Bitcoin (BTC) has long been referred to as the digital gold by cryptocurrency enthusiasts. Now that the digital asset is facing its first economic crisis since its inception, Bitcoin has confirmed this story and surpassed gold significantly in 2020. This indicates two important things: Bitcoin is here to stay and it is a better bet than gold.
Some popular mainstream investors have already joined in the victory over Bitcoin, and Whalemap analysts estimate that organizations were major buyers in the $ 12,000 to $ 15,000 range.
The Galaxy Digital OTC desktops also reported an increase in institutional investor trading volume. CEO Mike Novogratz and Sales Manager Tim Blackas have shown confidence that more traditional investors and funds can enter the crypto space in 2021.
While most investors seem to be optimistic about bitcoin, the data on the chain indicates that some whales believe the rally could have taken the lead in the short term and thus they became sellers.
Let’s analyze the charts of the five most important cryptocurrencies to determine if the rally can last for a while or is a short-term peak.
Bitcoin / US dollar
Bitcoin (BTC) has not closed below the 10-week exponential moving average ($ 15,613) since Oct 8. This indicates that the trend is strong and the bulls buy on every weak fall without waiting for a major correction.
Bullish moving averages and the RSI in the overbought zone indicate that the bulls are in control. Buyers are currently trying to keep the price above the $ 16,000 immediate support.
If they succeed, BTC / USD could resume its trend with the next target of $ 17,200.
Conversely, if the pair falls below the 10-day moving average, traders will suggest taking profits at higher levels. Smaller support exists at $ 14,800, but if it breaks as well, the correction could extend to $ 14,000.
The 10-EMA on the 4-hour chart has flattened out and the RSI is close to the midpoint, indicating a balance between supply and demand. Bearish divergence on the RSI warns of weak momentum.
If the bears can pull the prize below a simple 50-EMA, it will drop to $ 14,800 and then to $ 14,400.
Contrary to this assumption, if the price bounces from current levels or from the 50-SMA and rises above $ 16,500, the next part of the uptrend may begin.
ETH / USD
Ether (ETH) fell from $ 478,058 on November 13, just below the strong overall resistance of $ 488,134 when the previous high peaked on September 1. Some profit is usually expected to overcome resistance.
However, if the bulls prevent the ETH / USD pair from losing most of its positions, it will increase the likelihood of a $ 488,134 breakout. Above this level, the bears may again try to stop the rally at the psychological level of $ 500.
If the bulls manage to push the price towards the resistance zone from $ 488,134 to $ 500, the rally could extend to $ 550. Bullish moving averages and RSI in positive territory point in favor of bulls.
These positive forecasts will be invalidated if the price falls below the 10-day moving average. If this happens, the pair could drop to $ 420 and then to $ 400. This movement may indicate the formation of a potential zone in the short term.
The 4 hours chart shows that the pair has broken through the rising wedge support line and that the RSI has also formed a bearish rejection.
In addition, the 10-EMA and RSI regression in negative territory indicates that the bears have an edge.
If the pair stabilizes below the 50-SMA, it could drop to $ 440 and then to $ 424. This short-term downtrend will become invalid if the price reverses and rises above $ 478,058.
XRP / US dollar
XRP has been stuck in the $ 0.23 to $ 0.26 range for over two months. The range resolved with a strong break at $ 0.26 on November 13. However, the bears are unlikely to surrender without a fight.
A battle between bulls and bears could push the price towards the $ 0.26 breakout level. If the bulls buy this drop and the price bounces off the breakout level, this would indicate that traders are buying where they expect higher levels in the future.
A 10-day bullish exponential moving average ($ 0.258) and a positive RSI in the territory indicate that the bulls have an edge. The next upside target is $ 0.30.