selling intensified after the bears dragged the price below $ 84.3374, but the sellers could not capitalize on the break below the 20-EMA. The pair rebounded from intraday lows and reached general resistance.
If the bulls can sustain the price above $ 84.3374, the uptrend may resume. On the other hand, if the price falls from current levels and dips below $ 78, the pair could correct to the 50 simple moving average at $ 75.
DASH / USD
Dash (DASH) rose on Nov 21 and closed just above the overhead resistance at $ 94.1813. The bulls tried to resume the upward movement today, but the price has fallen from $ 95.4549.
This suggests that the inability to sustain the price above $ 94.1813 may have attracted short-term trader profit booking.
The first support on the downside is the 38.2% Fibonacci retracement level at $ 82.7761. If the price rebounds from this level, the bulls will again try to resume the uptrend by pushing the DASH / USD pair above $ 95.4549. The next upside target is $ 104 and then $ 110.
Contrary to this assumption, a deeper correction to the 20-day EMA ($ 78) is possible if the bears push the price below $ 82.7761.
The pair has rebounded from the 20-EMA on the 4-hour chart. If the rebound sustains above $ 91, the bulls will once again try to resume the uptrend by pushing the price above $ 95.4549.
On the other hand, if the pair falls from current levels and the bears sink the price below the 20-EMA, the bulls will try to stop the decline at the 50-SMA.
If they don’t, the pair could drop to the 50% Fibonacci retracement level at $ 78.8596, and if this support also plummets, the next support will be at the 61.8% Fibonacci retracement level at 74, $ 9413.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move carries risk, you should conduct your research when making a decision.
