Bitcoin (BTC) surpassed $38,000 on November 24, but bulls were unable to sustain this strength. This means hesitating to buy at higher levels. Bitcoin is set to form a Doji candlestick pattern on the weekly chart for the second week in a row. This indicates indecision about the next direction movement between the uptrend and the downtrend.
With Bitcoin nearing an 18-month high, BitMEX co-founder Arthur Hayes remains bullish. In a post by
Another bullish outlook comes from PlanB, creator of the Stock-to-Flow family of BTC pricing models. He said in a post on X that Bitcoin may not stay at its current levels for long. PlanB expects Bitcoin to maintain an average price of at least $100,000 between 2024 and 2028.
Analysts have become increasingly optimistic over the past few days, but traders need to be cautious because every upward trend comes with a correction.
Could Bitcoin soar above $38,000 or begin a correction phase? Let’s take a look at a chart of the top five cryptocurrencies that could perform well in the short term.
Bitcoin Price Analysis
Bitcoin’s upward march has hit a wall near $37,980, but bulls are in no hurry to close their positions. This shows that traders are expecting the upward trend to progress further.
Immediate support for the downside is the 20-day exponential moving average ($36,546). If the price drops sharply from this support level, every small drop will be a sign that it is being bought. That increases your chances of breaking above $37,980.
If that happens, the BTC/USDT pair could rise to $40,000. This level could be a strong hurdle for the bulls, but if buyers turn the $38,000 level into downward support, the rally could extend to $48,000.
Conversely, if the price plunges below the 20-day EMA, it indicates that the trader is taking profits. The pair could then fall to $34,800.
The bulls are trying to keep the price above the moving average but are having trouble overcoming the $37,980 hurdle. The Relative Strength Index (RSI) is just above the midpoint, indicating that bullish momentum is waning.
If the price falls below the 50 simple moving average, the pair could plummet towards the uptrend line. Bulls are expected to defend this level aggressively. On the positive side, a breakout and close above $38,500 indicates the bulls are in the driver’s seat.
Uniswap price analysis
Uniswap (UNI) fell below the 20-day EMA ($5.44) on November 21, but the low level led to aggressive buying by bulls. It began a sharp rally on November 22nd, which pushed the price to $6.60 on November 24th.
The upward move is facing selling near overhead resistance at $6.70. The UNI/USDT pair has retreated to the 38.2% Fibonacci retracement level of $5.92 and the next stop could be the 50% retracement level of $5.71.
A strong bounce in this area means traders see the downturn as a buying opportunity. This could increase the chances of a break above $6.70. This move would complete a double bottom pattern with a target price of $9.60. The bullish momentum is likely to weaken below the 61.8% Fibonacci retracement level of $5.50.
The bulls were trying to protect the 20-EMA, but the bears had other plans. They pulled the price below the 20-EMA, initiating a deeper correction. If the price stays below the 20-EMA, the pair may fall towards the 50-SMA.
If the price rises from current levels or bounces off the 50-SMA, it would indicate buying at lower levels. The bulls will then try to push the price back up to the resistance level of $6.70. If this resistance is overcome, the pair could soar to $7.80.
Immutable Price Analysis
Immutable (IMX) has been maintaining the $1.30 breakout level for the past few days, suggesting that the bulls have the upper hand.
The price may return to the area between $1.30 and the 20-day EMA ($1.20). A fierce battle between bulls and bears is likely to unfold in this zone, but if buyers win, the IMX/USDT pair could rise to $1.86.
Instead, a short-term trader’s stop may occur as sellers push the price below the support zone. This could accelerate selling and lead to a sharper correction to the psychological level of $1.
The 20-EMA on the 4-hour chart is flat and the RSI is just below the midpoint, indicating a possible near-term consolidation. The first support level on the downside is $1.30. If buyers keep the price above this level, that means $1.30 will act as the new floor.
On the other hand, a break above $1.50 would signal the resumption of the uptrend. The pair could move to $1.59 and then to $1.63. Contrary to this assumption, a decline below $1.20 could favor the bears in the near term.
Related: XRP price bullish flag suggests 20% rise by New Year
VeChain price analysis
Buyers pushed VeChain (VET) above overhead resistance at $0.023 on November 26, but it is struggling to hold higher, as seen by the long wick of the candlestick.
Sellers will try to trap the aggressive bullishness and drive the price down to the 20-day EMA ($0.021). A bounce in price from this level would suggest positive sentiment. The bulls will then try to overcome the hurdle again at $0.023. If successful, the VET/USDT pair could rise as high as $0.027 before attempting to reach the pattern target at $0.031.
Conversely, if bears take the price below the 20-day EMA, this means the pair could remain within a large range between $0.014 and $0.023 for some time.
The pair slipped below the breakout level of $0.023, indicating that the bears have not given up and are selling higher. The pair could reach the 20-EMA, which is the next important level to watch out for.
If the price bounces off the 20-EMA, the bulls will try again to push the price above $0.023 and start the next rally leg towards $0.027. On the other hand, a fall below the 20-EMA could trigger a deeper correction towards $0.020.
Algorand Price Analysis
Algorand (ALGO) reached overhead resistance at $0.14 on November 25th, where bears are expected to show strong defense.
If the uptrend does not deviate significantly from current levels, it means that traders are holding positions in hopes of higher upside. This increases the chances of a bounce above the $0.14-$0.15 resistance zone. When that happens, the ALGO/USDT pair completes a cup and handle pattern. The pattern target for this reversal setup is $0.20.
If bears want to stop the advance, they will need to pull the price below the important support level of $0.12. If this level is broken, the pair could fall to $0.11 and then to $0.09.
Looking at the 4-hour chart, we can see that the currency pair has been fluctuating within the $0.12-$0.15 range for some time. Within a certain range, traders typically buy near support and sell near resistance. It is difficult to predict with certainty the direction of the breakout. Therefore, traders may consider waiting for a breakout before making large bets.
If the price breaks above $0.15, the pair will likely begin its next uptrend. The pair may rise first to $0.18 and then to $0.20. This positive view will be invalidated if the price falls below $0.12.
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.