Bitcoin Rally Pauses as Altcoins Surge: Market Analysis and Predictions
Summary:
The article outlines the recent trends and predictions for digital currencies, focusing on Bitcoin and several altcoins. Despite Bitcoin's rally stalling near $36,000, long-term holders continue to retain their holdings, possibly indicating market tightness. The significant build-up in Bitcoin derivatives markets also suggests potential short-term volatility. Meanwhile, select altcoins have started to garner attention from traders, leading to robust rallies. The movements and potential of Ethereum, BNB, XRP, Solana, Cardano, Dogecoin, Toncoin, Chainlink, and Polygon are individually analyzed. The article concludes by reminding readers to conduct personal research before making any investment or trading decisions.
Despite a halt in Bitcoin's (BTC) surge near $36,000, investors don't seem to be in a hurry to cash out. As per insights from Glassnode, the number of addresses holding Bitcoin for at least 155 days, termed as the Long-Term Holder supply, is near its peak, whereas the supply of the Short-Term Holders holding coins for less than 155 days is near a record low, signalling a strain on Bitcoin supply. However, the bullish long-term outlook could face short-term volatility as open interest in Bitcoin derivatives markets surpasses $16 billion, CoinGlass data indicates. On-chain analytics platform CryptoQuant contributor J.A. Maartunn has pointed out in a X (formerly Twitter) post that former spikes in open interest above $12.2 billion resulted in at least a 20% drop in value.
Amid signs of a potential short-term Bitcoin decline, traders have begun amassing select altcoins, resulting in remarkable rallies in several of these. While these rallies could see instances of profit-taking, they still remain the centre of attention as long as Bitcoin maintains above $30,000.
The fluctuating Bitcoin trend has held back investors, but indicators point towards a bullish momentum if the price crosses the 20-day exponential moving average ($33,612), with a likely rise to $40,000. Any significant selling pressure at this point indicates a probable dip to $32,400 and subsequently $31,000.
Ethereum (ETH), inching closer to the significant resistance of $2,000, is also predicted to boost momentum if it surpasses the minor resistance of $2,200, potentially leading to a rally towards $3,500. A drop below the 20-day EMA ($1,800) could lead to further downfall to $1,746.
Despite running into resistance at the $256 mark on Nov 6, BNB (BNB) may bounce back following a potential drop to the 20-day EMA ($232), possibly breaking the resistance and reach up to $265. A break below the 20-day EMA, however, could spell trouble.
XRP (XRP), after crossing the $0.67 resistance on Nov 6, was stalled at $0.74, which might have led the short-term investors to pull out, reducing the price below $0.67 on Nov 7. However, a rise above $0.63 could renew the rally upto $0.74 and possibly $0.85 and thereafter, to $1. A drop below $0.63 may result in a slump towards the 20-day EMA ($0.60).
Currently stalled between the overhead resistance at $48 and the support at $38, Solana (SOL) could surge to $60 following any potential rise and retraction from the $48 mark. Or a deeper correction to $50-day SMA ($27.35) could be in the offing if the price dips below the 20-day EMA ($36.30).
Following a strong uptrend, Cardano (ADA) could see the bulls holding back at $0.38 on Nov 6, triggering a potential rally to $0.42 and subsequently $0.46, provided the price maintains above $0.33.
Having encountered resistance at $0.08, Dogecoin (DOGE) is set for a psychological boost if it overcomes this mark and pushes towards the $0.10 mark, barring any sudden retreat below the 20-day EMA.
After surpassing the overhead resistance of $2.59 on Nov. 8, Toncoin (TON) is on a bullish trend with a target objective of $4.03 while a swift fall below $2.59 may lead to a sharp corrective fall to $2.31.
Chainlink (LINK) is experiencing an upward trend and is expected to hit resistance at $13.50. Overcoming the hurdle could result in a rally towards $15 and subsequently $18, otherwise, the price could plummet below the 20-day EMA ($11.18).
Having crossed the overhead resistance at $0.70 on Nov.6, Polygon (MATIC) is expected to encounter minor resistance at $0.80 and if overcome, could reach $0.90, with a potential fall towards the 20-day EMA ($0.66) if a consolidation or correction is initiated.
Please note this article does not deliver investment advice or recommendations. Every investment or trading move involves risk, and individual research should precede any decision-making process.
Published At
11/8/2023 6:48:24 PM
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