Bitcoin (BTC) nearly reached a new multi-year high at $ 16,000 this week, and legendary investor Bill Miller told CNBC that the law of supply and demand favors BTC. Although supply is increasing by about 2.5% annually, “demand is growing faster than that”. Miller predicts that all major banks, wealthy companies, and investment banks “will eventually take a certain stake in bitcoin.”

While Bitcoin’s volatility remains high, Miller expects investors to focus on Bitcoin’s resilience, as the risk of it reaching zero is much lower than before.

With a current market value of over $ 284 billion, Bitcoin will rank 18th compared to public companies in the United States. Only Mastercard, JPMorgan Chase, and Visa outperform Bitcoin in terms of market value.

However, after several media outlets declared Joe Biden the winner of the 2020 presidential election, the uncertainty in the long-contested vote count has ended. Market participants can now focus on the chosen decisions of the president-elect before aggressively buying or selling cryptocurrencies.

If bullish sentiment continues, these five digital currencies could outperform in the short term. Let’s analyze the charts to determine the critical support and resistance levels for each.

Bitcoin / USD
Bitcoin (BTC) is currently in a correction phase as part of a strong bullish trend. When sentiment is positive, traders see deflation to strong support levels as buying opportunities as they present a lower risk entry point.

The November 7 correction pushed the RSI down from deep overbought levels, indicating congestion of weak hands. However, the rising moving averages indicate that the smallest path of resistance is rising.

As the BTC / USD pair has risen sharply in recent days, it can consolidate the gains by going into play with a selection limited to several days. This movement will help the pair to form the solid base needed to storm all-time highs.

Therefore, the probability that the pair will remain in the level is $ 14,000 to $ 16,000 in the next few days.

A break over $ 16,000 could resume the trend with the next potential stop of $ 17,200, while a break below the 20-day exponential moving average ($ 13,793) could shift the advantage in favor of bears.

The correction of $ 15,956.26 found support just above the 50-day moving average on the 4-hour chart. The bulls are currently trying to resume their bullish move, but stumbled across a wall on the descending line.

If the price falls off the descending line, the bears will once again try to push the price below $ 14,000. However, the bulls will likely enter and buy this fall.

Conversely, if the bulls push the price above the falling line, it is possible to try again at $ 15,956.26. A break of this resistance could initiate the next phase of the uptrend.

Ether (ETH) is currently trading in a rising wedge pattern. On November 7, the bulls attempted to push the price over the wedge, but failed to maintain the higher levels.

On the positive side, the bulls have not given up and are currently trying to resume the bullish move. The 20-day bullish EMA ($ 405) and the RSI over 66 indicate the bulls have an edge.

If they manage to push and close the price above the wedge resistance line, it will raise this bearish pattern.

Sellers can try to stop the rally to $ 488,134, but if the bulls manage to push ETH / USD above that resistance, the map will accumulate to $ 520 then $ 550.

Contrary to this assumption, if the pair falls off the wedge resistance line, the bears will try to pull the price back towards the wedge support line. A break under the wedge can shift the advantage in favor of the bears.

The 4 hours chart shows that the bulls protected the 20 EMA, which is a positive signal. This indicates that the mood is bullish and that in times of recession buyers are building strong support levels.

If the bulls manage to push the price above $ 455, the pair will then attempt to resume its bullish move by breaching the $ 468.

This bullish outlook may be invalid if the pair falls from current levels or upper resistance and drops below $ 424. Such a move could drop the price down to $ 395.

Link / USD
Chainlink (LINK) formed an inverted head and shoulder pattern that completes on breakout and closes above resistance to $ 13.28. The target for this upward setup is $ 19.2731.

Source: CoinTelegraph