The price of bitcoin is consolidating near $35,000. Will altcoins take advantage of the sideways price action and go higher?
bitcoin (btc)’s marginal rise of around 1.5% last week suggests traders are cautious at higher levels but not rushing out. The bears have been in hibernation for the past few days, but if the rally does not resume, the sellers may try to make a comeback.
However, in an uptrend, dips are often seen as an opportunity for long-term investors to accumulate. The positive sentiment among traders can be gauged by the increase in bitcoin withdrawals from exchanges that reached 61,000 bitcoin, a sharp improvement from the year-to-date low of nearly 43,000 bitcoin, according to CryptoSlate analyst Van Straten .
Much of the accumulation is taking place in bitcoin in hopes that the United States Securities and Exchange Commission will eventually approve a spot bitcoin exchange-traded fund. Trader enthusiasm was further boosted by news that the Hong Kong government could consider proposals for a spot bitcoin ETF. BitMEX co-founder Arthur Hayes said on X (formerly Twitter) that competition between the United States and China is good for bitcoin.
Are bitcoin and altcoins ready to extend their upward movement or is it time for a short-term correction? Let’s analyze the graphs to find out.
S&P 500 Index Price Analysis
The S&P 500 Index (SPX) has been on the rise over the past few days. The bulls pushed the price above the 20-day exponential moving average (4275) on November 2 and followed it to a break above the 50-day simple moving average (4346) on November 3.
The Relative Strength Index (RSI) has risen into positive territory and the 20-day EMA has started to appear. This indicates that the downtrend may have ended but does not guarantee the start of a new uptrend. The bears are expected to fiercely defend the downtrend line.
Likewise, buyers are unlikely to give up their advantage without a fight. They are likely to buy the dips to the 20-day EMA. A strong rebound from this level will increase the possibility of a break above the downtrend line. If the bears want to take advantage, they will have to lower the price below the 20-day EMA.
US Dollar Index Price Analysis
The US Dollar Index (DXY) fell below the moving averages on November 3, signaling the beginning of a deeper correction.
The first support on the downside is the 38.2% Fibonacci retracement level at 104.38. If the price bounces off this level, the index could reach the 20-day EMA. Buyers will have to break this resistance to establish a retest of 107.35.
Contrary to this assumption, if the price continues to decline and breaks below 104.38, it will indicate that the bulls are rushing towards the exit. That could open the doors for a further decline to the 50% retracement level of 103.46.
bitcoin price analysis
bitcoin has been gradually rising within the ascending channel pattern. This suggests that the bulls have the upper hand, but momentum is slowing.
The RSI remains within the overbought territory, indicating that the btc/USDT pair may extend its consolidation or enter a corrective phase in the coming days. If the price falls below the channel, it may tempt short-term traders to book profits. There is strong support at the 20-day EMA ($33,238), but if this level gives way, the pair may fall to $31,000.
On the contrary, if the price rises and breaks above the channel, it will suggest the beginning of the next leg of the uptrend. The pair may then shoot up to the next major hurdle at $40,000.
Ether Price Analysis
Ether (eth) broke through the nearby resistance of $1,885 on November 5, signaling the start of the next leg of the upward journey towards $2,000.
The bears are expected to defend the zone between $2000 and $2200 with all their might because if this resistance gives way, it will clear the way for a possible rally to $3500 as there are no major resistances in between.
This bullish view will be invalidated in the short term if the price turns down from the current level and falls below the 20-day EMA ($1,780). The eth/USDT pair could fall towards the 50-day SMA ($1,671).
BNB Price Analysis
BNB (BNB) broke and closed above the $235 range resistance on November 4, indicating that demand exceeds supply.
There is minor resistance at $250, but if buyers break through, the BNB/USDT pair may reach the main hurdle at $265. This level may prove to be formidable resistance for the bulls to cross.
On the downside, the first major support to pay attention to is the $235 level. If the price falls below this level, it will indicate that the bears remain active at higher levels. Then, the pair may slide towards the 20-day EMA ($227).
XRP Price Analysis
XRP (XRP) broke through the stiff overhead resistance of $0.67 on November 6, indicating that the bulls are in the driver’s seat.
There is minor resistance at $0.74, but if the bulls overcome this hurdle, the XRP/USDT pair could rise to $0.85 and subsequently $1.
A risk to the current bullish move is that the RSI has entered overbought territory. This suggests that the rally is overheating in the near term. That could result in a correction or consolidation for a few days. The important level to watch on the downside is $0.67. If this level gives way, it could start a deeper correction towards the 20-day EMA ($0.58).
Solana Price Analysis
Solana (SOL) bounced off the crucial support of $38.79 on November 3, but the bulls are struggling to hold the higher levels.
The bears will try to press their advantage and push the price below $38.79. If they manage to do that, the SOL/USDT pair could fall to the 20-day EMA ($34.67). This level is likely to witness a tough battle between bulls and bears.
If the price bounces off the 20-day EMA, the bulls will again try to push the price above $42.50 and challenge the tough resistance at $48. On the contrary, if the 20-day EMA breaks, the pair may fall to $31 and then to $27.12.
Related: Why has XRP price risen today?
Cardano Price Analysis
Cardano (ADA) has seen a strong recovery over the past few days. The momentum accelerated further after buyers pushed the price above $0.30.
The strong rally has pushed the RSI into the overbought zone, suggesting that a small consolidation or correction may be around the corner. If the price stays above $0.32, the probability of a rally to $0.38 will increase.
On the contrary, if the price turns down from the current level and falls below $0.32, it will suggest that traders may be making profits. That could push the price down to the 20-day EMA ($0.30). This remains the key level that the bulls must defend to keep the bullish movement intact.
Dogecoin Price Analysis
Dogecoin (DOGE) bounced off the strong support of the 20-day EMA ($0.07) on February 3, indicating a shift in sentiment from selling on rallies to buying on dips.
The bulls are trying to keep the price above $0.07 and if they succeed, the DOGE/USDT pair could gain momentum and rise to $0.08. This level can pose a big challenge, but if it is broken, the pair can run towards the psychological level of $0.10.
Meanwhile, the bears likely have other plans. They will try to stop the bullish movement and get the price back below the 20-day EMA. This could clear the way for a possible drop to the $0.06 support.
Toncoin Price Analysis
Toncoin (TON) has been trading above the moving averages for the past few days, indicating that demand is at higher levels.
The bulls pushed the price above $2.31 on November 6, but the long wick shows selling at higher levels. If buyers hold the price above $2.31, it will open the door to a rise to $2.59. The bears are expected to mount a strong defense at this level.
Alternatively, if the price turns down from the current level, the moving averages are likely to act as the first line of support. If they give way, the TON/USDT pair could fall to the strong support at $1.89. Such a move will suggest that the pair may fluctuate between $1.89 and $2.31 for some time.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
