US Federal Reserve Chairman Jerome Powell recently said that further fiscal stimulus could lead to a stronger recovery. He also assured that the Fed has sufficient instruments to support the economy.
Following the announcement of the winner of the US election, the attention of lawmakers may shift to the next stimulus package. However, printing additional cash will only exacerbate the current government debt of $ 27.2 trillion.
While new stimulus measures may be required in the short term to cushion the impact of the economic crisis caused by the COVID-19 pandemic, analysts believe the Fed may not be able to reverse the measures in the future.
For this reason, concerned institutional investors backed their portfolio with gold, and several other investors, such as billionaire hedge fund manager Paul Tudor Jones, requested the purchase of bitcoin (BTC).
Galaxy Digital CEO and investor Mike Novogratz believes Bitcoin is in a bullish phase. Therefore, Bitcoin hodlers recently advised to sit back and turn off phones in the face of emotion in order to lock in profits after the last rally.
While long-term investors can manage their positions, short-term traders should be vigilant not to recoup most of their unrealized profits.
Let’s analyze the cards of the top 10 cryptocurrencies to see if the rally has peaked or may continue.
Bitcoin / US dollar
Bitcoin (BTC) closed above $ 14,000 on November 4, followed by a strong rally on November 5. Today the price reached an intraday high of $ 15,956.26, which is currently serving as resistance.
However, the trend is clearly in favor of the bulls and any fall is likely to be seen as a buying opportunity.
While the RSI denies negative divergence, it has moved deep into the overbought zone, indicating that several days of consolidation or correction may be imminent.
If the bulls buy the lowest price of $ 14,000, it would mean that past resistance has become supportive, and this level may serve as a basis for future falls.
Sometimes the RSI can stay in the overbought zone for a long time during a buying crisis. Thus, if the bulls can push the price above $ 16,000, it can move into the resistance range of $ 17,000-17,200. This is the final hurdle before record highs.
However, the vertical advance rarely continues and usually ends in a sharp decline. Therefore, traders should be careful even if the trend continues.
Bullish views will disappear if BTC / USD falls and falls below the $ 14,000 support level.
ETH / USD
Ethereum (ETH) gained momentum after bulls pushed the price towards a bearish line on November 4. The 20-day exponential moving average ($ 395) and the RSI indicator near the overbought zone indicate that the bulls are in control.
The next upside target is $ 450, and if the bulls can push the price above that resistance, Ethereum / USD could hit $ 488,134. While bears offer resistance at $ 450, bulls are likely to buy into traps when sentiment is positive.
The first sign of weakness will be a break during the 20-day EMA, and gains will shift towards the bears if the 50-day SMA ($ 374) breaks.
XRP / US dollar
XRP has largely limited the $ 0.2295 to $ 0.26 range in recent weeks. The lack of bears to break through the range on November 3 attracted buyers who pushed the price towards range resistance.
If the bulls manage to push the price and hold it above $ 0.26, the XRP / USD pair could launch a new trend that could lead to a rally to $ 0.303746. The RSI climbed above the 60 level for the first time since August, signaling a strong return to the bulls.
Contrary to this assumption, if the pair falls from the current level or fails to hold above $ 0.26, it is likely that there will be limited range movement for a few more days. The trend will reverse in favor of the bears if the pair falls below the support zone from $ 0.2295 to $ 0.219712.
BCH / USD
The rejection of support at $ 231.93 has reached the 20-day moving average ($ 255) as bears may offer resistance. If Bitcoin Cash (BCH) falls from its current level, the Bears will try to bring the price back below $ 231.93 again.
Conversely, if the bulls push the price above the 20-day moving average, Bitcoin Cash / USD could rise to the upper resistance zone of $ 272 to $ 280.
The 20-day moving average has flattened out and the RSI rallied to its midpoint, indicating near-term range potential.