Investing in Web 1.0, 2.0, 3.0 and 4.0: Price Analysis

The S&P 500 Index (SPX) rose 2.24% last week, marking its third consecutive weekly gain. In comparison, Bitcoin (BTC) saw a more modest increase of 0.8%, indicating a period of consolidation below $38,000. This is seen as a positive sign for risky assets, as the U.S. Dollar Index has started to decline.

Cryptocurrency investors have held onto their Bitcoin, even after its 125% rally in 2023, suggesting a long-term bullish outlook. William Clemente, co-founder of Reflexivity, posted a chart sourced from Glassnode to X (formerly Twitter), which showed that 70% of Bitcoin in circulation has not been sold or transferred in the past year.

Investors have also increased exposure to global cryptocurrency exchange-traded products (ETPs) in 2023, according to a report by the digital asset platform Fineqia, seen by Cointelegraph. Fineqia reported that crypto ETP assets under management rose by 91% from Jan. 1 to Oct. 31, 2023.

Given the current resistance level, will Bitcoin start a deeper correction if it fails to break above? Will altcoins follow suit, or could they buck the trend? To answer these questions, let’s analyze the charts.

S&P 500 Index price analysis

The S&P 500 Index surged above the downtrend line on Nov. 14, suggesting that the corrective phase has ended. This was further substantiated by the bullish crossover of the moving averages, and the RSI entering the overbought territory.

A minor resistance exists in the 4,512–4,541 zone, which may cause a temporary pullback. On the downside, the 20-day EMA (4,395) is likely to act as a strong support. If the price rebounds off this level, it will indicate a positive trend, potentially leading to a rally to 4,650.

Conversely, if the 20-day EMA gives way, the index may drop to the 50-day SMA (4,340). To indicate strength, sellers will have to push the price below this support.

U.S. Dollar Index price analysis

The U.S. Dollar Index reversed its course from the 20-day EMA (105) on Nov. 14 and dropped below the descending channel pattern.

That started a correction, which has reached the 50% Fibonacci retracement level of 103.46. The 20-day EMA has begun to turn down, and the RSI is close to the oversold zone, indicating that the bears are in control.

If the 103.46 level is breached, the drop could extend to the 61.8% Fibonacci retracement level of 102.55. Buyers are likely to strongly defend the area between 103.46 and 102.55. The first signal of strength will be a break and close above the 20-day EMA.

Bitcoin price analysis

After finding support at the 20-day EMA ($35,925), Bitcoin has been gradually increasing towards the important resistance at $38,000. This level was defended by the bears twice in the past, so they will likely attempt to do the same again.

If the price declines sharply from the resistance above and breaks below the 20-day EMA, it could spark a sell-off among short-term traders, leading to a correction in the BTC/USDT pair that could reach as low as $34,000 and then $32,400.

Conversely, if the bulls succeed in pushing the price above the $38,000 resistance, it will signal the beginning of the next leg of the uptrend. The pair could then rise to $40,000, which is likely to act as a major resistance. The rising moving averages and the RSI in the positive territory suggest that the path of least resistance is to the upside.

Ether price analysis

Ether (ETH) has been forming a large ascending triangle pattern, which will be finalized when it breaks and closes above $2,200. This bullish setup has a target objective of $3,400.

The bulls are buying the dips to the 20-day EMA ($1,949), signifying that lower levels are still attracting buyers. If the price stays above the psychological level of $2,000, the ETH/USDT pair could attempt a rally to $2,090 and then to $2,200.

Alternatively, if the price turns down and falls below the 20-day EMA, it will suggest that the bears are attempting a comeback in the near term. The pair may then drop to the 50-day SMA ($1,779).

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BNB price analysis

The bulls have been able to keep BNB (BNB) above the 20-day EMA ($242) for the past few days, implying that sentiment is still bullish and traders are buying the dips.

The bulls will next try to drive the price above $258 and retest the formidable resistance at $265. If this level is surpassed and the price closes higher, it will complete a rounding bottom pattern. The BNB/USDT pair could then move to $305, as there are no major resistance levels in between.

On the other hand, if the price turns downwards and breaks the 20-day EMA, it would suggest that the bulls are losing strength. The pair could drop to the immediate support at $235. This level is expected to act as a strong support, however, if it is breached, the correction could extend to the 50-day SMA ($227).

XRP price analysis

XRP (XRP) saw a dip below the 20-day EMA ($0.62) on Nov. 16, but buyers have prevented the price from dropping to the next support at $0.56.

The XRP/USDT pair is stuck between $0.74 and $0.56. If buyers manage to push and keep the price above the 20-day EMA, it could indicate the beginning of a relief rally. The pair may then surge to $0.67 and later to $0.74. The price action inside the range is likely to remain unpredictable and volatile.

A break above $0.74 or a collapse below $0.56 could start a trending move. If the price can sustain above $0.74, the pair may jump to $0.85. On the other hand, a slump below $0.56 could sink the pair to $0.46.

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Solana price analysis

At the current levels, buyers are having difficulty sustaining the Solana SOL (SOL) above $59, which shows that the bears remain active.

The bulls have not given up much ground, indicating that the buyers are not in a hurry to sell their positions, as they expect the uptrend to continue. A break and close above $68.20 could pave the way for a rally to $77.

However, if the price turns down and falls below the 20-day EMA ($51.39), the SOL/USDT pair could drop to the critical support at $48, thus invalidating the bullish outlook in the near term.

Cardano price analysis

Near the $0.38 level, ADA (ADA) of Cardano has experienced a tough combat between bulls and bears.

The increasing moving averages and RSI in the overbought zone suggest that the bulls are in the lead. If the price remains over the $0.38–$0.40 resistance zone, the ADA/USDT pair could possibly reach $0.46.

To obstruct the upside, bulls must quickly move the price below the 20-day EMA ($0.35). If it happens, some short-term bulls may take profits, and the pair might drop to the 50-day SMA ($0.30).

Dogecoin price analysis

Dogecoin (DOGE) has been slowly climbing in the past few days. The bulls managed to push the price above $0.08 on Nov. 17, but the breakout could not be maintained.

The price dropped on Nov. 18 and reached $0.08. A positive sign is that the bulls are attempting to defend the $0.08 level. If they succeed, it will show that $0.08 has become a support level. This will improve the chances of the uptrend resuming. The DOGE/USDT pair could then hit $0.10.

The RSI is displaying signs of forming a bearish divergence, which indicates that the momentum may be slowing down. Sellers will need to pull and keep the price below the 20-day EMA ($0.07) to take control.

Chainlink price analysis

On Nov. 17 and 18, sellers attempted to push Chainlink’s LINK (LINK) below the 20-day EMA ($13.64), but the long tail on the candlestick indicates strong buying at lower levels.

There is a minor resistance at $15.40, and if this level is surpassed, the LINK/USDT pair could retest the local high at $16.60. It is anticipated that sellers will put up a strong resistance at this level, however, if the bulls do not give up too much ground, it will increase the likelihood of a break above $16.60.

On the other hand, if the price turns down from $15.40, it will suggest that bears are selling at higher levels. The trend will shift in favor of the bears if they can sink and maintain the price below the 61.8% Fibonacci retracement level of $12.83.