5 Cryptocurrencies to Watch This Week
Bitcoin and a few altcoins have seen aggressive purchases at lower levels. This may cause their last highs to be retested.As the Bitcoin price hits 2020’s highs, the open position in CME Bitcoin (BTC) futures has risen to $ 1.16 billion, making it the world’s largest Bitcoin futures market, according to Arcane Research. This shows that institutional investors have remained relatively indifferent to the recent sharp correction in the bitcoin price.
Guggenheim Partners has become the newest and largest Wall Street institution planning to invest in Bitcoin.In a petition to the Securities and Exchange Commission (SEC), Guggenheim asked permission to invest up to 10% of the Macro Opportunity Fund’s net asset value through the Grayscale Bitcoin Trust. The fund currently has $ 5.3 billion in assets. Therefore, the Guggenheim can buy $ 500 million or more of Bitcoin.
The increase in institutional investor appetite continues even when it is near Bitcoin’s all-time high. This shows that investors are confident in the long term story of the digital asset.
Raoul Pal, CEO of Global Macro Investor and Real Vision, said in an interview that Bitcoin’s most conservative target is a $ 150,000 rally by November 2021. If large sums of institutional money continue to flow into the crypto space, Bitcoin could even rise to $ 250,000. .
The long-term foundations of cryptocurrencies continue to evolve, but the price may still drop in the short term and investors are likely to view every drop as a buying opportunity.
Let’s examine the charts of the top five cryptocurrencies to find out what opportunities are available.
In a strong uptrend, the bulls usually buy the bearish for the 20-day exponential moving average. The long tails on the 26 and 27 November candles show that the bulls are aggressively buying Bitcoin (BTC) at lower levels.
The upward moving averages and the relative strength index (RSI) in the positive zone show that the bulls are in control.
However, the bears will try to stop the current bullish move at $ 18,210.77, the 61.8% Fibonacci retracement level of the most recent decline. If the price falls from this resistance, several days of price range action is possible.
Conversely, if the bulls can push the price above $ 18,210.77, the BTC / USD rate could rise to $ 19,459.22 and then the magic number $ 20,000. Breaking this resistance could start the next leg of the uptrend.
If the price falls from the current levels and breaks below $ 16,000, this bullish outlook will be invalidated.
The 4-hour chart shows that the recovery in the lower levels hit a wall near the 50 simple moving average placed just below the 61.8% Fibonacci retracement level at $ 18,210.77.
If the bears can push the price below $ 17,500, there will be a $ 16,400 retest on the cards. If the bulls buy at lower levels again, action may take place depending on the price range of several days.
Conversely, if the bulls can push the price above $ 18,210.77, it is possible to retest $ 19,459.22.
The long tails on the November 26 and 27 candles show that the bulls are aggressively buying Ethereum (ETH) dips at the breakout level of $ 488,134. This development shows that the sentiment remains positive.
The upward moving averages and the RSI in the positive zone show the bulls have the upper hand. However, buyers are unlikely to have an easy way for $ 625. The bears will try to stop the current rally at the 61.8% Fibonacci retracement level of $ 569,019.
If the price breaks through this resistance and breaks the 20-day EMA ($ 512), there will be a $ 482 retest on the cards.
Conversely, if the bulls can push the price above $ 569,019, the ETH / USD rate could rise to $ 592,674 and then to $ 622,807. A break at this level could start the next leg of the uptrend, which could push the pair to $ 800.
The 4-hour chart shows that the bears are defending the 50-SMA. If the price drops from current levels and drops below $ 520, a retest of $ 482 will be done on the cards.
However, if the bulls can push the price above $ 569,019, a rally to $ 592,674 and then $ 622,807 is possible.
Traders can keep an eye on the RSI because if it continues above 60, the bulls will suggest that the commander is back. On the other hand, if the RSI drops from 60, it will show resistance at higher levels and this could result in several days of price range action.
Cardano’s ADA corrected just above the 78.6% Fibonacci retracement level of $ 0.1173063 on November 26 to $ 0.1199845. Usually, such a large drop makes the uptrend less likely to continue.
However, the long tail on the November 26 candlestick and the sharp recovery on November 28 brought the bulls into contention again. The leap shows that the bulls are not aggressively buying lower.
Rising moving averages and the RSI near the overbought zone indicate that the bulls are in command. If the bulls can push the price above $ 0.1826315, the next leg of the uptrend could start at $ 0.2129 and then $ 0.235.
Contrary to this assumption, if the price breaks down from the $ 0.1826315 resistance, the ADA / USD rate may stick to the range for a few days.
The upward-sloping moving averages on the 24-hour chart and the RSI in the positive zone show that the bulls have the upper hand. Buyers will now try to push the price above the $ 0.175 resistance.
If they can, it is possible to retest the $ 0.1826315 level. Conversely, if the price breaks down from the general resistance, the pair can stay tied in the price range for a few days. A break below the moving averages will indicate that the bears are making a comeback.
The correction in Stellar Lumens (XLM) from the last highs of $ 0.231655 on November 25 only lasted one day on November 26. This indicates that the bulls are aggressively buying the dips as they expect the rally to get longer.
The upward moving averages and the RSI in the overbought zone show the bulls are in command.
If the bulls can push the price above $ 0.231655, the next leg of the uptrend could begin. The next level to watch up is $ 0.2933.
However, there are other plans as the bears try to stop the upward movement in the $ 0.22 – $ 0.2316555 resistance zone.
The bulls are trying to defend the 20-EMA. If the price bounces off this support, the bulls will try to push it above the downtrend line. If successful, there could be a retest of the $ 0.231655 level on the cards.
Contrary to this assumption, if the bears pull the price below the 20-EMA, the pair could drop to the 50-SMA. In such a case, the pair could consolidate into a large symmetrical triangle over several days.
If the pair breaks below the $ 0.145 to $ 0.140 support zone, the advantage will shift in favor of the bears.
On November 25, NEM (XEM) price surged and closed above $ 0.1690655, but the long wick on the day’s candlestick showed that the bulls were making a profit higher. This was followed by a sharp decline on November 26.
The bulls, however, bought the decline to the 20-day EMA ($ 0.147) as seen from the long tail on the November 26 candlestick. The bulls pushed the price above the general resistance on November 27th.
The price has remained above $ 0.1690655 for the past two days, but the bulls are facing resistance near $ 0.190. The bears are currently trying to lower the price below $ 0.1690655. If they are successful, a drop to the 20-day EMA will be on the cards.
Conversely, if the bulls can push the price above the resistance zone from $ 0.190 to $ 0.2122, the next leg of the uptrend could start at $ 0.275.
Bulls are currently trying to hedge critical support at $ 0.1690655. If the pair returns from this support, the bulls will try to push the price above the downtrend line. If they succeed, the XEM / USD rate could rise to the $ 0.203 to $ 0.2122 resistance zone.
Contrary to this assumption, a drop to the 50-SMA is possible if the bears pull the price below $ 0.1690655. A break below this level could result in a retest of the $ 0.1428512 support.