Bitcoin (BTC) and Ether (ETH) both recorded their highest monthly close in October, indicating strong momentum in favor of buyers. The focus is now shifting to November, which is largely positive for Bitcoin.
Since 2013, Bitcoin has closed November in the red only twice, in 2018 and 2019. Another positive factor for Bitcoin could be a tailwind from the US stock markets, which also have an enviable reputation in November.
The S&P 500 posted an average gain of 2% in November, the only month of the year with such an impressive average return.
Daily performance in the cryptocurrency market. Source: Coin360
Glassnode data also shows that bitcoin stocks are at their lowest in three years. The number of bitcoins on stock exchanges fell from 3.1 million BTC in April 2020 to 2.47 million BTC. It could be optimistic for bitcoin if demand picks up, analysts said, as it could cause a supply shock.
Can Ether take cryptocurrency to the top, or will Bitcoin stay in the driver’s seat? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
On October 31, Bitcoin fell from the resistance line to the flag, but the bulls prevented the price from staying below the 20-day exponential moving average ($ 59,876). This is a positive sign as it shows that traders are buying on the downturn.
BTC / USDT daily chart. Source: TradingView
An eruption and a close above the resistance line will complete the bullish setting. The BTC / USDT pair could rise to an all-time high of $ 67,000. This level is likely to be the main obstacle, but if the bulls can overcome it, the pair could start on its way to the target of $ 89,476.12.
Bullish moving averages and relative strength index (RSI) in positive ranges indicate that the bulls have an edge. The first sign of weakness would be to erupt and exit below the 20-day moving average. This tension can cause outflow to the pattern guide.
Selling could accelerate if bears keep prices below the flag. The pair could then dip to the 50-day simple moving average (SMA) ($ 53,115).
ETH / USDT
The long tail of the November 1 Ether candle shows that bulls are aggressively buying on downturns. The bulls have prevented the price from falling and continuing below the 20-day moving average ($ 4,042) since October 1, indicating that sentiment is still positive.
ETH / USDT daily chart. Source: TradingView
If the bulls push the price above the upper resistance at $ 4,460.47, ETH / USDT may resume the trend. The pair could then rally to the psychologically important $ 5,000 level as bears are likely to pose a major challenge.
Contrary to this assumption, if the price falls from the upper resistance, the bears will try to bring the pair back to the 20-day moving average. This is an important support to look out for as a break below it could force short-term traders to take profits.
BNB / USDT
Björner has tried to get Binance Coin (BNB) below $ 518.90 in the past two days, but the long tail of the candle shows that the bulls have other plans. Lower levels are attracting strong buying and now the bulls will try to resume the uptrend.
BNB / USDT daily chart. Source: TradingView
The bullish 20-day EMA (486) and RSI just below the overbought zone indicate that the bulls are in control of the market. If the bulls keep the price above $ 540.50, the BNB / USDT pair could move towards the $ 554 target pattern and then to the psychological resistance of $ 600.
Conversely, if the price falls and breaks the 20-day EMA, it will indicate strong selling at higher levels. This could trap many bulls, pushing the pair to the critical support level of $ 392.20.
ADA / USDT
The bulls have successfully defended strong support at $ 1.87 in recent days, but are struggling to push Cardano (ADA) above the 20-day moving average ($ 2.07). This indicates a lack of demand at higher levels.
Daily ADA / USDT chart. Source: TradingView
Now the bears will try to lower the price below the support range of $ 1.87 to $ 1.80. If this happens, the ADA / USDT pair could drop to $ 1.58. Moving averages with a bearish bias and the RSI in negative territory indicate that the bears are in control.
Contrary to this assumption, if the price moves out of the current level and out of the moving averages, it would indicate a strong increase of $ 1.87. The pair may then rise to a general resistance of $ 2.47.
SOL / USDT
Solana (SOL) recovered from the 20-day moving average on October 31, indicating strong buying at lower levels.