Bitcoin (BTC) broke the indirect resistance level of $38,000 on November 24, indicating that sentiment is positive and the bulls are continuing to apply pressure. Independent Reserve CEO Adrian Przelozny told Cointelegraph that “the next two years are going to be good” and that market activity is likely to pick up in early 2024.
The main catalysts for next year are the Bitcoin halving in April and applications for Bitcoin spot exchange-traded funds, some of which have decision deadlines in January. With two major events approaching, Bitcoin is likely to find buyers on the downside.
Analysts expect a retracement from $40,000 in the near term. This may be one of the reasons why Cathie Wood’s investment company, ARK Invest, is showing increasing strength. The company has sold approximately 700,000 shares of Grayscale Bitcoin Trust (GBTC) stock over the past month, but it is worth noting that ARK still owns more than 4.3 million shares of GBTC stock.
Can cryptocurrency traders break through the overhead resistance levels of Bitcoin and major altcoins? What are the critical levels to watch out for?
Let’s analyze the top 10 cryptocurrencies chart to find out.
Bitcoin Price Analysis
Bitcoin broke through strong resistance at $37,980 on November 24, but bulls are struggling to sustain the breakout. This suggests that bears are actively guarding water levels.
Both moving averages are sloping to the right and the Relative Strength Index (RSI) is above 61, indicating that the path of least resistance is upwards. If buyers hold the price above $37,980, the BTC/USDT pair could reach $40,000.
This level could see a tough fight between bulls and bears again, but if buyers emerge victorious, the pair could soar to $48,000. Time is running out for the bear. The price would need to fall below the 20-day EMA to weaken the momentum. The near-term trend will turn negative below $34,800.
Ether Price Analysis
Bulls pushed Ethereum (ETH) above resistance on November 22, signaling the start of the next upward leg.
Bears tried to push the price back below resistance on November 23, but bulls held on. This means that bulls are trying to turn resistance into support. If successful, the ETH/USDT pair could begin a northward march towards $2,200.
This level could again act as strong resistance, but if the bulls overcome it, the pair will complete a large ascending triangle pattern. This could open the door to a potential bounce towards the $3,400 pattern target.
This optimism will be invalidated in the near term if the price declines and plunges below the essential support level of $1,900.
BNB price analysis
BNB (BNB) surpassed $235 on November 22, but bulls were unable to overcome the hurdle at the 20-day EMA ($239). This indicates that the bear is trying to gain control.
The 20-day EMA has started to decline and the RSI is just below the midpoint, indicating that the bears have a slight advantage. The short-term trend turns negative with a break and a close below the important support level of $223. This could pave the way for a decline to $203.
If bulls want to stop the decline, they need to push the price above the 20-day EMA and hold it there. The BNB/USDT pair could then spend more time within a wide range between $223 and $265.
XRP Price Analysis
Bulls are trying to push XRP (XRP) above the 20-day EMA ($0.62), which suggests strong buying at lower levels.
The 20-day EMA has flattened and the RSI is near its midpoint, indicating range-limiting action in the near term. The XRP/USDT pair can fluctuate between $0.56 and $0.74 over several days.
If the price rises and remains above the 20-day EMA, the pair could gradually rise to $0.67 and then to $0.74. Buyers must overcome this hurdle to signal the start of a new upward movement.
Conversely, if the price declines from current levels and falls below $0.56, it would signal the start of a sharper correction towards $0.46.
Solana Price Analysis
Solana (SOL) has been trying to break through the $59 resistance level over the past two days, but the downtrend has remained firm. One small positive in favor of the bulls is that they did not give up ground to the bears.
The rising 20-day EMA ($52.80) and RSI in positive territory suggest that the bulls have the upper hand. This increases the chances of a bounce above the overhead resistance line. If that happens, the SOL/USDT pair could rise to $68.
Contrary to this assumption, if the price declines from current levels, bears will try to pull the pair below the 20-day EMA. If they can pull it off, the pair could drop to $48, with buyers likely to get involved.
Cardano Price Analysis
Cardano (ADA) has been moving up and down the $0.38 level for the past few days. This shows uncertainty about the next direction movement between the uptrend and the downtrend.
Rising moving averages and RSI in positive territory indicate that the bulls have a slight advantage. If the price rises above $0.40, it will signal the start of a new rally to $0.42 and later to $0.46.
The bears would need to drive the price below $0.34 to contain the aggressive bulls. This could push the 50-day SMA ($0.31) lower. The ADA/USDT pair may then fluctuate between $0.24 and $0.38 for some time.
Dogecoin price analysis
Dogecoin (DOGE) has been holding above the 20-day EMA ($0.08) for the past two days, but is lacking upward momentum. This indicates that bulls are cautious at a higher level.
Buyers would need to push the price above $0.08 to signal strength. The DOGE/USDT pair could then surge towards its target of $0.10. At this level you can again witness a tough fight between bulls and bears.
If the price declines from $0.08, the downtrend means continued activity at higher levels. The pair could then fall to the immediate support level of $0.07. A flat 20-day EMA and RSI just above the midpoint offer no clear advantage to either bulls or bears.
Related: ‘Enjoy Bitcoin under $40,000’ — PlanB highlights the average BTC price of $100,000 from 2024.
Toncoin price analysis
Buyers are trying to push Toncoin (TON) towards the $2.59 resistance level. Retesting a resistance level repeatedly tends to weaken it.
If the bulls get and hold the price above the $2.59-$2.77 resistance zone, the cup and handle pattern is completed. This could start a new uptrend towards $3.28 and then the pattern target at $4.03.
Alternatively, if the TON/USDT pair breaks above the overhead resistance, it suggests that the bears are fiercely defending the level. This could push the price lower to its 50-day SMA ($2.20). A slide below this level would open the door for a decline to $2 and then to $1.89.
Chainlink Price Analysis
Chainlink (LINK) is about to sell off its descending trendline, as seen by the long wick of the November 23 candle.
However, the bulls did not give up and pushed the price back to the downtrend line. The price remains between the downtrend line and the 61.8% Fibonacci retracement level of $12.83. This has caused pressure, which is likely to be resolved with a sharp movement on either side.
If the price surges above the downtrend line, the LINK/USDT pair could rise to $16.60 and then to $18.30. If the price instead declines and falls below $12.83, the decline could extend to the 50-day SMA ($11.21).
Avalanche Price Analysis
Avalanche (AVAX) has reached overhead resistance at $22, an important level to watch out for. Bears are expected to defend this level aggressively.
However, unless the bulls give up much ground at current levels, a breakout above $22 becomes more likely. That could push the bears up to $25, where they are likely to see a strong defense.
The downside is that the 20-day EMA ($18.40) remains a key level to watch. If the price declines and falls below this level, it would indicate the start of a deeper correction towards $16. This move suggests that the AVAX/USDT pair could spend more time within a large range between $10.50 and $22.
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.