The data indicates that the current rally in Bitcoin (BTC) is supported by increased participation by individuals and institutional investors. Open interest in CME bitcoin futures is close to a previous record high, an indication of institutional investor interest in cryptocurrencies. Likewise, Bitcoin spot volume reached its highest level in 52 weeks, according to a study by Arcane.

However, during a strong uptrend, traders tend to be greedy and use excessive influence. Therefore, the great open interest in derivatives could be a double-edged sword, because even a small drop in the value of Bitcoin can force high-yielding traders to close their positions. Such a step could have a chain effect that could lead to long-term liquidation.

While traders should be cautious, don’t panic yet as the current rally in Bitcoin has occurred without euphoria or craziness, especially among retail traders.

Also, some analysts were skeptical of the rally, which is another positive sign. Usually a summit is formed when the last bear in the market becomes bullish and there is no one to buy it.

This does not mean that there will be no corrections along the way. Pull-ups are needed to periodically get rid of weak hands, and this usually prolongs the duration of the trend.

Let’s analyze the top 10 cryptocurrencies to determine whether the trend will continue or whether the correction is just around the corner.

Bitcoin / USD
On November 12th, Bitcoin (BTC) bulls pushed over $ 16,000 peak resistance. This break marks the beginning of the next stage of the uptrend, which could push the price towards critical $ 17,200 resistance.

Rising moving averages and RSI indicators in the overbought zone indicate bulls are in control. If the momentum is able to push the price back above $ 17,200, the bulls have a clear chance of making record highs.

However, traders may be cautious if the pair reverses from the current level and drops below $ 16,000 again. This indicates that market participants have left higher levels.

If the price stays below $ 16,000, the bears will try to push the Bitcoin / USD pair below the 20-day exponential moving average ($ 14,596). Such a move would indicate that the bulls are not buying in downturns as the sentiment has become negative.

It is difficult for bulls to push Ether (ETH) over the rising wedge resistance line. But on the plus side, the bulls did not give up.

The bulls will once again try to push the price over the wedge. If they can, the ETH / USD pair could rise to $ 488,134. Bears can once again attempt to halt the upward move on this resistance. If successful, it might drop to the 20-day moving average ($ 426).

On the contrary, if the bulls are able to push the price above $ 488,134, the next stage of the trend is likely to start. Initial growth target is $ 520, followed by $ 550. The bullish moving averages and the RSI above 67 indicate that the bears are in control.

The first sign of weakness will be a breakout within 20 days of the exponential moving average. This can cause the wedge to fall to the reference line.

XRP has bolstered nearly $ 0.26 of the upper resistance over the past two days. This indicates that the bulls are in no hurry to close their positions, as they expect the price to go out of range.

Moving averages and RSI rising above 59 indicate that the bulls are in control. A breakout and close above $ 0.26 could start the journey towards $ 0.30. Above this level, growth may reach $ 0.326113.

Contrary to this assumption, if the bulls fail again to keep the price above $ 0.26, the bears will try to bring the price back below the moving average. If successful, the XRP / USD pair could drop to $ 0.2295.

Link / USD
On November 11, the bulls failed to push Chainlink (LINK) above $ 13.28 and hold. This indicates that the bears are aggressively defending this resistance. On the plus side, the Bulls have not given up in the past two days.

The bulls are currently trying to push the price above $ 13.28. If successful, LINK / USD will complete the inverted head and shoulders pattern with a target of $ 19.2731.

Both moving averages are sloping and the RSI is higher above 58. This indicates a slight edge for buyers.

Contrary to this assumption, if the pair drops from $ 13.28 again, the bears will try to push the price down to $ 9.7665. Pause during this support will cause a reversal of the bullish trend.

Source: CoinTelegraph