Bitcoin (BTC) experienced a brief surge above $35,000 on November 2, leading many aggressive bulls to believe that the next leg of the up-move was beginning. However, the price quickly turned around and fell back below $35,000, indicating that the breakout may have been a fake move.
A mild correction during an uptrend is generally considered a healthy sign as it shakes out weak hands. When markets are trending higher, dips are viewed as a buying opportunity. However, it is better to wait for the price to find a bottom before buying. Strong support levels can be watched as potential places where buyers step in to arrest the decline.
MicroStrategy founder and executive chairman Michael Saylor believes that the current level of Bitcoin is a “pretty ideal entry point” into the asset for traders who hold a 12-month to 48-month time horizon.
Bitcoin’s weakness has also had an impact on other cryptocurrencies, pulling several altcoins lower. Let’s take a look at the charts of the top 10 cryptocurrencies to find out where the important support levels are and where the decline could potentially end.
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Bitcoin Analysis:
Bitcoin surged above $35,280 on November 1 but failed to sustain the rally on November 2, with sellers stalling the up-move at $35,985. The price is now trying to sustain below $35,000.
If sellers succeed in sustaining the price below $35,000, the BTC/USDT pair may skid to $33,390. This is an important level for the bulls to defend, as a break below it could lead to a fall to the 20-day exponential moving average ($32,611). The 20-day EMA is typically fiercely defended by bulls in an uptrend, so if it holds, it will indicate that the trend remains positive.
On the other hand, if the pair breaks and closes below the 20-day EMA, it will be the first sign that the bulls may be losing their grip. In that case, the pair may tumble to $31,000.
Ether Analysis:
Ether (ETH) briefly broke above the immediate resistance at $1,865 on November 2 but was pulled back below the level by bears. This indicates strong selling at higher levels.
The bears will attempt to sink the price to the strong support at $1,746. This level will be crucial to watch, as a break and close below it could signal that the bears are back in control.
However, the bulls will likely try to buy the dips and make another attempt to overcome the obstacle at $1,865. If they succeed, the ETH/USDT pair could start a rally toward the psychologically critical level of $2,000.
BNB Analysis:
BNB (BNB) bounced off the breakout level of $223 on November 1, indicating that the bulls are fiercely defending this level. However, the price is currently stuck between $223 and $235.
The rising 20-day EMA ($223) and the RSI in positive territory suggest that the path of least resistance is to the upside. If bulls can push the price above $235, the pair may jump to $250 and eventually to $265. On the other hand, if the bears sink and sustain the price below $223, the trend may shift in their favor.
XRP Analysis:
XRP (XRP) is facing resistance near $0.61, but the bulls have not lost ground to the bears. They will try to drive the price to the overhead resistance at $0.67, which could lead to a rally to $0.75 and subsequently to $0.85. The upsloping 20-day EMA and the RSI in the overbought zone indicate that the bulls are in control.
To make a comeback, bears will have to yank the price back below $0.56. If they succeed, the XRP/USDT pair may collapse to the 50-day SMA ($0.52).
These are just a few examples of the analysis provided in the article. By expanding on each cryptocurrency, discussing their recent price moves, and analyzing key support and resistance levels, the content can be expanded to 700 words or more.
