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5 Cryptocurrencies You Should Follow This Week

Cryptocoin – Bitcoin leaping sharply from its intraday lows today indicates a possible move to all-time highs and certain altcoins may join the party.

Bitcoin (BTC) made a spectacular return from March 2020 lows, and this performance is noticed by institutional investors. Recently, Rick Rieder, BlackRock’s fixed income CIO, said that Bitcoin could replace gold because it is “more functional than running a gold nugget around it.”

 

Such comments are a positive sign as it shows that the Bitcoin narrative is increasingly seen as digital gold even among traditional investors.

A new report by crypto investment firm Pantera Capital attributes the recent increase in Bitcoin’s price to PayPal’s new crypto service. According to Pantera, the data show that “PayPal has already bought almost 70% of the new bitcoin supply” and creates a real supply shortage with Cash App, which takes the remaining 30%.

Bitcoin opponents have long described the asset as very volatile, but research by investment management firm Van Eck found that around 51% of stocks in the S&P 500 were equal to or more volatile than Bitcoin, based on 90-day movement.

Such findings could attract more investors to cryptocurrencies if the data is widely known.

 

Investors are now wondering if the Bitcoin price will hit an all-time high next week and whether altcoins will follow.

Let’s examine the charts of the top five cryptocurrencies to identify the path of least resistance and critical levels up and down.

Bitcoin

Bitcoin (BTC) created a Doji candlestick pattern on November 21, and this has been resolved negatively today. In a strong uptrend, corrections usually take one to three days and then the trend continues.

Strong recovery from intraday lows indicates that buyers are accumulating on every bottom. If the bulls can now push the price above $ 18,695.75, a rally to an all-time high is possible.

If buyers can push the price above $ 20,000, the BTC / USD rate could gain momentum and create a booming peak.

One point to note is that the BTC / USD pair has not improved significantly since the current leg of the rally started at $ 10,500.

The price has not even retreated to the 20-day exponential moving average ($ 16,493) since October 8. This indicates that there is a purchase stampede.

If the pair drops from current levels and drops below $ 17,629, the decline could extend to the 20-day EMA. Bulls are likely to buy closer to this support as the trend remains strong

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The relative strength index (RSI) on the 4-hour chart showed a bearish trend, which is a negative sign. However, the bears’ inability to keep the price below the 20-EMA indicates a strong bullish accumulation at lower levels.

If the bulls can keep the price above the downtrend line, it is possible to retest the overall resistance at $ 18,965.75.

On the other hand, if the price drops from current levels and drops below $ 17,600, the probability of breaking below $ 17,200 increases.

Ethereum

Ethereum (ETH) gained momentum on November 20 after rising above the overall resistance of $ 488,134. The largest altcoin quickly covered the ground and rose to an intraday high of $ 561,223 today.

The correction in Bitcoin also resulted in a profit booking for the ETH / USD today, but the long tail on the candlestick indicates aggressive buying at lower levels.

If the bulls can push the price above $ 561,223, the uptrend could continue with the next target of $ 625. The upward moving averages and the RSI in the overbought zone suggest the bulls are in control.

This bullish view will be rejected if the bears can pull the price below $ 511,769, today’s low. Such a move could attract aggressive selling and increase the likelihood of falling below the critical $ 488,134 support.

The 4-hour chart shows the bulls are aggressively buying the decline to the 20-EMA. They will now try to push the price above the general resistance. If they are successful, the uptrend can continue.

Conversely, if the price falls from current levels or general resistance, the bears will try to push the rate below the 20-EMA. If this happens, the decline could extend to the critical support of $ 488,134.

Ripple (XRP)

XRP rose 40.48% on November 21st. This sharp rise indicates that traders are panicking buying due to FOMO. However, when underperformers begin to rise rapidly, it usually indicates entering the final leg of the bull phase.

The psychological level of $ 0.50 pulled profit taking by traders today, and the price has just moved above the 38.2% Fibonacci retracement level of $ 0.393344. The long tail on the candlestick indicates a strong buy at low levels.

If the Altcoin breaks above $ 0.46, the bulls will try to resume the uptrend again by pushing the price above $ 0.50. If they succeed, the rally could rise to $ 0.60 and then to $ 0.75.

On November 21st and the expansion of today’s surge pushed the RSI deep into the overbought zone. Therefore, XRP / USD may enter a dry cooling period and consolidate for a few days before starting the next trend move.

This view will be invalid if the bears pull the price below $ 0.39, as the next support is at $ 0.361738 in the 50% Fibonacci retracement.

The 4-hour chart shows that the bulls are buying near $ 0.40 levels but trying to keep the price above $ 0.46. This shows that traders are selling on small rallies.

If the bulls can push the price above $ 0.46, a retest of $ 0.495663 is possible. A break above this resistance could continue the uptrend.

Conversely, if the price drops from current levels or $ 0.46, a deeper correction for the 20-EMA is possible.

Litecoin

Litecoin (LTC) is in a strong uptrend and the bulls pushed the price above the overall resistance of $ 84.3374 on November 21st. However, buyers could not continue to break, indicating higher levels of profit taking.

 

Today, the bears pulled the price below $ 84.3374, but the long tail on the candlestick is showing lower buying. If the bulls can push the price above $ 84.3374 and continue the break, the LTC / USD pair could continue its upward trend and rise to $ 100.

However, if the bears defend the $ 84.3374 resistance, the pair could drop to the 38.2% Fibonacci retracement level from $ 72.5521. This support is just above the 20-day EMA ($ 69). Therefore, the bulls are likely to defend this area aggressively. If they can lower the price below $ 67, the advantage will shift in favor of the bears.

 

The 4-hour chart shows that the sale intensified after the bears pulled the price below $ 84.3374, but sellers were unable to take advantage of the break below the 20-EMA. The pair bounced off from intraday lows and reached general resistance.

If the bulls can keep the price above $ 84.3374, the uptrend could continue. On the other hand, if the price drops from current levels and drops below $ 78, the pair could correct the 50 simple moving average at $ 75.

DASH

Dash (DASH) rose on November 21 and closed at $ 94.1813 just above overall resistance. The bulls tried to continue bullish today but the price dropped from $ 95.4549.

This suggests that failure to keep the price above $ 94.1813 could attract short-term traders to take profit.

The first support on the downside is the 38.2% Fibonacci retracement level of $ 82.7761. If the price returns to this level, the bulls will try to restart the uptrend by pushing the DASH / USD pair above $ 95.4549. On the upside, the next target is $ 104 followed by $ 110.

Contrary to this assumption, if the bears pull the price below $ 82.7761, a deeper correction to the 20-day EMA ($ 78) is possible.

The pair is back from the 20-EMA on the 4-hour chart. If the reversal continues above $ 91, the bulls will try to continue the uptrend once again by pushing the price above $ 95.4549.

On the other hand, if the pair falls from current levels and the bears lower the price below the 20-EMA, the bulls will try to stop the fall at the 50-SMA.

If they can’t, the pair could drop from $ 78.8596 to the 50% Fibonacci retracement level and if that support is broken, the next support is at $ 74.9413 at the 61.8% Fibonacci retracement level.

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