Bitcoin (BTC) dominance fell from 48% on October 20 to 42.3% on November 7, while the total market value of the cryptocurrency continued its journey north. This indicates that price action has shifted from bitcoin to altcoin.
CryptoQuant CEO Ki Yong Joo said bitcoin whales are on sale, but that did not break the strong $ 60,000 support. He also noted that bitcoin reserves on exchanges continued to decline, indicating a strong appetite for buyers.
See daily cryptocurrency market data. Source: Coin360
According to a PlanB survey, the majority of market participants are still positive about Bitcoin and expect it to grow to $ 288,000 by early 2022.
Raoul Pal, also the founder of Real Vision, predicted a bullish picture of cryptocurrency in an interview on November 3. He said the current trend is unlikely to spread in December this year and could last from March to June next year. Pal expects the potential Ethereum 2.0 launch and the possibility of Ether (ETH)-traded funds going green in the first half of 2022 will attract institutional investors and lead to a massive rally.
Against this bullish background, let’s analyze the charts of the top 5 cryptocurrencies that can stay the focus and surpass them in the short term.
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BTC / USDT
Bitcoin broke the bull flag pattern on November 2, but buyers were unable to capitalize on the move and pushed the price above the upper resistance range of $ 64,854 to $ 67,000. This suggests that the bears have not given up yet and are trying to stop the upward movement.
BTC / USDT daily chart. Source: TradingView
In a positive sign, however, the bulls are aggressively defending the 20-day exponential moving average ($ 60,794). Buyers will make another attempt to push the price towards the upper resistance range.
If they do, the bullish momentum could intensify and the BTC / USDT pair is likely to rise to the target of $ 89,476.12.
This bullish appearance will be invalid if price breaks and retraces back into the flag pattern. After that, the pair may dip to the 50-day simple moving average ($ 54,883). A range between the 50-day SMA and $ 52,920 is likely to attract strong bull support.
4-hour BTC / USDT chart. Source: TradingView
The 4-hour chart shows that the pair is in the range of $ 63,732.39 to $ 59,500. Flat moving averages and the Relative Strength Index (RSI) just above the midpoint indicate a balance between supply and demand.
If the price bounces off the moving averages, the bulls will again try to push the price towards the upper resistance zone between $ 63,732.39 and $ 64,270. If they succeed, the pair will be able to test all-time highs again.
Conversely, a break below the moving averages could push the pair towards the strong support range of $ 59,500-58,000. The bears will take over if this area is violated. The pair was then able to correct to $ 55,267.61.
DOT / USDT
Polkadot (DOT) rallied and broke the top resistance to $ 49.78 on Nov. 1. The RSI broke above the downtrend line, canceling the negative divergence. This indicates the resumption of the trend.
DOT / USDT daily chart. Source: TradingView
On November 6, the bears tried to pull the price below the breakout level, but the long tail of the candlestick shows that the bulls are buying on downturns. Bullish moving averages and RSI near the overbought zone indicate that the path of least resistance is going up.
If the bulls pushed the price above $ 55.09, the DOT / USDT pair could rise to $ 63.08. The bears may have other plans as they try to push the price below the $ 49.78 breakout level. Such a move would indicate a shortage of buyers at higher levels.
A spike and a close below the 20-day moving average ($ 46.82) would be the first sign that the bulls could lose control. After that, the pair may dip to the 50-day simple moving average ($ 38.54).
DOT / USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the pair is growing within the ascending channel. Although the bulls pushed the price through the channel, they failed to take advantage of it. This indicates that bears are aggressively defending this resistance.
The pair has returned from the center line of the channel and the bulls will again try to remove the upper barrier. If successful, the pair can gain momentum.
Alternatively, if the price falls from the current level or upper resistance and breaks the middle line, the pair may fall to the support line. A rebound from this level will keep upside potential intact, but a break below it would signal a possible trend change.