Professional traders are often perceived to be the smartest as they weigh the risks before investing in an asset class. Opposite to that, most retail traders only keep an eye on the possible profits and disregard the risk before investing.
Therefore, the increase in the number of Bitcoin (BTC) addresses holding more than 100 Bitcoin to a seven-month high, at 16,271, could be considered as a bullish sign. Furthermore, the low search volume for the keyword “Bitcoin” suggests that the current rally lacks the frenzied retail buying seen during the previous bull market in 2017.
PlanB, the creator of the stock-to-flow model, has maintained his bullish stance on Bitcoin as he expects the price to at least rally to $100,000 by December 2021. If that happens, Bitcoin would command a market capitalization of about $2 trillion.
While crypto analysts are voicing bullish forecasts for Bitcoin, noted economist and Bitcoin skeptic Nouriel Roubini remains bearish as he anticipates central bank digital currencies to start a big revolution in about three years. Thereafter, “not only you don’t need crypto, you don’t even need Venmo,” said Roubini in a recent interview.
In other news, U.S. equity markets surged higher on the positive news that Pfizer is recording success in its COVID-19 vaccine trials. As the news broke, gold and Bitcoin prices corrected sharply but it appears that crypto investors are viewing the dips as buying opportunities.
Let’s take a look at the top crypto assets to see how they are performing today.
Bitcoin (BTC) is in an uptrend but is currently facing stiff resistance near $16,000. The failure to rise above the overhead resistance could attract profit booking from the short-term traders and shorting by the aggressive bears.
If the BTC/USD pair breaks below $15,650, it could drop to the critical support at $14,000. The 20-day exponential moving average ($13,935) is placed just below this support, hence, the bulls are likely to defend this level aggressively.
A strong bounce off the 20-day EMA will indicate accumulation by the bulls at lower levels. The price could remain stuck between $14,000 and $16,000 for a few days before starting the next trending move.
If the bulls can push the price above $16,000, a rally to $17,200 and then to the all-time highs is possible. Conversely, a break below the 20-day EMA could result in a fall to the 50-day simple moving average ($12,137).
The bulls are struggling to push the price above the resistance line of the rising wedge pattern. Ether (ETH) formed an inside day candlestick pattern on Nov. 8 and is currently trading in a tight range. This suggests indecision among the bulls and the bears.
If the bears sink the price below $432, the possibility of a drop to the 20-day EMA ($409) increases. A break below the support line of the wedge will indicate an advantage to the bears.
However, the upsloping 20-day EMA and the relative strength index in the positive zone suggest an advantage to the bulls. If they can push the price above the wedge, the ETH/USD pair could rally to $488.134.
A breakout of this resistance could resume the uptrend with the next target at $520 and then $550.
XRP attempted to break out of the range on Nov. 7 but the bears pushed the price right back in. The bulls are currently attempting to defend the moving averages. If they succeed, another attempt to push the price above $0.26 is likely.
If the price sustains above $0.26 for a day, the XRP/USD pair could start a new uptrend with the first target objective at $0.30.
However, the flat moving averages and the RSI near the midpoint suggest a balance between supply and demand. If the price slips below the moving averages, the pair could remain range-bound between $0.26 and $0.2295 for the next few days.
A break below the $0.2295 to $0.219712 support zone will tilt the advantage in favor of the bears.
Bitcoin Cash (BCH) broke above $272 for the past two days but could not sustain the higher levels. The repeated price rejection shows that the bears are aggressively defending the $272 to $280 resistance zone.
If the bears sink the price below the 20-day EMA ($257), the BCH/USD pair could drop to $242 and then to $231. Such a move will indicate the possibility of a range-bound action between $231 and $280 for a few days.
However, the upsloping moving averages and the RSI in the positive zone suggest a minor advantage to the bulls. If the bulls can push the price above the overhead resistance zone, a rally to $300 and then to $326.30 is possible.
The bulls tried to propel Chainlink (LINK) above the $13.28 resistance on Nov. 7 but failed. However, the positive thing is that the altcoin bounced off the 20-day EMA ($11.46) and the bulls are again trying to push the price above the overhead resistance.
If they succeed, it will complete a bullish inverse head and shoulders pattern that has a target objective of $19.2731. The 20-day EMA ($11.46) has started to turn up gradually and the RSI is in the positive territory, which suggests a minor advantage to the bulls.
However, if the price again turns down from the overhead resistance, the bears will try to sink the LINK/USD pair below the moving averages. If they succeed, a drop to $9.7665 is possible.
Binance Coin (BNB) is stuck between $32 and $25.6652 for the past few days. The bulls attempted to push the price above the moving averages on Nov. 7 but they failed.
The downsloping 20-day EMA ($28) and the RSI in negative territory suggest that bears have the upper hand. If the price sustains below the moving averages, a drop to $25.6652 is possible.
A bounce off this support could extend the stay inside the range for a few more days while a break below it could start a new downtrend.
This negative view will be invalidated if the BNB/USD pair turns up from the current levels and breaks above $30. Such a move could result in a rally to $32.
Litecoin (LTC) once again turned down from the stiff overhead resistance of $64 on Nov. 7. Barring the breakout on Aug. 17, the price has turned down from this resistance on three occasions.
The RSI is forming a bearish divergence, which suggests that the momentum may be weakening.
If the LTC/USD pair turns down from the current levels or the overhead resistance and plummets below the 20-day EMA ($56), it will increase the possibility of a drop to the 50-day SMA ($50).
On the other hand, if the pair rebounds off the 20-day EMA, the bulls will make one more attempt to push the price above $64. If they succeed, a rally to $68.9008 is possible.
Polkadot (DOT) is currently trading inside a small range that has resistance at $4.95 and support at $3.80. The price turned down from $4.8586 on Nov. 7, which shows that the bears are aggressively defending this level.
However, the bulls are trying to keep the price above the moving averages and the RSI has also taken support at the 50 level. If the RSI can break out of the downtrend line, it will indicate an advantage to the bulls.
If buyers can push the price above $4.95, a rally to $5.5899 is likely. The bears may again defend this level aggressively but if the bulls can thrust the price above it, a new uptrend could begin.
Cardano (ADA) turned down from the $0.1142241 resistance on Nov. 7, which shows that the bears are aggressively defending this level. However, the positive thing is that the bulls have not allowed the price to dip below the moving averages.
The strong rebound off the moving averages on Nov. 8 shows that the sentiment is to buy the dips. The bulls will again attempt to push the price above the overhead resistance. If they can pull it off, the ADA/USD pair could rally to $0.128 and then to $0.1445.
On the contrary, if the price again turns down from $0.1142241, then the range-bound action may continue for a few more days. A break below the moving averages will signal weakness and the bears will then try to sink the pair below $0.0893.
Bitcoin SV (BSV) continues to trade inside the broad range of $146 to $181. The price has been oscillating above and below the moving averages for the past three days, which shows that traders are undecided about the next move.
The flat moving averages and the RSI close to the halfway mark suggest a balance between supply and demand. If the price sustains below the moving averages, the bears will try to sink the BSV/USD pair to the critical support at $146.
A rebound off this level could extend the range-bound action for a few more days. The trend will shift in favor of the bulls if they can push the price above the overhead resistance at $181.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.