Bitcoin (BTC) has seen a significant improvement in sentiment this year, with a more than 120% year-to-date rise. Data from BitInfoCharts shows that the number of crypto wallets holding more than $1 million in Bitcoin has jumped from 23,795 on Jan. 1 to 81,925 currently.
Although the crypto asset has seen a strong rally, investors may be wary this week as they await the release of the Consumer Price Index data on Nov. 14 and the Producer Price Index data on Nov. 15, as well as the Nov. 17 deadline to avoid a partial United States government shutdown. This could lead to short-term volatility.
This short-term pullback may be beneficial for the long-term trend of the market, and traders may view it as a buying opportunity. Analysts are expecting Bitcoin to rally in 2024, likely buoyed by the anticipated approval of a spot Bitcoin exchange-traded fund.
Will Bitcoin and select altcoins experience a short-term correction, or will the bulls keep up their buying pressure and break through their respective overhead resistance levels? Let’s analyze the charts to find out.
S&P 500 Index price analysis
On Nov. 9, the S&P 500 Index (SPX) demonstrated a rebound from the neckline, suggesting that the bulls are taking advantage of every minor dip.
The 20-day exponential moving average (4,319) has started to go up, and the relative strength index (RSI) has moved into the positive area, indicating that the bulls are in control. If the index surpasses the downtrend line and closes above it, it will open the way for a rally to 4,512.
Nevertheless, the bears are unlikely to give up easily. They will strive to protect the downtrend line and push the price below the neckline. If they are successful, the index might drop to the 20-day EMA. To gain the upper hand, the sellers will have to bring the price below the 20-day EMA.
U.S. Dollar Index price analysis
The U.S. Dollar Index (DXY) dropped below the descending channel pattern on Nov. 3, but the bears were unable to take advantage of this and initiate a deeper correction.
This triggered a recovery, which has now reached the 20-day EMA (105.92). If the price sharply declines from the current level, it would suggest that sentiment has become negative and traders are selling at the 20-day EMA. This could push the price down to the 38.2% Fibonacci retracement level of 104.38.
Conversely, if the bulls are able to push the price above the 20-day EMA, the index could rise to the resistance line of the descending channel pattern.
Bitcoin price analysis
Bitcoin has been trading close to the resistance line of the channel over the past four days, but the bulls have been unable to launch the next upward move. This implies that there is limited buying pressure at higher levels.
If the price drops back inside the channel, it will point to the breakout on Nov. 9 being a bull trap. Short-term traders may lock in profits, pushing the price towards the 20-day EMA ($34,961).
The overbought level on the RSI also suggests a potential correction or consolidation in the short term. The correction could extend to $32,400 and then to $31,000 if the bears pull the BTC/USDT pair below the channel.
On the other hand, if the price turns up sharply and breaks above $38,000, it would indicate the start of a rally towards $40,000.
Ether price analysis
Ether (ETH) bounced back from the $2,000 psychological level on Nov. 12, suggesting that buyers are trying to convert it into support.
Traders will likely make one more attempt to breach the barrier at $2,200. If successful, the ETH/USDT pair could gain momentum and rise towards $3,000, as there are no major resistance levels in between.
On the other hand, bears might have other plans. They are expected to put up a strong defense at $2,200. If the price turns down from this level, the pair may consolidate between $2,000 and $2,200 for a few days. The short-term trend will become bearish if the price breaks and stays below $2,000. The pair may then fall to the 20-day EMA ($1,908).
BNB price analysis
In the recent days, BNB (BNB) has been trading in a range between $240 and $258, leading to the RSI leaving the overbought zone. The 20-day EMA, which is currently sloping upwards ($238), and the RSI being in the positive territory point to the bulls having an advantage. If the price bounces off the 20-day EMA, the bulls will try to drive the BNB/USDT pair towards $265, but there will likely be a tough battle between the bulls and the bears at that level. If they manage to break through, the pair may surge to $285.
On the downside, the bears must push the price below $235 to signal the start of a deeper pullback to the 50-day SMA ($222).
XRP price analysis
XRP (XRP) has been trading below $0.67 in the past few days, but the bulls have not allowed the price to skid below the 20-day EMA ($0.62), which is a positive sign.
The tight consolidation near $0.67 increases the chances of a break above it. If that happens, the XRP/USDT pair could jump to $0.74, although this level may be hard to break. However, if successful, it could trigger a rally towards $0.85.
On the other hand, if the price turns down and breaks below the 20-day EMA, it will indicate that the bulls have given up. That could cause the pair to plunge towards the next significant support at $0.56.
Solana price analysis
Solana (SOL) has seen a massive surge in its price above the $48 resistance on Nov. 10 and even went past the $59 mark on Nov. 11, but the bulls have been met with strong resistance from the bears.
The recent rally has pushed the RSI above 88, which suggests that the rally may be overextended and a correction or consolidation may be on the horizon. If the price turns down from its current level, the SOL/USDT pair could slide to $48. This level is likely to draw buyers who will try to turn $48 into support.
On the other hand, if the $48 level fails to hold, it will indicate that traders are leaving the market. The pair may then drop to the 20-day EMA ($43).
Cardano price analysis
On Nov. 10, Cardano (ADA) managed to push past the barrier at $0.38, but the bulls were unable to maintain the recovery. This suggests that the bears are strongly defending the $0.38 level.
The sellers may try and drag the price down to the 20-day EMA ($0.34). To keep their hold, the bulls must vigilantly protect the 20-day EMA. A strong rebound from this point could increase the chances of the ADA/USDT pair rising above $0.38. It may first go up to $0.42 and then to $0.46.
Alternatively, if the price continues downwards and drops below the 20-day EMA, it could mean that the pair may stay inside the wide range between $0.24 and $0.38 for some time.
Dogecoin price analysis
Dogecoin (DOGE) moved above $0.08 on Nov. 11, but the bulls weren’t able to keep up the increased levels, as seen from the long wick on the day’s candlestick.
The failure to stay above the overhead resistance has triggered a pullback toward the 20-day EMA ($0.07). Buyers will try to protect this level and start a rebound from it. If they succeed, the DOGE/USDT pair could rally to $0.08. This is an important point to watch out for since a break above it could open the way for a surge to $0.10.
On the other hand, a break and close below the 20-day EMA will signal that the pair may remain range-bound between $0.06 and $0.08 for some time.
Chainlink price analysis
The recent surge in Chainlink’s (LINK) price pushed the RSI above 86, showing that the rally was overbought in the short term. This could have encouraged short-term traders to take profits around $16.60 on Nov. 12. The LINK/USDT pair may then pull back to the 38.2% Fibonacci retracement level of $14.27 and then to the 50% retracement level of $13.55.
The real challenge will be at the 20-day EMA ($13). A strong rebound from this level will suggest that buyers still view dips as buying opportunities. This could cause the price to rise back to $16.60. If this level is broken, the pair could reach $18. However, if the price dips and stays below the 20-day EMA, this bullish outlook will be invalidated in the near future.
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