Bitcoin (BTC) has had a rough start to the week. The bulls failed to break and hold above the $38,000 resistance, providing a small window of opportunity for the bears to attempt a comeback. On November 27, strong selling took the price below $37,000.
However, lower levels may attract buyers as bulls look to maintain momentum in the final month of the year. The bears may have other plans as they will attempt to deepen the correction. This is likely to heighten volatility in the final days of November as both bulls and bears try to close the situation in their favor.
While near-term uncertainty remains, Rich Dad Poor Dad author Robert Kiyosaki reiterated his long-term bullish view on Bitcoin, gold, and silver in a Nov. 26 X (formerly Twitter) post. He warned investors to exit fiat currencies, calling it a “fake currency system.”
Will Bitcoin and altcoins rebound from their respective strong support levels, or will bears prevail? Let’s analyze the chart to find out.
S&P 500 Index Price Analysis
The S&P 500 Index (SPX) continues to head north after surging above its downtrend line. This indicates strong demand at higher levels.
The rally over the past few days has pushed the Relative Strength Index (RSI) into overbought territory, suggesting a minor correction or consolidation is likely in the near term. The 20-day exponential moving average (4,448) is a key level to watch on the downside.
If prices recover from this level, it means market sentiment remains bullish and traders will view dips as buying opportunities. This strengthens the prospects of a break above 4,650 points.
Conversely, a break below the 20-day EMA would signal that bulls are losing control. The index may then drop to the 50-day simple moving average (4,346).
U.S. dollar index price analysis
The U.S. Dollar Index (DXY) is attempting to rebound from the 50% Fibonacci retracement level of November 21 at 103.46, but bears are in no mood to relax.
On November 22, sellers halted the rally at 104.21 and attempted to push the price towards the 61.8% Fibonacci retracement level at 102.55. The downward sloping 20-day EMA (104.54) and the RSI near the oversold zone show that bears are in control.
The first sign of strength will be a breakout and close above the 20-day moving average. Such a move would indicate that the correction may be over. The index may then attempt to rebound towards strong resistance at 106 points.
Bitcoin Price Analysis
Bitcoin’s price action over the past few days is forming an ascending triangle pattern that will complete on a breakout and close above $38,000.
The upward sloping moving averages and the RSI in positive territory show that the path of least resistance is to the upside. If the $38,000 resistance is exceeded, the BTC/USDT pair may climb towards $40,000. This level could once again act as a barrier, but if cleared, the pair could rise towards the pattern target of $41,160.
The bears would have to pull the price below the uptrend line to invalidate the bullish setup. This could open the door for a drop to $34,800. If the price rebounds from this level, it would suggest a range of $34,800 to $38,000. If there is a breakout and close below $34,800, bears will have the upper hand.
Ethereum Price Analysis
Ethereum (ETH) surged close to the upper resistance at $2,137 on November 24, but bulls were unable to overcome this hurdle. This could lead to profit-taking, as seen by the long wicks on the day’s candlestick.
Bears are trying to sink the price below the 20-day EMA ($1,998). If they succeed, the ETH/USDT pair could drop to $1,904. A break below this support would form a double top pattern. This reversal setup could start a deeper correction towards the 50-day moving average ($1,834).
Conversely, if the price rebounds from the 20-day EMA, it would indicate that lower levels continue to attract buyers. The pair may then climb towards the overhead resistance zone between $2,137 and $2,200. Buyers must move up into this area to complete a large ascending triangle shape.
BNB price analysis
BNB (BNB) rejected the 20-day EMA ($237) on November 23, indicating that bears are trying to turn this level into resistance.
Bears maintained the selling pressure and pulled the price below the 50-day moving average ($229). The BNB/USDT pair is likely to slide towards solid support at $223 and drop to $219 next. Buyers are likely to defend the area vigorously.
On the bright side, bulls will have to push and sustain the price above $240 to signal that the selling pressure is easing. This could start a rally towards $255, followed by a move towards the main resistance at $265.
Ripple Price Analysis
XRP (XRP) rebounded from the 50-day EMA ($0.58) on November 22, but found resistance at the 20-day EMA ($0.61). This shows that the bears are trying to turn the 20-day EMA into resistance.
Sellers will try to push the price below the 50-day moving average and challenge the important support at $0.56. A break above this level would signal that bears are back in control. The XRP/USDT currency pair may gradually fall towards $0.46.
On the contrary, if the price rises from current levels or $0.56 and rises above the 20-day EMA, it means that the pair may continue to oscillate in a large range between $0.56 and $0.74.
Solana Price Analysis
Solana (SOL) retreated from immediate resistance at $59 on November 26, indicating that bears are trying to prevent an easing rally at this level.
The bears will attempt to further strengthen their positions by pulling the price below the 20-day EMA ($53). If SOL/USDT breaks below the $51 neckline, a head and shoulders pattern will be completed. This could start a sharp correction towards the 50-day moving average ($40) and then towards the $34 pattern target.
The bulls may have other plans. They will try to contain losses near $51. A rebound from this level above $59 would signal that bulls are back in control. The pair may then retest local highs at $68.
related: Hash rate hits all-time high, Bitcoin approaches $40,000 – 5 things to know about Bitcoin this week
Cardano Price Analysis
Cardano (ADA) has failed to break above the overhead resistance at $0.40 over the past three days. This may entice short-term traders to take profits.
The ADA/USDT pair is likely to slide towards the 20-day EMA ($0.37), which may attract buyers. If the price rebounds strongly from this level, it will indicate that the trend remains positive and traders are buying the dip. The bulls will then try again to overcome the $0.40 barrier. If they succeed, the pair could surge to $0.46.
Conversely, if the 20-day EMA breaks down, the pair could drop to $0.34. Buyers are expected to hold on to this level, as a failure could push the pair towards the 50-day moving average ($0.32).
Dogecoin Price Analysis
On November 26, bears attempted to pull Dogecoin (DOGE) below the 20-day EMA ($0.08), but bulls bought the decline (visible by the long tail on the candlestick).
On November 27, bulls pushed the price above the $0.08 resistance, but the long shadow on the candlestick showed strong selling at higher levels. If the price falls below the 20-day EMA, the DOGE/USDT pair could drop to the 50-day EMA ($0.07).
Conversely, if the price rebounds off the 20-day EMA again, it would indicate that demand is at a lower level. The bulls will then make another attempt to sustain the price above $0.08. If they do, the pair could accelerate and surge towards $0.10.
Chainlink Price Analysis
Chainlink (LINK) broke above the downtrend line on November 26, but bulls were unable to continue the momentum. This may have attracted selling, which pulled the price below the November 27 downtrend line.
The 20-day EMA ($14) remains a key support to watch in the near term. If the price declines and remains below the 20-day EMA, it would indicate that the bears are trying to mount a comeback. Subsequently, the LINK/USDT pair may drop to the 61.8% Fibonacci retracement level at $12.83.
On the other hand, if the price rebounds from the 20-day moving average, it means that market sentiment remains positive and traders are buying dips. This would enhance the prospects of a rebound towards resistance above $16.60.
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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