The cryptocurrency market has had a strong rally in recent days, and this has pushed Bitcoin (BTC) towards the second best day in history. Almost every trader now seems to focus on the magic number of $ 20,000 per bitcoin.
Following this sharp bullish move, some traders are calling for the top, while others are looking forward to high targets for the future.
For example, Brian Kelly, host of CNBC’s fast money service, believes that the recent volatility of altcoin, excessive bitcoin price increases and high funding rates pointing to the rise of retailers may be a warning sign in the short to medium term.
At the other end of the spectrum, analysts like Brian Estes, chief investment officer of Off the Chain Capital, believe that Bitcoin could grow to $ 100,000 a year, or even better to $ 288,000 by the end of 2021.
Another optimistic view awaited Gold Bullion International co-founder Dan Tabiro, who saw bitcoin grow to “$ 300,000 to $ 500,000” over the next five years.
During a bull cycle, it is far too easy to lean on a rash. Actions performed by greed can ruin a trading account, especially if traders are using excessive influence in an unstable market. Therefore, traders must follow their own trading strategies and reduce the risk.
Are there any forces left after the vertical gatherings in the last few days, or is it time for a correction? Let’s analyze the 10 best digital currencies to find out.
Bitcoin / US dollars
Bitcoin (BTC) broke the $ 19,000 barrier on November 24 and is trying to climb to the $ 20,000 mark. The formation of the Doji candlestick pattern today indicates that bulls are reluctant to buy aggressively at today’s level.
On the plus side, the bulls did not allow the price to correct even on the 20-day exponential moving average ($ 17,095) when the trend began on October 8. …
Due to continued purchases, the Relative Strength Index (RSI) has remained in the overbought zone since October 21. The Bears can try to stop the rally to the $ 20,000 level, but if they do not push the price below the 20-day EMA. The bulls remain in control.
If the BTC / USD pair rises above $ 20,000 without a significant correction, it can continue its vertical movement before a sharp turn. In a market with strong bullish momentum, it is ruthless to set a peak.
A hectic buy usually signals high, but before a reversal occurs, it also provides the best periods to make money for the prudent trader.
Consequently, traders can take partial profits in the face of strong resistance and defend their remaining positions with a consistent stop loss to protect the paper surplus.
ETH / USD
Ether (ETH) is facing gains near the stiff upper resistance of $ 625. However, a shallow correction shows that the bulls do not close their positions quickly. Over the next few days, the bulls may again try to push the price above $ 625.
If successful, the ETH / USD pair could start heading for the next major resistance at $ 800. Bullish moving averages and RSI in the overbought zone indicate that the bulls are in control.
However, if the ETH / USD reverses from overhead resistance, the Bears could bring the pair down to 38.2% Fibonacci retracement level of $ 526,348, and a deeper correction could extend the decline to 50% retracement level of $ 496,552 …
XRP / US Dollar
XRP rose to an intraday high of $ 0.780574 on November 24 from a low of $ 0.227813 on November 3, up 242% in a short period. Such vertical accumulations are not stable. The long week on the candlestick on November 24 shows profits at higher levels.
An RSI above 91 indicates that the markets are overheating in the short term and need to calm down. However, the long tail of the candlestick today shows that bulls continue to buy at lower levels in anticipation of further gains.
If the XRP / USD pair rises above $ 0.780574, the trend may enter a peak and reach $ 0.96. However, if the price falls from the upper resistance level, the pair may remain in a certain range for several days.
BCH / USD
Bitcoin Cash (BCH) gathered strongly on November 23-24 and broke through the resistance of $ 353, but the bulls failed to keep the higher levels. The long week on the candlestick on November 24 shows profits at higher levels.
Today, the bulls have brought the price back above $ 353, but it is difficult for them to keep the higher levels. This can start a correction to the 38.2% Fibonacci retracement level of $ 324.13 and then to the 50% retracement level.