Bitcoin (BTC) has led the current rally in cryptocurrency in recent weeks, and this has increased its dominance from 56% on September 3 to 67% on November 18th. And with bitcoin nearing its all-time high, it appears that it is losing momentum when moving the shifts to altcoins. This has reduced Bitcoin’s dominance to around 62.3%.
The leader cannot manage the beef market in the long run. There are periodic shifts as the leader enters into a small consolidation or correction and the others take the lead. A similar rotation is currently taking place in the cryptocurrency markets, with Ether (ETH) and XRP leading the way, while Bitcoin is absorbing the gains.
As the current bullish phase matures and comments become more optimistic, more traders who missed the most of the move may start buying poorly performing assets that weren’t detected to the upside.
This stage is usually the climax. This way, traders can pay attention to underperforming currencies. When they start flying, it might be a sign that it is time to make a profit and run with their money.
Let’s analyze the top 10 digital currencies to determine whether the trend will continue or the short-term correction is just around the corner.
Bitcoin / USD
Bitcoin (BTC) is currently undergoing a slight correction with a strong bullish trend. A pullback from a strong trend usually lasts one to three days before resuming.
Since the bulls have not given up most of the reasons associated with the 52-week high at $ 18,965.75, this indicates that traders are in no hurry to close their positions as they expect the trend to continue.
The higher moving averages and the Relative Strength Index (RSI) in the overbought zone indicate bulls are in control. A break above $ 18,965.75 could trigger a rally of $ 20,000, which might be psychological resistance.
However, if the bulls are able to push the price above $ 20,000, the Bitcoin / USD pair will enter unknown territory and may rally vertically. Usually after this stage a sharp correction can be expected.
This bullish view is nullified if the price falls below the current level and the bears dip below the 20-day exponential moving average of $ 16,657.
ETH / USD
Ethereum (ETH) gained momentum after the bulls pushed the price back above $ 488,134 on Nov.20. Although the bears tried to stem the November 22 rally, the bulls were buying hard in the fall.
Both moving averages are sloping and the RSI is close to 80, indicating that everything is under bulls’ control.
Training resumed today with the breach of the psychological level of $ 600. Next resistance is at $ 625, but if the bulls can push the price above that level, the Ethereum / USD pair might drop to $ 800.
However, after a sharp rally in the past few days, the pair may pause at the $ 625 level and absorb gains for several days before taking the next direction.
XRP / US Dollar
XRP appears to be in a hurry to make up for the poor performance of the current cryptocurrency. After a doji candlestick on November 22nd, the bulls confirmed their dominance today and pushed the price above the $ 0.50 resistance level.
There is less resistance at $ 0.60, but if the bulls can push the price above it, XRP / USD could rise to $ 0.78.
While the RSI overbought levels are bullish in the early stages of the trend, a reading above 90 indicates panic buying. Usually, these periods are followed by an insane purchase of a severe correction or consolidation.
A break below the intraday low on Nov 22 to $ 0.40 could boost the sell-off and signal the end of the bullish momentum.
Link / USD
LINK is currently on an upward trend. Higher moving averages and RSI in positive territory indicate bulls are in control. The inverted head and shoulder pattern size is $ 19.2731.
However, the bears may have other plans. They will try to stop the drawdown and bring the price back below the $ 13.28 breakout level. The trend will be skewed in favor of the bears if they can move lower and keep the price below $ 11.80.
On the other hand, if LINK / USD bounces back to $ 13.28, it will indicate demand at lower levels. Then the bulls will try to resume the trend.
LTC / USD
A tough fight is spinning near $ 84,3334. The bulls are trying to keep Litecoin (LTC) above this level, while the bears try to pull the price below this level.
The long tail of the November 22 candlestick shows strong buying at the lows, while the long wick in the candlestick of the day shows selling at higher levels.