Bitcoin (BTC) experienced a brief surge above $35,000 on November 2, leading many aggressive bulls to believe that the next upward move was starting. However, the price quickly turned around and fell back below $35,000, suggesting that the breakout may have been a fake move. While this may be seen as a bearish signal, a mild correction during an uptrend is generally considered healthy as it shakes out weak hands and provides a buying opportunity for those waiting on the sidelines.
According to MicroStrategy founder and executive chairman Michael Saylor, traders with a long-term time horizon of 12 to 48 months may see the current price level as a “pretty ideal entry point” into Bitcoin. Saylor believes that the long-term potential of the asset outweighs short-term volatility.
Bitcoin’s weakness has also affected the prices of several altcoins, causing them to move lower. It is important to identify key support levels where the decline could potentially end. Let’s analyze the charts of the top 10 cryptocurrencies to determine these levels.
For Bitcoin, if the price sustains below $35,000, the BTC/USDT pair may slide to $33,390, a level that the bulls need to defend. A break below $33,390 could lead to a further decline towards the 20-day exponential moving average ($32,611). However, if the bulls manage to hold the 20-day EMA, it would indicate that the uptrend remains intact and they may attempt another move towards $40,000. On the other hand, a break and close below the 20-day EMA would suggest weakening bullish momentum and could result in a drop to $31,000.
Moving on to Ether (ETH), the bulls attempted to push the price above the immediate resistance at $1,865 but were unsuccessful, indicating strong selling pressure at higher levels. The bears will now try to push the price down to the strong support level at $1,746. If this support is broken, it would signal a shift in favor of the bears. However, if the bulls manage to overcome the resistance at $1,865, the ETH/USDT pair could start a rally towards the psychologically critical level of $2,000.
In the case of BNB, the bulls have fiercely defended the breakout level of $223, indicating their strength. The rising 20-day EMA and the positive RSI suggest that the path of least resistance for BNB/USDT is to the upside. If the bulls manage to push the price above $235, the pair could jump to $250 and eventually to $265. On the downside, a sustained break below $223 would shift the trend in favor of the bears.
XRP is currently facing resistance near $0.61, but the bulls have not lost ground to the bears. They are likely to attempt to drive the price to the overhead resistance at $0.67, followed by a potential rally towards $0.75 and $0.85. The upsloping 20-day EMA and the overbought RSI suggest that the bulls are in control. However, a break below $0.56 would give the bears an advantage and could lead to a drop to the 50-day SMA ($0.52).
Solana (SOL) reached near its target objective at $48 but faced aggressive selling at that level, resulting in a pullback. The bears will now try to sink the SOL/USDT pair below $38.79, which could start a downward move towards the 20-day EMA. If the bulls manage to defend the $38.79 support, the pair may retest the overhead resistance at $48.
Cardano (ADA) has been viewed by the bulls as a buying opportunity, as evidenced by its rebound from the 20-day EMA. The bulls are currently targeting $0.38 on the upside. However, a break below $0.30 would indicate rejection of higher levels and could result in a drop to the 20-day EMA.
Dogecoin (DOGE) rebounded off the 20-day EMA but faces resistance near $0.07. A successful breakthrough at this level could lead to a rally towards $0.08, while a turn down from $0.07 would signal selling pressure by bears. A break and close below the 20-day EMA would indicate a bearish shift and could result in a drop to $0.06.
Toncoin (TON) faced strong resistance at $2.31, suggesting bearish defense at that level. However, the upsloping moving averages and positive RSI indicate a slight edge for the bulls. A strong rebound off the moving averages could pave the way for a rally above $2.31, with a potential target of $2.59. On the downside, a break below the moving averages would suggest a sideways movement between $1.89 and $2.31.
Finally, Chainlink (LINK) has encountered resistance near $11.50, with bears continuing to sell on rallies. The key level to watch is the 20-day EMA, as a rebound from this level would indicate strong demand and could lead to another attempt to break above $11.50. On the other hand, a slide below the 20-day EMA could result in a retest of $9.50.
In summary, Bitcoin’s brief surge above $35,000 was followed by a sharp decline, indicating a potential fake breakout. However, mild corrections during uptrends are generally viewed as healthy and provide buying opportunities for those waiting for a better entry point. The overall trend for Bitcoin and several altcoins remains positive, but it is important to monitor key support levels for signs of a trend change.