Market leaders Bitcoin and Ethereum used the October catalyst quite effectively and the rally could pick up speed in November. After the highest monthly close ever, buyers are focusing on the coming months with strong momentum. PlanB’s Stock-to-Flow (S2F) model is targeting $98,000 by the end of November. Let’s start with market-wide data, technical analysis of SHIB, DOGE, ETH, BTC and 6 altcoins will be our next stops.
What happened in the Bitcoin (BTC) and altcoin market?
Bitcoin (BTC) and Ethereum (ETH) posted their highest monthly close ever, pointing to strong momentum supporting buyers. BTC has closed 2 monthly red candles since 2013, only in November of 2018 and 2019. Another impetus for the biggest cryptocurrency could be headwinds from US stock markets, which set an enviable record in November. The S&P 500 posted a median increase of 2% in November, the only month of the year to have such impressive median returns.
Meanwhile, Glassnode data shows that Bitcoin reserves on exchanges are at the lowest level in three years. The amount of BTC held in exchange wallets decreased from 3.1 million Bitcoins to 2.47 million BTC in April 2020. According to most crypto analysts, this could be bullish for Bitcoin if demand increases because it will create a supply shock. So, can Ethereum covet some more of Bitcoin’s dominance? Let’s examine the technical analysis of analyst Rakesh Upadhyay to find out…
Bitcoin (BTC) technical analysis
Bitcoin (BTC) bounced back from the resistance line of the flag formation on Oct. 31, but the bulls did not drop the price below the 20-day EMA ($59,876). This is a positive sign as it shows traders buying on dips. A break and close above the resistance line will complete the setup of the bullish pennant and BTC could then target the ATH level of $67,000. This level is likely to act as a major roadblock but if the bulls can overcome it, BTC could begin its journey towards the formation target of $89,476.12. On the technical side, the rising MAs and RSI in the positive zone indicate that the bulls have the upper hand. The first sign of weakness will come with a break and close below the 20-day EMA. Such a move could result in a drop in the support line of the formation. Selling could accelerate if the bears keep the price below the flag. The next level for BTC will be the 50-day SMA at $53,115.
BTC and ETH bulls await critical levels
The long wick dated November 1 on the Ethereum chart shows that the bulls are greedily buying on the dips. The bulls are not allowing the price to drop and continue below the 20-day EMA ($4,042) since October 1, which indicates that the sentiment is positive. If ETH bulls can push the price above the overhead resistance at $4,460.47, the uptrend could continue. Ethereum could then rally to the psychologically important $5,000 level, which is likely to pose a tough challenge to the bears. Contrary to this assumption, if the price breaks through the overhead resistance, the bears will try to pull the price towards the 20-day EMA. This is an important boost to watch out for because a break below this could prompt short-term traders to book profits.
Binance Coin (BNB) price predictions
BNB bears have been trying to push the price below $518.90 for the past two days, but the long wick candles of the day show that the bulls have other plans. Lower levels are attracting strong buying and the bulls will now try to continue the uptrend. On the technical side, the rising 20-day EMA ($486) and the RSI just below the overbought zone suggest that the bulls dominate. If the bulls hold the price above $540.50, BNB price could hit the $554 formation target and then move towards the psychological resistance at $600. Conversely, if the price declines and dips below the 20-day EMA, it will indicate aggressive selling at higher levels. This could trap a few aggressive bulls and drag BNB price towards the critical support at $392.20.
Cardano (ADA) will target these levels in BTC rise
ADA bulls have successfully defended the $1.87 support for the past few days, but the struggle continues to push the price above the 20-day EMA ($2.07). This indicates a lack of demand at higher levels. The bears will now try to push the price below the support zone between $1.87 and $1.80. If that happens, ADA could drop to $1.58. On the technical side, the bearish MAs 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 rises above the MA line, it will indicate a strong accumulation at $1.87. ADA could then rise to the overhead resistance at $2.47.
Solana (SOL) consolidates above $218
Solana (SOL) rebounded from the 20-day EMA on Oct. 31 and signaled strong buy at lower levels. The bulls will now try to push the price from $216 to $218.93. If successful, SOL price could continue the uptrend and rise to the pattern target at $239.83. A break and close above this resistance could open the doors for a possible rally to $265.80. On the technical side, the ascending 20-day EMA ($185) and the RSI in the positive zone indicate that the bulls have prevailed. This positive view will be rejected if the price breaks down from overhead resistance and dips below the 20-day EMA. In this case, the price may pull back to the trend line.
Ripple (XRP) technical analysis
XRP price is stuck between the trend line and the $1 support, while ripple bears sell on rallies and bulls accumulate on dips. The bulls tried to push the price above the downtrend line on Oct. 31, but long wick candles indicate selling at higher levels. The bears are trying to push the price below the MA line as of November 1. If this happens, XRP could fall back to the strong support at $1. This is an important level to consider because a break below it could push the price towards $0.85. If the bulls price rises above the downtrend line, XRP bulls will target the overhead resistance level of $1.24. The flat MAs and the RSI near the midpoint indicate indecision between the bulls and bears.
Polkadot (DOT) price predictions
Polkadot (DOT) jumped at $41.93 on Oct. 31, as seen from the long wick of the day. This is a positive sign as it shows traders piling up on the dips. Buyer pressure on November 1 propelled the price above the overhead resistance at $46.39. The bulls tried to break through the next overhead hurdle at the ATH level of $49.78, but the bears are not willing to give up. If the price declines from the current level or overhead resistance and finds support at $46.30, there will be increased pressure towards the pattern target at $53.90. The first sign of weakness will be a close below $46.39 and the DOT could then slide back to the 20-day EMA.
Shiba Inu (SHIB) price predictions
SHIB price shows the bulls aggressively buying the drop to the 50% Fibonacci retracement level at $0.00005778, as seen from the long wick candles from October 31. Buyers will now try to push the price above the ATH level of $0.000008854. This level can be expected to attract strong selling by the bears. If the price breaks down from overhead resistance, SHIB could trade between $0.00008854 and $0.00005778 for a few days. A break and close above $0.000008854 will mark the resumption of an uptrend that could reach the 300% Fibonacci extension level at $0.0010349. Conversely, if the price dips and closes below $0.00005778, the bears could push the price towards $0.00048.
Dogecoin (DOGE) technical analysis
Dogecoin, whose analysis we share as , received an upside reaction from $0.25 on October 31, but the bulls are struggling to keep the price above $0.27. This shows that the bears are selling in the rallies. On the technical side, the 20-day EMA ($0.25) is rising and the RSI is just above the midpoint, indicating a minor advantage for buyers. If the price stays above $0.27, DOGE could rally to $0.30 and later to $0.35. This positive view will be invalidated in the short term if the bears pull the price below the 20-day EMA. According to the analyst, DOGE could drop by 0.23 later. If this support is breached, the downward move could extend to $0.19.
Terra (LUNA) technical analysis
Terra protocol’s LUNA token is trading between the resistance line of the symmetrical triangle and $41.65, which is a positive sign. This indicates that traders are buying on dips that coincide with the 20-day EMA. Buyers have to push and sustain the price above the triangle to restart the uptrend. According to the analyst, the LUNA price may rise to $49.54 first and if it is exceeded, it can reach the formation target of $62.59. If the bears pull the price below the 20-day EMA, the initial target on the downside is located at $38.89. LUNA can then slide to the support line of the triangle. A break and close below this support will indicate that the bears have defeated the bulls. According to the analyst, LUNA could drop to $33 and $22.40 later on.