Bitcoin (BTC) has rebounded remarkably from its lows in March and this performance is catching the attention of institutional investors. Most recently Rick Rieder, CIO of Fixed Income at BlackRock, He said Bitcoin could replace gold as it is “more functional than passing a gold bullion.”
Comments like this are a positive sign, as they demonstrate that the narrative that Bitcoin is increasingly viewed as digital gold, Even among traditional investors, it has gained more acceptance.
A. new report from cryptocurrency investment firm Pantera Capital is attributing the recent spike in Bitcoin price to PayPal’s new cryptocurrency service. According to Pantera, the data shows that “PayPal is already buying nearly 70% of the new supply of bitcoins” and Cash Cash the other 30%, which has created a real supply shortage.
Those who ignore Bitcoin have long said that the asset is too volatile, But an investigation by investment management firm Van Eck found that about 51% of S&P 500 shares in a 90-day period are equal to or more volatile than Bitcoin.
Findings like this could attract more investors to cryptocurrencies if the data were widely known.
Investors are now wondering will the Bitcoin price reach a new peak always next week and will altcoins follow the current trend.
Let’s analyze the charts of the top five cryptocurrencies to determine the path of least resistance and ascertain the levels to be considered on the rise and fall.
BTC / USD
Bitcoin (BTC) formed a Doji candlestick pattern on November 21 and resolved lower earlier today. In solid progress, corrections usually last one to three days and then the trend resumes.
The strong bounce from today’s intraday lows suggests buyers are grappling with every drop. If the bulls can now push the price above $ 18,695.75, we may see a move toward a record high.
If buyers can push the price above $ 20,000, the BTC / USD pair could pick up momentum and form a blow-away peak.
One thing to note is that the BTC / USD pair has not corrected significantly since this current phase of the move up began at the $ 10,500 level.
The price has not even pulled back to the 20-day exponential moving average ($ 16,493) since Oct. 8, suggesting there has been a buy stampede.
If the pair turns down from current levels and falls below $ 17,629, the slide could extend to the 20-day EMA. Bulls are likely to buy closer to this support as the trend continues to be strong.
The Relative Strength Index (RSI) on the 4-hour chart has formed a bearish divergence, which is a negative sign. However, the failure of the bears to hold the price below the 20 day EMA suggests that bulls accrue strongly at the lower levels.
If the bulls can maintain the price above the downtrend line, the overhead resistance can be retested at $ 18,965.75.
On the other hand, If the price drops down from current levels and falls below $ 17,600, the chances of us seeing a break below $ 17,200 will increase.
ETH / USD
Ether (ETH) picked up momentum on November 20 after the price shot above the above resistance at $ 488,134. The largest altcoin quickly covered land and rallied to an intraday peak of $ 561,223 earlier today.
The Bitcoin correction also led to a profit ordering in the ETH / USD pair earlier today, but the long tail on the candle shows 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 set at $ 625. The moving averages are rising and the RSI in the over-thinking zone is suggest that the bulls have the upper hand.
This bullish view will be reversed if the bears manage to sink the price below today’s intraday minimum of $ 511,769. Such a move could attract aggressive sales and increase the possibility of a dip below critical support at $ 488,134.
The 4-hour chart shows that bulls aggressively bought the dip into the 20-day EMA. Now they will try to take the price above the maximum resistance. If it gets its way, the uptrend could resume.
Conversely, if the price falls from current levels or from the highest resistance, the bears will attempt to sink the pair under the 20-day EMA. If this happens, the slide could drag the price to critical support at $ 488,134.
XRP / USD
XRP was up 40.48% on November 21. This strong rally suggests that traders are buying driven by the FOMO. However, when underperforming altcoins start to skyrocket, it generally implies that the bull’s phase has begun in its final phase.
The psychological level of $ 0.50 saw traders take their profits earlier today and the price went back slightly above the 38.2% Fibonacci level at $ 0.393344. The long tail of the candle shows strong purchases at the lower levels.
If the altcoin rises above $ 0.46, the bulls will once again try to resume the uptrend by pushing the price above $ 0.50. If successful, the rally could stretch to $ 0.60 and then to $ 0.75.
Expanding volatility on November 21 and today has pushed the RSI deep into over-thought ground. Thus, the XRP / USD pair can enter a cooling and consolidation phase for a few days before starting its next trend move.
This opinion will be invalid if the bears sink the price below $ 0.39, Since next support is at 50% Fibonacci level at $ 0.361738.
The 4-hour chart shows that bulls buying during the dips are closer to the $ 0.40 levels, but struggling to hold the price above $ 0.46. This suggests that traders are selling at small rallies.
If the bulls push the price above $ 0.46, the $ 0.495663 level can be retested. A cut above this resistance could resume the uptrend.
Conversely, if the price turns down from the current levels or from the $ 0.46 level, we may see a deeper correction to the 20-day EMA.
LTC / USD
Litecoin (LTC) is in a solid rise and the bulls pushed the price above the $ 84.3374 upside resistance on November 21. However, the buyers could not maintain the position, suggesting an earnings reserve at the higher levels.
Today, bears sank the price back to under $ 84.3374, but the long tail of the candle shows buy at the lower levels. If the bulls can push the price back above $ 84.3374 and sustain the cut, the LTC / USD pair could resume the uptrend and rally to $ 100.
However, if the bears defend the resistance at $ 84.3374, the pair could fall to the Fibonacci level of 38.2% at $ 72.5521. This support is slightly higher than the 20-day EMA ($ 69), so the bulls can aggressively defend this zone. The advantage will move in favor of the bears if they manage to sink the price below $ 67.
The 4-hour chart shows that sales intensified after bears dragged the price below $ 84.3374, but sellers were unable to take advantage of the 20-day EMA discount. The pair bounced off intermittent lows and reached overhead resistance.
If the bulls can maintain the price above $ 84.3374, the uptrend could resume. On the other hand, if the price drops down from current levels and falls below $ 78, the pair could hit the 50-simple SMA which is at $ 75.
DASH / USD
Dash (DASH) rose on November 21 and closed slightly above its overhead resistance at $ 94.1813. The bulls tried to resume the upward movement earlier today, but rejected the $ 95.4549 price.
Failure to keep the price above $ 94.1813 could have attracted a profit pool from short-term traders.
The first support on the downside is the 38.2% Fibonacci score level at $ 82.7761. If the price bounces above this level, the bulls will once again try to resume the uptrend by pushing the DASH / USD pair above $ 95.4549. The next upside target is $ 104 followed by $ 110.
Contrary to this assumption, if the bears manage to sink the price below $ 82.7761, we may see a deeper correction toward the 20-day EMA ($ 78).
The pair bounced off the 20-day EMA on the 4-hour chart. If the rebound maintains the price above $ 91, the bulls will once again try to resume the increase by pushing the price above $ 95.4549.
On the other hand, if the pair turns down from current levels and the bears manage to sink the price below the 20-day EMA, the bulls will seek to halt the decline in the 50-day SMA .
If they don’t, the pair could fall to the 50% Fibonacci level at $ 78.8596, and if this support also fails, then the next support is at a 61.8% Fibonacci level at $ 74.9413.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and business move involves risks, you have to do your own research when making a decision.