Bitcoin (BTC) broke above the overhead resistance of $38,000 on November 24, indicating positive market sentiment and continued pressure from bulls. Adrian Przelozny, CEO of Independent Reserve, told Cointelegraph that “the next two years are going to be good,” with market activity likely to pick up in early 2024.
The main catalysts for next year are the Bitcoin halving in April and applications for spot Bitcoin exchange-traded funds, some of which have decision deadlines in January. With two major events on the horizon, Bitcoin is likely to find buyers on the dip.
Analysts expect a short-term retracement from $40,000. This may be one of the reasons why Cathie Wood’s investment company ARK Invest is gradually selling off. The company sold approximately 700,000 Grayscale Bitcoin Trust (GBTC) shares in the past month, but it is worth noting that ARK still holds more than 4.3 million GBTC shares.
Can Cryptocurrency Traders Break Above the Overhead Resistance Levels for Bitcoin and Major Altcoins? What levels of importance need to be noted?
Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin broke above strong resistance at $37,980 on November 24, but bulls are struggling to maintain the breakout. This shows that the bears are actively guarding this level.
Both moving averages are sloping upwards and the relative strength index (RSI) is above 61, indicating the path of least resistance is to the upside. If buyers sustain the price above $37,980, the BTC/USDT pair may reach $40,000.
This level may once again witness a fierce battle between bulls and bears, but if the buyers prevail, the pair could surge towards $48,000. Time is running out for the bears. If they want to weaken the momentum, they will have to push the price below the 20-day moving average. Below $34,800 the short-term trend will turn negative.
Ethereum price analysis
On November 22, bulls pushed Ethereum (ETH) above the resistance line, signaling the beginning of the next phase of the uptrend.
On November 23, the bears tried to pull the price back below the resistance line, but the bulls held their ground. This shows that the bulls are trying to convert the resistance line into support. If they are successful, the ETH/USDT pair could begin its march towards $2,200.
This level could once again act as strong resistance, but if the bulls overcome it, the pair will complete a large ascending triangle pattern. This could open the door to a potential rally towards the $3,400 target.
This bullish view will be invalidated in the short term if the price declines and breaks below the important support level of $1,900.
BNB price analysis
BNB (BNB) jumped above $235 on November 22, but bulls were unable to overcome the hurdle at the 20-day EMA ($239). This shows that the bears are trying to take control.
The 20-day EMA has started heading lower and the RSI is just below the midpoint, showing bears have a slight advantage. The short-term trend will turn negative after the breakout, with a close below the key support at $223. This could clear the way for a drop to $203.
If bulls want to arrest the decline, they will have to push the price higher and sustain it above the 20-day EMA. The BNB/USDT pair may then spend more time within a large range between $223 and $265.
Ripple Price Analysis
Bulls are trying to push XRP (XRP) above the 20-day EMA ($0.62), indicating strong buying at lower levels.
The 20-day moving average has flattened, and the RSI is close to the midpoint, indicating that there will be a range-bound trend in the short term. The XRP/USDT pair is likely to fluctuate between $0.56 and $0.74 for a few days.
If the price rises and sustains above the 20-day EMA, the pair may gradually climb towards $0.67 and then $0.74. Buyers must overcome this hurdle to signal the start of a new rally.
Conversely, if the price declines from current levels and falls below $0.56, it will signal the start of a sharp correction to $0.46.
Solana Price Analysis
Solana (SOL) has been trying to break above the $59 resistance over the past two days, but the bears have held their ground. A small positive in favor of the bulls is that they are not giving ground to the bears.
The rising 20-day EMA ($52.80) and the RSI in positive territory suggest that bulls have the upper hand. This strengthens the prospects of a rebound above the overhead resistance. If this happens, the SOL/USDT pair could rise to $68.
Contrary to this assumption, if the price declines from current levels, bears will try to pull the pair below the 20-day EMA. If they succeed, the pair could drop to $48 and buyers could step in.
Cardano Price Analysis
Cardano (ADA) has been trading around the $0.38 level over the past few days. This indicates uncertainty between bulls and bears about where to go next.
The upward sloping moving averages and the RSI in positive territory show a slight advantage for the bulls. If the price rises above $0.40, it will mark the beginning of a new leg higher to $0.42 and subsequently to $0.46.
If the bears want to trap the aggressive bulls, they will have to pull the price below $0.34. This could lead to a drop to the 50-day moving average ($0.31). The ADA/USDT pair is likely to fluctuate between $0.24 and $0.38 for some time.
Dogecoin Price Analysis
Dogecoin (DOGE) has remained above the 20-day moving average ($0.08) for the past two days, but has lacked momentum. This shows that bulls are cautious at higher levels.
Buyers would have to push the price above $0.08 to send a strong signal. The DOGE/USDT pair may then surge towards the $0.10 target. This level may once again witness a tough battle between bulls and bears.
If the price pulls back from $0.08, it would indicate that bears remain active at higher levels. The pair may then fall towards immediate support at $0.07. The flat 20-day EMA and the RSI just above the midpoint do not give bulls or bears a clear advantage.
related: “Enjoy Bitcoin for less than $40,000” – PlanB emphasizes that the average BTC price will reach $100,000 from 2024
Coin price analysis
Buyers are trying to push Toncoin (TON) towards the overhead resistance at $2.59. Repeatedly retesting a resistance level tends to weaken it.
If the bulls push and sustain the price above the $2.59 to $2.77 resistance zone, it will complete the cup-and-handle pattern. This could start a new uptrend to $3.28 and then to the pattern target of $4.03.
Alternatively, if the TON/USDT pair falls from the overhead resistance, it would indicate that the bears are fiercely protecting this level. This could lead to a drop to the 50-day moving average ($2.20). A move below this level would open the door to a drop to $2 and subsequently to $1.89.
Chainlink Price Analysis
Chainlink (LINK) is facing a sell-off from the downtrend line, as can be seen from the long shadow on the November 23 candlestick.
However, the bulls did not give up and pushed the price towards the downtrend line again. The price is trapped between the descending trendline and the 61.8% Fibonacci retracement level at $12.83. This resulted in a squeeze, which is likely to be resolved by large moves on both sides.
If the price surges above the downtrend line, the LINK/USDT pair could climb to $16.60 and then to $18.30. Conversely, if the price declines and breaks below $12.83, the decline could extend to the 50-day moving average ($11.21).
Avalanche Price Analysis
Avalanche (AVAX) has reached overhead resistance at $22, an important level to watch. Bears are expected to defend this level vigorously.
However, if the bulls do not retrace too much from current levels, the likelihood of a breakout above $22 will increase. The pair may then climb towards $25, where bears may mount a strong defense.
On the downside, the 20-day EMA ($18.40) remains a key level to watch. If the price declines and falls below this level, it would signal the start of a further correction towards $16. This move would suggest that the AVAX/USDT pair is likely to stay within the broad range between $10.50 and $22 for a longer period of time.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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