Bitcoin (BTC) and Ether (ETH) had their highest monthly close in October, indicating strong momentum favoring buyers. The focus now shifts to November, which has been largely bullish for Bitcoin.
Since 2013, Bitcoin has closed November in the red only twice, in 2018 and 2019. Another positive boost for Bitcoin could be the tailwinds of the US stock markets, which also have an enviable record in November.
The S&P 500 has registeredbrought an average increase of 2% in November, the only month of the year that has achieved such impressive average returns.
Data from Glassnode also shows that Bitcoin reserves on exchanges are at their lowest level in three years. The amount of Bitcoin kept on the exchange records has been reduced from 3.1 million Bitcoin in April 2020 to 2.47 million BTC. According to analysts, this could be bullish for Bitcoin if demand skyrockets because that could create a supply shock.
Could Ether Take Altcoins Higher or Will Bitcoin Remain in the Driver’s Seat? Let’s take a look at the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin fell below the resistance line of the flag pattern on October 31, but the bulls did not allow the price to stay below the 20-day exponential moving average (EMA) ($ 59,876). This is a positive sign as it shows that traders are buying on dips.
A breakout and close above the resistance line will complete the bullish flag setup. The BTC / USDT pair could rise to the all-time high of $ 67,000. This level is likely to act as a major hurdle, but if the bulls can get past it, the pair could begin its journey towards the target at $ 89,476.12.
The rising moving averages and the RSI in the positive zone indicate that the bulls have the upper hand. The first sign of weakness will be a breakout and a close below the 20-day EMA. Such a move could result in a lowering of the pattern’s support line.
The sell could accelerate if the bears keep the price below the flag. The pair could then drop to the 50-day Simple Moving Average (SMA) ($ 53,115).
ETH / USDT
The long tail on the Ether candle on Nov. 1 shows that the bulls are buying dips vigorously. The bulls have not allowed the price to fall and stay below the 20-day EMA ($ 4,042) since Oct 1, suggesting that sentiment remains positive.
If the bulls push the price above the overhead resistance at $ 4,460.47, the ETH / USDT pair could resume the uptrend. Later, the pair could rally to the psychologically important level at $ 5,000 where the bears are likely to pose a tough challenge.
Contrary to this assumption, if the price turns down from the upper resistance, the bears will try to carry the pair to the 20-day EMA. This is an important support to watch out for because a break below it could lead short-term traders to book profits.
BNB / USDT
The bears tried to push Binance Coin (BNB) below $ 518.90 for the past two days, but the long tail of the candle shows that the bulls had other plans.. Lower levels are attracting strong buying and the bulls will now attempt to resume the uptrend.
The rising 20-day EMA (486) and the RSI just below the overbought zone suggest that the bulls are in command. If the bulls sustain the price above $ 540.50, the BNB / USDT pair could move towards the target of the pattern at $ 554 and then to psychological resistance at $ 600.
Conversely, if the price turns down and breaks below the 20-day EMA, it will suggest aggressive selling at higher levels. That can catch several aggressive bulls, taking the pair to critical support at $ 392.20.
ADA / USDT
The bulls have successfully defended the strong support at $ 1.87 for the past few days, but are struggling to push Cardano (ADA) above the 20-day EMA ($ 2.07). This indicates a lack of demand at higher levels.
The bears will now attempt to sink the price below the support zone at $ 1.87 to $ 1.80. If that happens, the ADA / USDT pair could drop to $ 1.58. The descending moving averages and the RSI in the negative zone indicate that the bears are in control.
Contrary to this assumption, if the price rises from the current level and breaks above the moving averages, it will indicate a strong build at $ 1.87. Then the pair could climb to the overhead resistance at $ 2.47.
SOL / USDT
Solana (SOL) bounced from the 20-day EMA on October 31, indicating a strong buying at lower levels. The bulls will now attempt to push the price above the overhead resistance zone at $ 216 to $ 218.93.
