The crypto world is abuzz with the news that Bitcoin (BTC) is attempting to remain above the overhead resistance of $38,000 for the second consecutive day, potentially signaling the start of the next leg of the uptrend. This excitement has been further fueled by the United States Securities and Exchange Commission (SEC) delaying its decision on the applications of Franklin Templeton and Hashdex exchange-traded funds. According to Bloomberg ETF analyst James Seyffart, who expressed his views on X (formerly Twitter), the SEC may be lining every applicant up for potential approval by the Jan. 10, 2024 deadline.
Joshua Lim, head of derivatives at Genesis Trading, took to X to warn that traditional finance investors have already bought the rumor and may exit the trade close to the ETF announcement when retail tries to get in. Nevertheless, the macroeconomic conditions in early 2024 may limit the downside, as Pershing Square Capital Management CEO and founder Bill Ackman remarked in an interview with Bloomberg that the U.S. Federal Reserve will cut rates sooner than people expect, with rate cuts beginning in Q1 instead of the mid-year market expectations.
As the crypto space awaits the potential ETF listing, many are wondering if Bitcoin and altcoins could witness a shallow correction before resuming their uptrend? To answer this question, let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin price analysis
On Nov. 28, Bitcoin broke through the $37,980 resistance, but the bulls were not able to keep the price above it, indicating that the bears are strongly defending this level.
Repeated attempts to break through the resistance tend to weaken it. If the bulls manage to keep the price above the 20-day exponential moving average ($36,820), the probability of a surge to $40,000 increases. This level may act as a significant barrier.
In order to prevent the uptrend, the bears need to quickly push the price below the 20-day EMA and the uptrend line. This could start a decline to the solid support at 34,800. If there is a strong bounce off this crypto sol, the BTC/USDT pair could remain within the wide range between $34,800 and $38,000 for some time.
Ether price analysis
When Ether (ETH) found support at the 20-day EMA ($2,006) on Nov. 27 and 28, it indicated that crypto bulls view the dips as a buying opportunity.
Bulls could face stiff resistance in the zone between $2,137 and $2,200, but if buyers don’t give up much ground, it could increase the possibility of a rally above $2,200. In that case, the ETH/USDT pair will complete a large ascending triangle pattern, potentially starting a new uptrend with a pattern target of $3,400.
On the other hand, if the price turns down and breaks below the 20-day EMA, it would signal that crypto bears are trying to get back in the game. The pair may then slump to the 50-day SMA ($1,853).
BNB price analysis
The bears attempted to push BNB (BNB) below the $223 support on Nov. 27, but the bulls did not surrender. This implies demand at lower levels.
The bulls must force the price above the 20-day EMA ($235) to initiate a significant recovery. The BNB/USDT pair could then try to rally to $265, where the bears may again put up a solid resistance.
If the price turns down again from the 20-day EMA, it will suggest that the bears are attempting to turn the level into resistance. This will increase the chances of a drop below $223. If this level gives way, the pair may plunge to $203.
XRP price analysis
XRP (XRP) has been in the midst of a tug-of-war between the bulls and the bears, trading between the moving averages over the past few days.
The slightly downsloping 20-day EMA ($0.61) and the RSI near the midpoint provide no clear indication of which side is winning.
If crypto avax buyers push the price above the 20-day EMA, the XRP/USDT pair could surge to $0.67. Conversely, if the price turns down sharply from the 20-day EMA and drops below the 50-day SMA ($0.58), it will indicate that crypto avalanche bears are gaining the upper hand. The selling pressure could increase further if the pair slides below $0.56.
Solana price analysis
The crypto SOL snapped back from the 20-day EMA ($54.71) on Nov. 28, suggesting that the sentiment remains positive.
The bulls are attempting to push the price above the immediate resistance at $62.10. If successful, the SOL/USDT pair could climb to the local high at $68. The bulls must overcome this resistance in order to invalidate the head-and-shoulders pattern, which could signal a sharp rally in the pair to $85.
The $51 level remains the key support on the downside. A break and close below this level could start a deeper correction toward the 50-day SMA ($42.25).
Cardano price analysis
Cardano (ADA) dropped to the 20-day EMA ($0.38) on Nov. 27, however, crypto sols defended the level. This indicates that bulls are actively buying at lower prices.
The rising lows of recent days increases the odds of a breakout above $0.40. If the buyers manage to push the price above this level, the ADA/USDT pair could gain traction and reach $0.42 and later $0.46.
The bears are running out of time. To regain control, they would need to push the price below the 20-day EMA. This could trigger stops of short-term traders and the pair could drop to the strong support at $0.34.
Dogecoin price analysis
Dogecoin (DOGE) has been repeatedly taking support at the 20-day EMA ($0.08), indicating that lower levels are being purchased.
The crypto avax and crypto top are showing an upsloping moving averages and the RSI in the positive territory, suggesting that the path of least resistance is to the upside. Buyers will try to propel the crypto sol to $0.09 and next to $0.10, where they are likely to encounter selling by the bears.On the downside, the 20-day EMA remains the key level to watch out for. If this level crumbles, the DOGE/USDT pair may drop to the 50-day SMA ($0.07) and subsequently to the crucial support at $0.06.
Toncoin price analysis
Toncoin (TON) has been trading above the 20-day EMA ($2.37) for the past few days, but the bulls are struggling to push the price to $2.59, suggesting that demand dries up at higher levels.
The bears will try to gain the upper hand by yanking the price below the moving averages. If they manage to do that, the TON/USDT crypto pair could decline to the psychological level of $2 and then to $1.89.
On the upside, the first hurdle is at $2.59. If buyers surmount this resistance, the crypto pair could rally to $2.77. Sellers may offer stiff opposition in the zone between $2.77 and $2.90, but if bulls do not allow the price to dip below $2.59, a new uptrend to $4.03 could begin.
Chainlink price analysis
Chainlink (LINK) was recently supported at the 20-day EMA ($14.07), which suggests that the bulls are determined to protect this level.
The LINK/USDT pair is likely to face selling pressure at the $15.40 mark, as bears have successfully held this resistance during three previous attempts. If the price turns down from $15.40, it could lead to a drop to $12.83.
On the other hand, if the crypto bulls can push the price above $15.40, the pair may challenge the local crypto high of $16.60. If this level is breached, the up-move could resume and the pair may reach $18.30.
Avalanche price analysis
The crypto AVAX/USDT pair rebounded off the 20-day EMA ($19.35) on Nov. 28, indicating that traders are buying on dips and the sentiment remains positive.
The bulls will have to break the resistance at $22 to strengthen their position. If they succeed, the pair could surge to $24.69. However, sellers are likely to defend this level as it is needed to be broken for the pair to travel to $28.50.
On the other hand, if the price turns down from $22, it will suggest that bears remain active at higher levels. If they sink the pair below $18.90, the advantage will tilt in favor of the bears.
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