Bitcoin (BTC) started the week on a negative note. With the bulls unable to break through and hold the $38,000 resistance level, there is a small opportunity for the bears to bounce back. Strong selling drove the price below $37,000 on November 27.
However, lower levels are likely to attract buyers as the bulls will want to maintain momentum into the final months of the year. Bears are likely to have other plans as they attempt to deepen the correction. Volatility may increase during the last few days of November as both bulls and bears attempt to close out the month.
With near-term uncertainty still remaining, Robert Kiyosaki, author of Rich Dad, Poor Dad, reiterated his long-term bullish views on Bitcoin, gold, and silver in an X (formerly Twitter) post on November 26. He warned investors to move away from fiat currencies. This is called a “fake money system.”
Will Bitcoin and altcoins bounce from their respective strong support levels, or will the bears win? Let’s analyze the chart to find out.
S&P 500 Index Price Analysis
The S&P 500 Index (SPX) continued its upward trend after surging above a 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, indicating a minor correction or sideways move is possible in the near term. The 20-day exponential moving average (4,448) is an important level to watch out for in case of decline.
If the price rises from this level, it means that sentiment is still bullish and traders see the pullback as a buying opportunity. This increases the chances of a break above 4,650.
Conversely, a drop below the 20-day EMA indicates that the uptrend is losing strength. The index could then fall towards the 50-day simple moving average (4,346).
US Dollar Index Price Analysis
The US Dollar Index (DXY) attempted to recover from the 50% Fibonacci retracement level of 103.46 on November 21, but the downtrend was in no mood to ease.
Sellers are trying to drive the price down to 102.55, which is the 61.8% Fibonacci retracement level after halting the relief rally at 104.21 on November 22. The bearish 20-day EMA (104.54) and RSI near the oversold zone indicate that the bears are leading.
The first sign of strength would be a breakout and close above the 20-day EMA. This movement means that the correction is over. The index could then attempt a rebound towards the firm resistance of 106.
Bitcoin Price Analysis
Bitcoin’s price action over the past few days has been forming an ascending triangle pattern, which is completing at the break and closing above $38,000.
Rising moving averages and RSI in positive territory indicate that the path of least resistance is to the upside. An extension of the $38,000 resistance could push the BTC/USDT pair up to $40,000. This level could again act as a hurdle, but if resolved, it could lead to a rise towards the pattern target of $41,160.
Bears would need to pull the price below the uptrend line to invalidate the bullish setup. This could open the door for a decline to $34,800. A bounce from this level would suggest range-limiting action between $34,800 and $38,000. Bears gain the upper hand on the break and close below $34,800.
Ether Price Analysis
Ethereum (ETH) surged near the $2,137 resistance level on November 24, but bulls were unable to overcome this barrier. This can lead to profit booking, as seen by the long wicks of the day’s candlesticks.
Bears are trying to pull the price below the 20-day EMA ($1,998). If successful, the ETH/USDT pair could fall to $1,904. A break below this support line completes the double top pattern. This reversal setup could initiate a deeper correction to the 50-day SMA ($1,834).
Instead, if the price recovers from the 20-day EMA, lower levels will continue to attract buyers. The pair could then rise to the resistance level between $2,137 and $2,200. Buyers need to move up this area to complete a large ascending triangle pattern.
BNB price analysis
The rejection by BNB (BNB) at the 20-day EMA ($237) on November 23 indicates that the bears are trying to move towards a resistance level.
The bears maintained selling pressure and pushed the price below the 50-day SMA ($229). The BNB/USDT pair next finds solid support at $223, below which it could fall to $219. Buyers are likely to defend this area aggressively.
On the positive side, the bulls would need to keep the price above $240 to suggest that selling pressure is easing. This could trigger a rebound towards $255 and later the key resistance at $265.
XRP Price Analysis
XRP (XRP) bounced off its 50-day SMA ($0.58) on November 22, but hit a wall at the 20-day EMA ($0.61). This suggests that the bears are trying to turn the 20-day EMA into resistance.
Sellers will push the price below the 50-day SMA and challenge the vital support at $0.56. If this level is violated, the bear will be back in command. The XRP/USDT pair may gradually collapse towards $0.46.
Conversely, if the price rises from the current level of $0.56 and rises above the 20-day EMA, it would indicate that the pair may continue to oscillate within a large range between $0.56 and $0.74.
Solana Price Analysis
Solana (SOL) rejected immediate resistance at $59 on November 26, indicating that bears are trying to halt the relief rally at this level.
Bears will try to further strengthen their positions by pushing the price below the 20-day EMA ($53). The SOL/USDT pair will complete a head-and-shoulders pattern if it breaks below the $51 neckline. This could initiate a steep correction to the 50-day SMA ($40) and thereafter to the pattern target of $34.
The bulls likely have other plans. They will try to stem the decline near $51. A bounce from this level above $59 would indicate that the bulls are back in the driver’s seat. The pair could then retest the local high of $68.
Related: Amid Record Hash Rate, BTC Price Could Hit $40,000 — 5 Things to Know in Bitcoin This Week
Cardano Price Analysis
Cardano (ADA) has failed to break the $0.40 overhead resistance in the past three days. This may have tempted short-term traders to book profits.
The ADA/USDT pair may fall towards the 20-day EMA ($0.37), which is likely to attract buyers. If the price bounces actively from this level, it would be a sign that the trend is still positive and traders are buying on the dip. The bulls will then make one more attempt to overcome the $0.40 hurdle. If successful, the pair could soar to $0.46.
Conversely, if the 20-day EMA is broken, the pair could fall to $0.34. A breakdown of this level could push the pair towards its 50-day SMA ($0.32), so buyers are expected to hold on to this level.
Dogecoin price analysis
Bears tried to push Dogecoin (DOGE) below the 20-day EMA ($0.08) on November 26, but bulls bought the dip, as seen in the long tail of the candlestick.
Bulls pushed the price above the $0.08 resistance level on November 27, but the long wick of the candlestick indicates solid selling at higher levels. If the price falls below the 20-day EMA, the DOGE/USDT pair may fall towards the 50-day SMA ($0.07).
Conversely, if the price bounces back from the 20-day EMA, it would suggest lower levels of demand. The bulls will then try to hold the price above $0.08 again. If that happens, the pair could gain momentum and surge towards $0.10.
Chainlink Price Analysis
Chainlink (LINK) broke the downtrend line on November 26th, but the bulls were unable to maintain momentum. This may have prompted selling, pushing the price below the November 27 downtrend line.
The 20-day EMA ($14) remains a key support level to watch in the near term. If the price falls and remains below the 20-day EMA, it means the bears are attempting a bounce. The LINK/USDT pair could then fall to $12.83, which is the 61.8% Fibonacci retracement level.
On the other hand, if the price bounces off the 20-day EMA, it means that sentiment is still positive and traders are buying on the dip. This would increase the chances of a bounce against the indirect resistance at $16.60.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.