Bitcoin (BTC) rose above $35,000 on November 2nd, which may have attracted the aggressive bulls who speculated that the next leg of the uptrend was about to begin. However, the price quickly reversed and fell back below $35,000, suggesting that the breakout may have been a fake move.
A slight correction during an uptrend does not mean a change in the trend. It is generally a healthy sign as it shakes out weak hands. When markets are trending upwards, dips are seen as buying opportunities, but it is better to wait until the price has bottomed out to buy. Strong support levels could be viewed as potential places for buyers to step in to halt the decline.
Daily cryptocurrency market performance. Source: Coin360
Michael Saylor, founder and chief executive of MicroStrategy, said in an interview with CNBC that current levels are “a pretty ideal entry point into the asset” if traders have a time horizon of 12 to 48 months.
Bitcoin’s weakness has dragged several altcoins lower. What are the key support levels where the decline could end?
To find out, let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin price analysis
Bitcoin rose above $35,280 on November 1st and attempted to build on that rally on November 2nd, but the bears had other plans. The sellers stopped the uptrend at $35,985 and are trying to keep the price below $35,000.
BTC/USDT daily chart. Source: TradingView
If they do, the BTC/USDT pair could slide to $33,390. This is an important level for the bulls to defend because if $33,390 is broken, the pair could fall to the 20-day exponential moving average ($32,611).
Generally, in an uptrend, bulls vigorously defend the 20-day EMA. If the level is held, it suggests that the trend remains positive. The bulls will then make another attempt to push the price to $40,000.
A break and close below the 20-day EMA would be the first sign that bulls may be losing control. The pair could then fall to $31,000.
Ether price analysis
Bulls pushed Ether (ETH) above immediate resistance at $1,865 on November 2, but bears pulled the price back below that level, suggesting heavy selling at higher levels.
ETH/USDT daily chart. Source: TradingView
The bears will attempt to lower the price to the strong support at $1,746. This remains the key level to watch as a break and close below will signal that the bears are back in charge.
Meanwhile, the bulls may have other plans. They will look to buy on downturns and try again to overcome the obstacle at $1,865. If they succeed, the ETH/USDT pair could start a rally to the psychologically critical $2,000 level.
BNB price analysis
BNB (BNB) rebounded from the breakout level of $223 on November 1, indicating that bulls are fiercely defending this level.
BNB/USDT daily chart. Source: TradingView
Buyers attempted to push the price above the $235 resistance on November 2, but bears held their ground. This suggests that the BNB/USDT pair is stuck between $223 and $235 for some time.
The rising 20-day EMA ($223) and the RSI in positive territory suggest the path of least resistance is to the upside. If bulls push the price above $235, the pair could rise to $250 and eventually $265. Conversely, the trend will shift in favor of the bears if they lower and sustain the price below $223.
XRP price analysis
XRP (XRP) is facing resistance near $0.61, but a positive sign is that the bulls have not lost ground to the bears.
XRP/USDT daily chart. Source: TradingView
Buyers will attempt to push the price towards the upper resistance at $0.67. This level could once again pose a major challenge for buyers, but if they break through, the rally could extend to $0.75 and then to $0.85. The rising 20-day EMA ($0.56) and the RSI in overbought territory suggest bulls are in control.
If the bears want to make a comeback, they will have to push the price back below $0.56. The XRP/USDT pair could then fall to the 50-day SMA ($0.52).
Solana price analysis
Solana (SOL) climbed above $38.79 on November 1 and was close to hitting its target target at $48, but the long wick on the day’s candle shows traders aggressively booking profits at this level.
SOL/USDT daily chart. Source: TradingView
The price recovered from $38.79 on November 2, but bulls failed to hold the intraday highs, suggesting any rally will be sold off. The bears will look to extend their advantage and sink the SOL/USDT pair below $38.79.
If they succeed, there could be a bearish move towards the 20-day EMA ($32.41). Such a deep correction indicates an imminent end to the uptrend. The pair could then enter a consolidation phase for a few days.
If the bulls want to maintain their advantage, they will need to defend the $38.79 support. If the price rises sharply from this level, the pair could retest the overhead resistance at $48.
Cardano price analysis
Cardano (ADA) rebounded from the 20-day EMA ($0.28) on November 1 and rose above $0.30, suggesting that bulls are viewing the dips as a buying opportunity.
ADA/USDT daily chart. Source: TradingView
The price fell from $0.33 on November 2nd, but the bulls did not give in to the bears. This is a positive sign as it shows that the bulls are sticking to their positions as they expect the uptrend to continue. The upside target is $0.38.
Contrary to this assumption, if the price declines and falls below $0.30, it will indicate that the markets have rejected the higher levels. The ADA/USDT pair could then fall to the 20-day EMA ($0.28).
Dogecoin price analysis
Dogecoin (DOGE) rebounded from the 20-day EMA ($0.06) on November 1, but bulls failed to sustain the higher levels.
DOGE/USDT daily chart. Source: TradingView
The price returned to the 20-day EMA on November 3, but the long tail of the candle shows that bulls are fiercely defending this level. Buyers are trying to push the price above $0.07 again. If successful, the DOGE/USDT pair will attempt a rise to $0.08. At this level, there could be another strong selling by the bears.
On the contrary, if the price drops again from $0.07, it would be a signal that the bears are selling on rallies. A break and close below the 20-day EMA suggests that the bears are back in play. The pair could then fall to $0.06.
Related: Bitcoin disappoints as Markets Pro delivers 88% gain in 29 hours
Toncoin price analysis
Toncoin (TON) rose to the upper resistance at $2.31 on November 2, but the bulls were unable to overcome the obstacle. This suggests that the bears are defending the level vigorously.
TON/USDT daily chart. Source: TradingView
The rising moving averages and the RSI in positive territory suggest that the bulls have a slight lead. A strong rebound from the moving averages will improve the prospects of a recovery above $2.31. If this level is reached, the TON/USDT pair could start its journey towards $2.59.
If the price instead breaks away from the upper resistance and falls below the moving averages, it would suggest that the pair could fluctuate between $1.89 and $2.31 for a few days.
Chainlink price analysis
Chainlink (LINK) is facing resistance near $11.50, suggesting that bears have not given up and are continuing to sell on rallies.
LINK/USDT daily chart. Source: TradingView
The failure to sustain higher levels may have enticed short-term traders to book profits on November 2nd. This pulled the price back towards the 20-day EMA ($10.11). This remains the most important level to watch on the bearish move.
If the recovery from the 20-day EMA continues, it will indicate strong demand at lower levels. The bulls will then make another attempt to rise above $11.50. If they succeed, the LINK/USDT pair could rise to $13.50 and then to $15. In contrast, a break below the 20-day EMA could lead to a retest of $9.50.
Polygon price analysis
Polygon (MATIC) has been gradually rising, but the rally lacks momentum. This shows that bulls are hesitant to continue buying at higher levels.
MATIC/USDT daily chart. Source: TradingView
The rising moving averages and the RSI near the overbought zone suggest that bulls have the upper hand. If the bulls clear the upper hurdle at $0.70, the MATIC/USDT pair could rise to $0.74 and then to $0.80.
The bears are currently posing a major challenge near the overhead resistance at $0.70, but they need to push the price below the 20-day EMA ($0.61) to weaken the bullish momentum. The pair could then fluctuate within the broad range between $0.50 and $0.70 for a while.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.
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