Professional traders are often considered the smartest because they weigh the risk before investing in an asset class. On the contrary, most traders only monitor potential profits and ignore the risks before investing.
Thus, the increase in the number of bitcoin (BTC) addresses containing more than 100 bitcoins to their highest level in seven months at 16,271 can be viewed as a bullish sign. Additionally, the decline in search volume for the keyword bitcoin indicates that the current rally lacks the hectic retail trade seen during the previous bull market in 2017.
PlanB, the creator of the stock-to-flow model, remains optimistic about Bitcoin and expects the price to rise to at least $ 100,000 by December 2021. If this happens, the market value of Bitcoin will be around $ 2. trillion.
While cryptocurrency analysts have high hopes for Bitcoin, renowned economist and Bitcoin skeptic Nouriel Roubini remains bearish as he expects central bank digital currencies to start a major revolution in about three years. Robbeny then said in a recent interview, “Not only do you not need to program, you don’t even need to grow.”
In other news: US stock markets have garnered positive news that Pfizer is registering successful trials of a COVID-19 vaccine. As the news spread, the prices of gold and bitcoin corrected sharply, but cryptocurrency investors seem to be seeing the fall as a buying opportunity.
Let’s take a look at the best cryptocurrency assets to see how they perform today.
Bitcoin / US dollar
Bitcoin (BTC) is trending upward but is currently facing strong resistance around $ 16,000. Failure to rise above overall resistance could attract profits from short-term traders and sell off aggressive bears.
If the BTC / USD pair falls below $ 15,650, it could drop to the key support of $ 14,000. 20-day exponential moving average ($ 13,935) is located just below this support; Therefore, the bulls are likely to aggressively defend this level.
A strong jump from the 20-day moving average will indicate bulls rallying at lower levels. The price can be fixed from $ 14,000 to $ 16,000 a few days before the start of the next trend.
If the bulls manage to push the price above $ 16,000, it could hit $ 17,200 and then full-time. Conversely, a break below the 20-day EMA could lead to a drop to the 50-day SMA ($ 12,137).
ETH / USD
The bulls are struggling to push the price above the resistance line of the rising wedge pattern. Ether (ETH) formed a candlestick pattern on November 8th and is currently trading in a tight zone. This indicates a swing between bulls and bears.
If bears drop their price below $ 432, the likelihood of falling to the 20-day moving average ($ 409) increases. A break below the wedge guideline will indicate the function of the bears.
However, the 20-day bullish EMA and RSI indicate positive territory in favor of the bulls. If they manage to push the price towards a wedge, the ETH / USD pair could rise to $ 488,134.
Overcoming this resistance could resume the rally with the next target of $ 520, then $ 550.
XRP / US dollar
XRP tried to break out of the reach zone on November 7, but the bears brought the price back. The bulls are currently trying to protect the moving average. If they succeed, this is another attempt to push the price above $ 0.26.
If the price remains above $ 0.26 during the day, the XRP / USD pair could start a new trend with the first target of $ 0.30.
However, flat moving averages and RSI near the midpoint indicate a balance between supply and demand. If the price drops below the moving average, the pair could remain in a specific range of $ 0.26 to $ 0.2295 over the next few days.
A break below the $ 0.2295 support zone to $ 0.219712 would tip in favor of the bears.
BCH / USD
Bitcoin Cash (BCH) has surpassed $ 272 over the past two days, but has failed to hold higher levels. The repeated price rejection shows that the bears are aggressively defending the $ 272-280 resistance zone.
If the price falls below the 20-day moving average ($ 257), Bitcoin Cash / USD could drop to $ 242 and then to $ 231.
However, the bullish moving averages and the RSI are in positive territory, indicating a slight advantage for the bulls on the upside. If the bulls manage to push the price above the upper resistance zone, $ 300 could be obtained, followed by $ 326.30.