In general, short-term fluctuations in cryptocurrency and stock prices are driven by sentiment and technology, while long-term trends tend to follow stronger fundamentals. Therefore, if the basics are undiminished, experienced investors see short sharp corrections as buying opportunities.
The data show that large investors, often referred to as “whales”, have been accumulating bitcoin (BTC) since March. Apart from these, many new retailers have also bought Bitcoin, indicating that high-income retailers believe that Bitcoin will function as a store of value during the looming crisis.
Roche Sharma, head of emerging markets and chief global strategist at Morgan Stanley, believes inflation is likely to rise early next year, so alternative assets are needed. Sharma said that about 5% of the portfolio could be in gold, and that “more adventurous” investors could reserve themselves for “bitcoins and other cryptocurrencies.”
While the long-term outlook for Bitcoin’s price is bullish, do the charts expect a bottom or another decline in the next few days?
Let’s take a look at the charts to find out.
Bitcoin / US dollars
Bitcoin has been stuck in the $ 9835 to $ 10625 range in recent days, indicating that both bulls and bears are playing cautiously and waiting for the next trend to start before betting big.
The long tail of the lights over the past five days shows that the bulls bought low, but failed to push the price over the upper end of the range to $ 10,625, indicating that demand at higher levels is shrinking.
The 20-day sloping exponential moving average ($ 10,902) and negative territory RSI indicate that the bears have an edge.
If the Bears can fall and close (UTC) below $ 9,835, the bitcoin / dollar pair could fall to the next support of $ 9,000 and then to $ 8,000.
This bearish feeling would be invalidated if the bulls managed to push the price above the $ 10,625 and $ 11,000 range. Such a move will mean that the correction is over.
ETH / USD
ETH has formed in daily candles for the past three days, indicating that bulls and bears are swinging for the next trend movement.
This decline in volatility is likely to disappear with strong movement in the next few days. 20-day EMA ($ 381) and negative territory RSI indicate that the bears have an edge.
The ETH / USD pair may weaken if the bears reduce their price below the $ 308,392-288 support zone. If the price continues to stay below $ 288, sales are likely to increase, which could push the pair down to $ 220.
However, if the volatility spreads higher and the pair overcomes the resistance level of $ 366, it is possible to go up to 50% Fibonacci retracement level of $ 398,263.
XRP / US Dollar
XRP has maintained support of $ 0.235688 in recent days, but bulls have failed to pull off this significant recovery, indicating a decline in demand at higher levels.
If the XRP / USD does not rise above $ 0.245 in the next few days, the Bears will try to resume the correction again. The 20-day moving average ($ 0.26) slopes and the RSI trades below the 40 level, indicating the bears’ advantage.
If the price of a bear falls below $ 0.229, it may fall to a range of $ 0.19-0.20. This bearish feeling would be invalidated if the bulls were able to push the price and hold over the total resistance of $ 0.268478.
Link / USD
While the bears aggressively defend the overall resistance of $ 12.89, on the positive side, the bulls prevented Chainlink (LINK) from falling below the trend line, indicating purchases at lower levels.
If the bulls manage to push the price above the resistance zone between $ 12.89 and $ 13.24, it is likely to be a rally downward. A breakdown of this resistance will be the first sign that the downtrend may end.
However, the 20-day moving average has a slope ($ 13.53), and the RSI is in negative territory, indicating the bears’ advantage.
If the LINK / USD pair falls from the current level or resistance, the bears will try to push it below the trend line. If successful, the price could drop to $ 8,908.