Bullish sentiment for bitcoin (BTC) suffered a slight decline on November 12 after the Securities and Exchange Commission (SEC) rejected the exchange-traded product VanEck, which is designed to track the spot price of bitcoin.
However, this negative development was followed by the successful activation of the Taproot soft fork on 13 November. Bitcoin developer Hampus Sjöberg, who runs a website dedicated to Taproot, told Cointelegraph that “the biggest gain” was that Taproot demonstrated that Bitcoin can work on the network. updates that were critical to the viability of the network.
See daily market data for cryptocurrencies. Source: Coin360
Decentrader analysts also noted that the last major Bitcoin update was the implementation of Segwit in August 2017, followed by a sharp increase from $ 4,000 to $ 20,000 in four months.
Can bitcoin repeat its previous bullish momentum after the Taproot update and push altcoins higher? Let’s examine the charts of the 5 best cryptocurrencies that may resume the bullish trend over the next few days.
BTC / USDT
Bitcoin has returned to its 20-day exponential moving average ($ 62,954), which is an important support to watch. Traders usually buy the decline against the 20-day moving average in a strong uptrend.
BTC / USDT daily chart. Source: TradingView
Bullish moving averages indicate that buyers have an advantage, but negative RSI divergence warns that bullish momentum may weaken.
If the price jumps from the 20-day moving average, the bulls will try to push the price above the historic high of $ 69,000 and resume the rise. Then the BTC / USDT pair can rise to $ 75,000.
Alternatively, a pause and close during the 20-day EMA will signal that traders may be in a hurry to close. Then the pair may fall to the 50-day simple moving average ($ 57,938). A break below this support could signal the start of a deeper retracement towards $ 52,920.
4-hour BTC / USDT chart. Source: TradingView
The 4-hour chart shows that the pair is consolidating between $ 60K and $ 67K. Although the bulls pushed the price above the resistance range, they failed to keep the higher levels. The couple is back in the series again.
The 20-EMA has a slight slope and the RSI is just below the midpoint, indicating that the price may gradually move towards $ 60,000. A strong return from this level may prolong the range-limited move for a while, but a break below that level may signal a trend change.
Alternatively, if the price rises from today’s level, the bulls may challenge the upper resistance range of $ 67-69,000.
LTC / USDT
Litecoin (LTC) completed its round bottom formation when it broke and closed above the upper resistance of $ 225.30. The price quickly picked up and reached the psychological barrier of $ 300, where the bears resisted strongly.
Daily chart of LTC / USDT. Source: TradingView
The altcoin has corrected in recent days, but the 20-day moving average ($ 224) is starting to rise and the RSI is just below the overbought zone, indicating a bullish advantage. If the price breaks the current level or bounces off $ 225.30, buyers will try to resume the rise.
A break and closing above $ 300 could open the door for further progress to $ 340. The Bears probably have other plans when they try to pull the price out and keep it below the $ 225.30 breakout. If successful, the LTC / USDT pair may fall to the 50-day simple moving average ($ 192).
4-hour LTC / USDT chart. Source: TradingView
The 4-hour chart shows that the pair is trading in a falling wedge pattern. 20-EMA has caught up and the RSI is close to the midpoint, indicating a balance between supply and demand.
This balance can shift in favor of the bulls if they push the price over the wedge and hold it. Furthermore, the pair may rise to $ 280, and then to $ 295.70. This level can act as a serious resistance, but if the bulls overcome this obstacle, the pair can rise to the target of $ 302.10.
Alternatively, if the price falls below 50-SMA, sales may intensify and the pair may fall to strong support of $ 225.30.
Correlation / USDT
Chainlink (LINK) bulls topped the upper resistance at $ 35.23 on November 9, 10 and 11, but failed to keep the price above it. This suggests that bears aggressively defend this level.