If successful, the SOL / USDT pair could resume its uptrend and climb to the target of the pattern at $ 239.83. A breakout and close above this resistance could open the doors for a possible rally to $ 265.80.
The rising 20-day EMA ($ 185) and the RSI in the positive zone indicate that the bulls have the upper hand. This positive view will be reversed if the price turns down from the overhead resistance and plummets below the 20-day EMA. That could drive the price to the trend line.
XRP / USDT
Ripple (XRP) is stuck between the downtrend line and the $ 1 support as the bears are selling on rallies and the bulls buying on dips. The bulls tried to push the price above the downtrend line on October 31, but the long wick on the candle shows selling higher.
The bears are trying to sink the price below the moving averages as of November 1. If that happens, the XRP / USDT pair could fall back to the strong support at $ 1. This is an important level to watch out for because a break below it can push the price to $ 0.85.
If the bulls carry the price above the downtrend line, the pair could rise to resistance above $ 1.24. The flat moving averages and the RSI near the midpoint do not give a clear advantage to either the bulls or the bears.
DOT / USDT
Polkadot (DOT) bounced off the 20-day EMA ($ 41.93) on October 31 as seen from the long tail on the day’s candle. This is a positive sign as it shows that traders are accumulating on dips.
Sustained buying on Nov. 1 has pushed the price above the overhead resistance at $ 46.39. The bulls tried to overcome the next hurdle at the all-time high of $ 49.78, but the bears are unwilling to budge.
If the price turns down from the current level or above resistance and finds support at $ 46.30, it will improve the prospects for resumption of the bullish move towards the pattern’s target at $ 53.90.
The first sign of weakness will be a close below $ 46.39. The pair could then fall to the 20-day EMA.
SHIB / USDT
The long tail of SHIBA INU (SHIB) on the October 31 candle suggests that the bulls aggressively bought the dip to the 50% Fibonacci retracement level at $ 0.00005778.
Buyers will now try to push the price towards the all-time high of $ 0.00008854. This level is likely to attract strong selling from the bears. If the price turns down from the overhead resistance, the SHIB / USDT pair could trade between $ 0.00008854 and $ 0.00005778 for a few days.
A breakout and close above $ 0.00008854 could signal the resumption of the uptrend that may reach the 300% Fibonacci extension level at $ 0.00010349. Conversely, a breakout and close below $ 0.00005778 can push the price down to the 20-day EMA ($ 0.000048).
DOGE / USDT
Dogecoin (DOGE) bounced off the 20-day EMA ($ 0.25) on October 31, but the bulls are struggling to hold the price above $ 0.27. This suggests that the bears are selling in rallies.
The 20-day EMA ($ 0.25) is sloping up and the RSI is just above the midpoint, indicating a small advantage for buyers. If the price sustains above $ 0.27, the DOGE / USDT pair can rally to $ 0.30 and then $ 0.35.
This positive view will be invalidated in the short term if the bears lower the price below the 20-day EMA. The pair could then decline to the 50-day Simple Moving Average (SMA) ($ 0.23). If this support breaks, the move to the downside could extend to $ 0.19.
MOON / USDT
The LUNA token of the Terra protocol has been trading between the resistance line of the symmetrical triangle and the 20-day EMA ($ 41.65), which is a positive sign. This suggests that traders are buying dips to the 20-day EMA.
Buyers will have to push and hold the price above the triangle to indicate the possible resumption of the uptrend. The LUNA / USDT pair could rise to $ 49.54 first, and if this hurdle is crossed, the uptrend may extend to the pattern’s target at $ 62.59.
If the bears pull the price below the 20-day EMA, the pair could slide to the 50-day SMA ($ 38.89) and then to the triangle support line. A breakout and close below this support will indicate that the bears have dominated the bulls. The pair can then drop to $ 33 and close to $ 22.40.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.
Market data is provided by the HitBTC exchange.
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