After reaching a new record in 2020, Bitcoin traders are struggling to turn $14,100 into support and Ethereum is trying to do the same for the $400 level.
Today, the price of Bitcoin (BTC) briefly beat the $14,100 resistance and reached a new high in 2020 of $14,259 before testing $14,100 again as support.
While this level represents critical resistance, the data suggest that Bitcoin whales are not closing their positions in a hurry because they expect the current high to continue. This strong show of confidence is occurring even as uncertainty about the US presidential election result increases, showing that market players expect the price of Bitcoin to rise regardless of who wins the election.
Another sign of strength for Bitcoin is the record $215 million inflow into the Grayscale Bitcoin Trust last week. This shows that, along with the whales, institutional investors are also optimistic about the Bitcoin outlook.
If investors continue to pour money into Grayscale at the current pace, the fund could hold about 2.7% of the Bitcoin supply in circulation in approximately three weeks.
During the 2017 high market, the main driver of Bitcoin’s price action was the spot market. However, since then, volumes of Crypto Comeback Pro currency derivatives have increased, according to the November Kraken report.
Spot volumes rose to $570 billion in the first quarter of 2018, but fell „to a low of $104 billion almost two years later,“ but „the notional volume of derivatives exploded from less than $6 billion in the second quarter of 2017 to more than $1.7 billion in the third quarter of 2020,“ the report added.
While the data suggest greater participation by professional traders and institutional investors, the technical aspects project more advantages for Bitcoin and altcoins?
We will study the charts of the top 10 cryptomaps to find out.
The bears could not even sink the Bitcoin (BTC) in the exponential 20-day moving average (US$13,057) in the last few days, which showed that the bulls were in no hurry to record profits. This could have attracted another round of buying that pushed the price to a new high in 2020, at $14,259 today.
Rising moving averages and the relative strength index in the overbought zone suggest that bulls are in control. If they can sustain the price above US$14,102, the next step in the upward movement is likely to begin. The next major resistance is near US$ 16,200.
However, the RSI still shows signs of negative divergence, which generally acts as a reliable warning sign that momentum may be weakening. But in a strong bullish trend, the divergence may end up being a false signal unless the price falls.
This optimistic view will be invalidated if the price drops from current levels and the BTC/USD pair plummets below the 20-day MME.
The move will suggest that bears are attempting a recovery and will likely gain strength if the pair drops below the $12,460 support.
The bulls bought the drop in the bullish trend line on November 3rd and today followed with the break in the bearish trend line and resistance of $395. This suggests that the short term correction on Ether (ETH) may be over.
The 20-day MME (US$388) has begun to rise and the RSI has jumped into positive territory, suggesting that the bulls are in the lead. If they can push the ETH/USD pair above US$420, the rise may extend to US$450 and then US$488,134.
This optimistic view will be invalidated if the pair falls from current levels or overload resistance and falls below the 50-day simple moving average ($372).
The bulls bought back the drop to $0.2295 support on Nov. 3, but failed to boost the XRP above moving averages. This suggests that the bears are aggressively defending this resistance.
The 20-day MME drop (US$0.244) and the RSI in negative territory suggest that bears are in control.
If they can sink the price below US$ 0.2295, the XRP/USD pair could fall to US$ 0.219712. A breach below this support could resume the bearish trend with the next support at $0.19.
Contrary to this assumption, if the pair recovers from current levels and rises above moving averages, then a few more days of action within the range are likely.
Bitcoin Cash (BCH) plummeted to $231.93 on Nov. 3, but the bulls bought this fall, as can be seen in the long tail of the sail. Today, again, buyers came on the scene and bought the fall up to US$230.90.
This strong recovery suggests that the bulls are aggressively trying to defend the $231.93 support. However, the 20-day MME drop ($255) and RSI below 42 suggests that bears are in charge.
Therefore, bears are likely to sell high for the 20-day MME. If the BCH/USD pair falls from current levels or air resistance and drops below US$ 231.93, the drop could extend to US$ 210 and then US$ 200.
This negative view will be invalidated if the pair gains momentum and rises above the 20-day MME. If this happens, the pair could rise back into the $272-280 resistance zone.
The Chainlink (LINK) broke below the bullish trend line today, but the bulls bought the fall to $9.7665 support. However, the bears will try to stop the retraction at the 20-day MME ($11) and then at $11,199.
Both moving averages are falling and the RSI has fallen below 44, suggesting that the bears are at an advantage. If bears can sink the price below US$ 9.7665, the LINK/USD pair could fall to US$ 8.3817 and then to US$ 6.90.
This bearish view will be invalidated if the bulls base themselves on the current jump and push the price above $11,199. Such a move will increase the possibility of a high to US$ 13.28.
The Binance Coin (BNB) closed below US$28.43 on Nov. 2, which completed a double top pattern. This setup has a target of $24.86, but the bulls are currently trying to defend support at $25.6652.
However, the 20-day MME drop ($28) and the RSI below 37 suggest that the path of least resistance is to the downside. If bears sink the price below US$25.6652, the drop can be resumed, with the next major support at US$22.
This bearish view will be invalidated if the bulls buy the current drop and push the BNB/USD pair back above US$ 28.43. Such a move will open the possibility of a high to $32.
The bulls aggressively bought Litecoin (LTC) in drops to $51,2027 on Nov. 3 and bought back the drop to $51,6109 today, as seen by the long tails in the sails. This suggests that the bulls are defending the $52.36 to $51 support zone.
If buyers can sustain the price above the 20-day MME (US$53), a high to US$56.50 is possible. However, the 20-day flat MME and the RSI just above the mid-point suggest a balance between supply and demand.
If the LTC/USD pair falls from current levels, bears will again attempt to sink the price below the support zone. If successful, the sale may intensify and the pair may fall to the next $46 support.
Bears are trying to sink Polkadot (DOT) below US$3.80. If they can do that, altcoin can fall to critical support at $3.5321. A break below this support could start a new bearish trend.
Both moving averages are dropping and the RSI continues to trade in the negative zone, suggesting bears are in control. A drop below $3.5321 could extend to $2.60 and then $2.00.
This downturn will be invalidated if bulls defend the support zone from US$3.80 to US$3.5321 and push the price above moving averages. This move could keep the DOT/USD pair limited for a few more days.
The long tail on the November 3 sail shows that the bulls are buying Cardano (ADA) in drops to $0.0893, but today’s price action suggests they are unable to sustain momentum at higher levels.
The 20-day MME drop (US$0.0990) and the RSI in the negative zone suggest bears are in the lead. Therefore, they may try to sell the 20-day MME retreat. If the ADA/USD pair falls below $0.0893, it may fall to $0.0755701.
This negative view will be invalidated if the bulls can push the price above the moving averages. In that case, it is possible to move to US$ 0.104044 and then to US$ 0.1142241.
The Bitcoin SV (BSV) jumped from US$145.20 on Nov. 3 and the bulls are again trying to recover from the US$146.12 level today. This suggests that the bulls are accumulating in drops to the $146.20 to $135 support zone.
However, unless the bulls push the price back above the rising trend line and moving averages in the next few days, the bears will again try to sink the BSV/USD pair below the support zone.
If they succeed, the pair could start a new downtrend which could result in a decline to $100. The 20-day MME decline (US$ 164) and the RSI in negative territory suggest that the path of least resistance is the downside.