As Bitcoin (BTC) continues to rally to a new 2020 high, surpassing $ 16,700, traders are pondering if this is the start of a new bull market.
Mike McGlone, chief commodity strategist at Bloomberg Intelligence, believes the main obstacle is a record high of nearly $ 20,000. Once this is overcome, Bitcoin’s market value could reach $ 1 trillion. McGillon expects the uptrend to continue in 2021 with more analysts in his perspective.
Veteran trader Peter Brandt also believes that looking at past bullish moves, Bitcoin is in the early stages of the next bullish cycle.
In another upbeat outlook, Citibank managing director Tom Fitzpatrick believes bitcoin could rise to $ 318,000 by December 2021. Fitzpatrick arrived at this prediction by examining previous Bitcoin bull markets.
Each bullish phase is accompanied by significant corrections on its way up, giving traders the opportunity to sell when prices rise and buy again during declines. However, in order to do this, traders must limit the time of their trades, otherwise they may skip a step.
Let’s analyze the top 10 cryptocurrencies to determine which bearish or bullish setup might predict the next possible move.
Bitcoin / US dollar
In a strong uptrend, corrections usually last no more than three days. This can be seen in the Bitcoin rally that started in early October. The bulls pushed the price above the high resistance of $ 16,500 and resumed the bullish move.
Now BTC / USD may rise to the next important resistance at $ 17,200. Here the bulls may have to overcome a strong sell-off because once buyers overcome this resistance, there will be no major hurdles to the all-time high.
The rising moving averages and RSI are in the overbought zone, indicating that the bulls are in control. There is no negative formation on the chart, warning of a possible high at the current stage.
However, traders must be careful not to come to power. They may keep a close eye on the 20-day exponential moving average ($ 15,032) because a break below it would be the first sign of weakness.
ETH / USD
ETH faced selling pressure on the rising wedge resistance line. This line approached the upper resistance at $ 488.134. As such, bears are likely to build solid defenses at this level.
If the price reverses down from higher resistance and the bulls do not give up the big position, it will increase the likelihood of a breakout of $ 488.134. Above this level, the ETH / USD pair could rise to $ 520 and then to $ 550.
Bullish moving averages and RSI above 61 indicate bullish advantage. This bullish view would be rejected if price reverses down from current levels or higher resistance and falls below the 20-day moving average ($ 435).
XRP / US Dollar
XRP broke and closed above the $ 0.26 resistance on Nov 13. Although the bears were selling on the November 14 and 15 rallies, they failed to bring the price back below the $ 0.26 breakout level.
XRP / USD daily chart. Source: TradingView
This indicates that sentiment has turned positive and bulls are building up during recessions. The 20-day moving average ($ 0.256) turned higher and the RSI reached the overbought zone, indicating that the path of least resistance was up.
The first upside target is $ 0.303746, and if this level rises higher, the XRP / USD pair could retest the $ 0.326113 resistance. This uptrend could be reversed if the pair reverses downward and falls below the $ 0.26 support.
Link / USD
LINK Chainlink is currently trying to bounce off its 20-day moving average ($ 12). Now the bulls will again try to push the price above the upper resistance at $ 13.28. If they succeed, the alt coin will complete the reverse head and shoulders pattern.
The target for this upward setup is $ 19.2731. Gradually rising moving averages and the RSI just above the average indicate a slight bullish advantage over the bulls.
Contrary to this assumption, if the price reverses down from current levels or higher resistance and falls below the 20-day moving average, the LINK / USD pair could fall to the 50-day simple moving average ($ 11). A break below $ 9.7665 would nullify the bullish sentiment.
BCH / USD
Bitcoin Cash (BCH) switched again from the upper resistance zone of $ 272 to $ 280 on November 15. This indicates that the bears are firmly defending this level. If the bears can push the price below the immediate support at $ 242, it could drop to $ 231.