The price of Bitcoin seems to have lost strength in the short term and may take time while the altcoins try to catch up.
US Federal Reserve Chairman Jerome Powell said recently that additional tax burdens could result in a stronger recovery. He also stressed that the Fed had enough tools to support the economy.
After the US election winner is announced, the focus of legislators may shift to the next stimulus package. However, the printing of additional money will only worsen the existing national debt, which currently stands at US$27.2 trillion.
While a new round of stimulus measures may be needed in the short term to reduce the impact of the economic crisis caused by the OVID-19 pandemic, analysts believe that the Fed may not be able to reverse the measures in the future.
For this reason, apprehensive institutional investors have been protecting their portfolio with gold and some others, such as billionaire hedge fund manager Paul Tudor Jones, are advocating the purchase of Bitcoin (BTC).
Galaxy Digital’s CEO and investor Mike Novogratz believes Bitcoin is in a bullish phase. Therefore, he recently advised HODLers to stop and block their phones to contain the thrill of accounting for profits after the recent high.
While long term investors may hold their positions, short term traders will need to be on the alert not to return a large portion of their unrealized gains.
Let’s take a look at the charts of the top 10 cryptomaps to see if the bullishness has peaked or could extend further.
The Bitcoin (BTC) closed above US$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 acting as a resistance.
However, the trend is clearly in favor of the bulls and any fall is likely to be seen as a buying opportunity.
Although the relative strength index has invalidated the negative divergence, it has risen deep into overbought territory, suggesting that a few days of consolidation or a correction may be near.
If the bulls buy the next drop to $14,000, this will suggest that the previous resistance has switched to support and this level may act as a floor during future falls.
Sometimes during a shopping frenzy, RSI can remain deeply overbought for a long time. Therefore, if bulls can push the price above $16,000, a move into the resistance zone of $17,000 to $17,200 is possible. This is the final hurdle before a shot at all-time highs.
However, the vertical highs rarely hold and usually end with sharp drops. Therefore, traders should be cautious, even if the upward trend continues.
The optimistic outlook will be invalidated if the BTC/USD pair falls below the $14,000 support.
Ether (ETH) gained momentum after the bulls pushed the price above the downward trend line on November 4. The 20-day high EMA (US$395) and RSI near the overbought zone suggest bulls are in control.
The next upward target is $450 and if bulls can push the price above this resistance, the ETH/USD pair could reach $488,134. Even if the bears offer resistance at US$450, the bulls will probably buy the falls, as the sentiment has become positive.
The first sign of weakness will be a drop below the 20-day MME and the advantage will go to the bears if the 50-day SMA (US$ 374) breaks.
XRP has been limited between US$ 0.2295 and US$ 0.26 in recent weeks. The bears‘ failure to break below the belt on November 3 attracted buyers who pushed the price to the resistance of the belt.
If bulls can push and sustain the price above $0.26, the XRP/USD pair may start a new uptrend which could result in a high to $0.303746. The RSI has risen above 60 for the first time since August, suggesting bulls are making a strong recovery.
Contrary to this assumption, if the pair falls from current levels or stops sustaining above $0.26 then a few more days of action within range are likely. The trend will turn in the bear’s favour if the pair falls below the support zone from $0.2295 to $0.219712.
The $231.93 support recovery reached the 20-day MME ($255), where bears can offer resistance. If Bitcoin Cash (BCH) falls from current levels, bears will again try to sink the price below $231.93.
On the other hand, if bulls push the price above the 20-day MME, the BCH/USD pair can rise into the resistance zone by $272 to $280.
The 20-day MME has stabilised and the RSI has risen to the mid-point, suggesting possible limited action in the short term.
A breach of $280 could signal the onset of a bullish move that could reach $326, while a breach below $231.93 could result in a drop to $200.
The long tails on the sails over the past three days show that the bulls have accumulated in falls below the upward trend line. They have pushed Chainlink (LINK) above the downtrend line, which suggests that the correction may be over.
The bulls will now try to push the price to the next overload resistance at $13.28. A breakout and a close above this resistance may complete a reverse pattern of head and shoulders up.
However, flat moving averages and an RSI just over 55 suggest a limited range action in the next few days.
This view will be invalidated if the LINK/USD pair falls below current levels and breaks below $9.7665.
The Binance Coin (BNB) reversed its direction of US$25.6652 on Nov. 4 and the bulls are trying to sustain the price above the 20-day MME (US$28.83). This movement suggests that the bears are losing control.
If the price remains above the moving averages, the bulls will try to push the BNB/USD pair into the overload resistance by US$32.
However, if the pair falls from current levels, the bears will try once again to break the $25.6652 support.
Flat moving averages and RSI near the mid-point suggest a balance between supply and demand. This could result in a few more days of action within the $25.6652 to $32 range.
The successful retesting of the reverse pattern of head and shoulders on November 3 and 4 attracted strong buying from the bulls that pushed Litecoin (LTC) above US$60.
Both moving averages are rising and the RSI is close to the overbought zone, suggesting that the bulls are in control.
If the bulls maintain momentum and raise the price above US$64, the LTC/USD pair could rise to US$68,9008.
However, bears are unlikely to give up easily. They are currently trying to halt the upward movement by $64, but unless they lower the price below $60, the advantage will remain with the bulls.
The failure of bears to sink Polkadot (DOT) below $3.80 on November 3 and 4 attracted the purchase and the bulls pushed the price above moving averages.
The DOT/USD pair is currently between $3.80 and $4.95. If the bulls can push the price above $4.6112, the pair may try to break above $4.95. If this happens, a rise to $5.5899 is possible.
Both moving averages are stable and the RSI has risen to positive territory, suggesting a small advantage for the bulls. However, if the price drops from $4.6112 or $4.95, the pair may extend their stay within the range for a few more days.
The $0.0893 support recovery gained momentum after bulls pushed the Cardano (ADA) above moving averages. Altcoin is currently trying to climb to $0.1142241 air resistance.
If the price drops from the overload resistance, the ADA/USD pair may stay in the $0.0893 to $0.1142241 range for a few days.
However, flat moving averages and RSI above 60 suggest that bulls are attempting a recovery. If buyers can raise the price above US$ 0.1142241, a rise to US$ 0.128 and then to US$ 0.1445 is possible.
This positive view will be invalidated if the pair falls from current levels and drops below $0.0893.
The bulls bought the Bitcoin SV (BSV) in drops to the $146.20 holder on November 3 and 4, as seen by the long tails on the candlesticks. The recovery gained momentum on Nov. 5 and altcoin currently rose above moving averages.
If bulls can sustain the price above moving averages, the BSV/USD pair could rise to US$ 180.63. Bears may defend this level aggressively, as the pair has reversed the direction of this resistance on three previous occasions.
Both moving averages are stable and the RSI has risen to the mid-point, 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 the bulls push and hold the price above $180.63 or bears sink the pair below the $146.20 to $135 support zone.