Bitcoin’s (BTC) surge above $35,000 on November 2 may have attracted aggressive bulls speculating that the next leg up is about to begin. However, the price quickly reversed course and fell back below $35,000, suggesting that the breakout may have been a fakeout.
Moderate corrections during an uptrend do not indicate a change in trend. This is usually a sign of health as it gets rid of weakness. When the market is trending higher, dips are seen as buying opportunities, but it’s better to wait for prices to bottom before buying. Strong support levels may be seen as potential locations for buyers to step in to arrest the decline.
MicroStrategy founder and executive chairman Michael Saylor told CNBC that current levels are “a pretty ideal entry point into the asset” if traders hold on to a 12-month to 48-month time frame.
Bitcoin’s weakness has pulled down the prices of several altcoins. What are the important support levels where the decline could end?
Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin surged above $35,280 on November 1 and attempted to continue its rise on November 2, but the bears had other plans. The seller has capped the price increase at $35,985 and is trying to keep the price under $35,000.
If they do, the BTC/USDT pair could slip to $33,390. This is an important defensive level for bulls, as a break above $33,390 could push the pair down to the 20-day exponential moving average ($32,611).
Generally speaking, in an uptrend, bulls will vigorously defend the 20-day moving average. If this level remains unchanged, it means the trend remains positive. The bulls will then try again to push the price to $40,000.
A breakout and close below the 20-day EMA would be the first sign that bulls may be losing control. The pair may then drop to $31,000.
Ethereum price analysis
Bulls pushed Ethereum (ETH) above immediate resistance at $1,865 on November 2, but bears pulled the price back below this level, signaling a strong sell-off at higher levels.
The bears will try to sink the price towards the strong support at $1,746. This remains a key level to watch as a breakout and close below it would signal that the bears are back in control.
Meanwhile, bulls may have other plans. They will try to buy the dip and once again try to overcome the $1,865 hurdle. If they can succeed, the ETH/USDT pair could begin a rally towards the psychologically key $2,000 level.
BNB price analysis
BNB (BNB) rebounded from the $223 breakout on November 1, indicating that bulls are fiercely defending this level.
On November 2, buyers attempted to push the price above the $235 resistance, but bears held their ground. This suggests that the BNB/USDT pair has been hovering between $223 and $235 for some time.
A rising 20-day EMA ($223) and the RSI in positive territory suggest the path of least resistance is to the upside. If the bulls push the price above $235, the pair may rise towards $250 and eventually $265. On the contrary, the trend will turn in favor of the bears if they decline and sustain the price below $223.
Ripple Price Analysis
XRP (XRP) faces resistance near $0.61, but a positive sign is that the bulls are not losing ground to the bears.
Buyers will try to push the price towards the overhead resistance at $0.67. This level could once again pose a strong challenge to buyers, but if they break all the way, the rally could extend to $0.75 and then $0.85. The rising 20-day EMA ($0.56) and the RSI in overbought territory suggest that bulls are in control.
If the bears want to stage a comeback, they will have to pull the price back below $0.56. Subsequently, the XRP/USDT pair is likely to drop towards the 50-day moving average ($0.52).
Solana Price Analysis
Solana (SOL) climbed above $38.79 on November 1 and was approaching the $48 target, but the long shadow on the candlestick that day suggested traders were actively taking profits at this level.
On November 2, the price rebounded from $38.79, but the bulls failed to sustain the intraday highs, indicating a sell-off on every bounce. The bears will try to take advantage and push the SOL/USDT pair below $38.79.
If successful, it could start a move downward towards the 20-day EMA ($32.41). A correction of this depth would signal the end of the recent uptrend. The pair may then enter a consolidation phase that lasts several days.
If bulls want to maintain their advantage, they must hold the support at $38.79. If the price rises strongly from this level, the pair may retest the overhead resistance at $48.
Cardano Price Analysis
Cardano (ADA) rebounded from the 20-day EMA ($0.28) on November 1 to rise above $0.30, indicating that bulls viewed dips as a buying opportunity.
The price started falling from $0.33 on November 2, but the bulls did not give way to the bears. This is a positive sign as it shows that bulls are holding on to their positions as they expect the uptrend to continue. The upside target is $0.38.
Contrary to this assumption, if the price declines and falls below $0.30, it would indicate that the market has rejected higher levels. The ADA/USDT pair may then drop to the 20-day EMA ($0.28).
Dogecoin Price Analysis
Dogecoin (DOGE) rebounded from the 20-day EMA ($0.06) on November 1, but bulls were unable to sustain higher levels.
Prices returned to the 20-day EMA on November 3, but the long tail on the candlestick suggests that bulls are fiercely defending this level. Buyers are once again trying to push the price above $0.07. If successful, the DOGE/USDT pair will attempt to rebound to $0.08. This level may once again witness strong selling from the bears.
On the contrary, if the price falls from $0.07 again, it means that the bears are selling on the rally. A breakout and close below the 20-day EMA would signal re-entry by the bears. The pair may then drop to $0.06.
related: Bitcoin Disappoints, Markets Pro Gains 88% in 29 Hours
Coin price analysis
Toncoin (TON) rose to overhead resistance at $2.31 on November 2, but bulls were unable to overcome the hurdle. This shows that the bears are vigorously defending this level.
The upward sloping moving averages and the RSI in positive territory show a slight advantage for the bulls. A strong bounce away from the moving averages would improve prospects for a rebound above $2.31. If this level is reached, the TON/USDT pair may start heading towards $2.59.
On the contrary, if the price declines from the overhead resistance and breaks below the moving averages, it means that the pair may fluctuate between $1.89 and $2.31 for a few days.
Chainlink Price Analysis
Chainlink (LINK) has been facing resistance near $11.50, showing that bears have not given up yet and are continuing to sell on the highs.
Failure to maintain higher levels may tempt short-term traders to take profits on November 2nd. This pulled the price back to the 20-day EMA ($10.11). This remains a key downside level to be wary of.
If the rebound from the 20-day moving average continues, it would indicate strong demand at lower levels. The bulls will then make another attempt to move above $11.50. If they succeed, the LINK/USDT pair could surge to $13.50 and later to $15. Conversely, a break below the 20-day EMA could lead to a retest of $9.50.
Polygon Price Analysis
Polygon (MATIC) has been gradually rising, but the gains are lacking momentum. This shows that bulls are hesitant to continue buying at higher levels.
Rising moving averages and the RSI approaching overbought territory suggest bulls have the upper hand. If the bulls break the $0.70 overhead barrier, the MATIC/USDT pair is likely to rebound to $0.74 and then to $0.80.
The bears currently pose a strong challenge near the overhead resistance at $0.70, but they will have to push the price below the 20-day EMA ($0.61) to erode the bullish momentum. The pair is likely to oscillate within a broad range between $0.50 and $0.70 for some 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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