Bitcoin’s struggle to surpass the $100,000 mark may prolong the current market correction, raising the crucial question of whether bulls will seize the opportunity to buy at lower levels.
The failure of the Bitcoin price to break above $100,000, following a peak of $94,317, triggered a pullback. However, this correction is anticipated to attract buying activity at lower price points. Data from the crypto tracking platform SoSoValue shows that US-based spot Bitcoin ETFs saw substantial inflows of $3.38 billion last week, reflecting strong investor interest even amidst the pullback.
In addition, MicroStrategy, a business intelligence firm, has significantly increased its Bitcoin holdings. Between November 18 and 24, the company acquired 55,000 Bitcoin for $5.4 billion at an average price of $97,862 per coin. This purchase brings MicroStrategy’s total holdings to 386,700 Bitcoin, further solidifying its position as a major player in the Bitcoin space.
However, traders need to be cautious because the markets have failed to break above the $100,000 level even after large inflows into Bitcoin ETFs and on the news of MicroStrategy’s purchase. The repeated failure to break above a significant resistance may tempt short-term bulls to book profits, starting a deeper pullback.
What are the critical support levels to watch out for in Bitcoin and altcoins? Let’s analyze the charts to find out.
S&P 500 Index (SPX) Market Analysis
The S&P 500 Index rose to a new all-time high on Nov. 25, but the long wick on the candlestick shows that the bears are trying to halt the rally.
SPX daily chart. Source: TradingView
If buyers do not give up much ground from the current level, the likelihood of a break above 6,021 increases. The index could travel northward to 6,221 and thereafter to 6,500.
This positive view will be invalidated in the near term if the price turns down and breaks below the 20-day exponential moving average (5,906). The index could then decline to the 50-day simple moving average (5,817). Buyers are expected to defend the 50-day SMA with all their might because a close below it will signal the start of a deeper correction to 5,670.
US Dollar Index (DXY) Market Analysis
The US Dollar Index turned down from the stiff overhead resistance of 108 on Nov. 22, indicating that the bears are aggressively defending the level.
DXY daily chart. Source: TradingView
The 20-day EMA (105) is the essential support to watch out for. If the price turns up from the current level or the 20-day EMA, it will indicate that the sentiment remains positive, and traders are buying on dips. The bulls will again try to drive the price above 108, starting a rally toward 114.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will suggest that the bulls are booking profits. That may pull the price to 105, extending the stay inside the range between 100 and 108.
Bitcoin (BTC) Market Analysis
Bitcoin is witnessing profit-booking by the short-term bulls, which has pulled the price to the uptrend line.
BTC/USDT daily chart. Source: TradingView
If the price bounces off the uptrend line with force, it will suggest that the bulls are buying on every minor dip. The bulls will again try to propel the BTC/USDT pair above $100,000. If they can pull it off, the pair could accelerate to $113,331 and then to $125,000.
Alternatively, a break below the uptrend line could sink the pair to the 20-day EMA ($89,213). This is the key level for the bulls to defend because a break below it may tug the pair to $85,000.
Ether (ETH) Price Analysis
Ether turned down from the downtrend line on Nov. 23, but a positive sign is that the bulls bought the dip.
ETH/USDT daily chart. Source: TradingView
Buyers are again trying to propel the price above the downtrend line. If they manage to do that, it will signal a potential trend change. The ETH/USDT pair could rally to $3,900 and eventually to $4,094. Sellers are expected to fiercely defend the zone between $3,900 and $4,094.
The 20-day EMA ($3,141) is the critical support to watch out for on the downside. A break and close below the 20-day EMA will suggest that the bulls have given up. The pair may plummet to the breakout level of $2,850.
Solana (SOL) Price Analysis
Solana has pulled back toward the 20-day EMA ($225), indicating profit-booking by the bulls.
SOL/USDT daily chart. Source: TradingView
The 20-day EMA is the important support to watch out for. If the price rebounds off the 20-day EMA with force, it will indicate solid demand at lower levels. That will improve the prospects of a break above $265. The SOL/USDT pair could ascend to $304.
Contrarily, if the price continues lower and breaks below the 20-day EMA, it will signal that the bulls are rushing to the exit. The pair may retest the breakout level of $210, which is likely to attract buyers.
BNB Price Analysis
BNB bulls are struggling to sustain the price above $667, indicating a lack of demand at higher levels.
BNB/USDT daily chart. Source: TradingView
Sellers will try to make a comeback by pulling the price below the moving averages. If they do that, the BNB/USDT pair could descend to the uptrend line.
Instead, if the price stays above the 20-day EMA ($622), it will signal an advantage to the bulls. That increases the possibility of a break above $667. If that happens, the pair could rally to $722. Sellers will try to halt the up move at $722, but if the bulls prevail, the pair could extend the rally to $810.
XRP Price Analysis
XRP witnessed volatile moves on Nov. 23 and 24, indicating a tough battle between the bulls and the bears.
XRP/USDT daily chart. Source: TradingView
Generally, vertical rallies are followed by sharp corrections or a period of consolidation. The XRP/USDT pair may swing between $1.27 and $1.63 for some time. If bears pull the price below $1.27, the pair could descend to the 20-day EMA ($1.05).
Conversely, a break and close above $1.63 will indicate the resumption of the uptrend. The pair may climb to $1.76 and eventually to $1.97. Sellers are expected to aggressively defend the $1.97 level.
Dogecoin (DOGE) Price Analysis
Dogecoin rose above the $0.44 resistance on Nov. 23, but the long wick on the candlestick shows selling at higher levels.
DOGE/USDT daily chart. Source: TradingView
The bulls will again attempt to achieve a close above $0.44. If they succeed, the DOGE/USDT pair could resume the uptrend. The rally could reach $0.50 and, after that, $0.59.
If bears want to prevent the upside, they will have to yank the price below the 20-day EMA ($0.34). That could start a deeper correction toward $0.30, indicating that the bulls are losing their grip.
Cardano (ADA) Price Analysis
Cardano’s pullback is finding support near the 50% Fibonacci retracement level of $0.92.
ADA/USDT daily chart. Source: TradingView
The RSI remains in the overbought territory, suggesting that the ADA/USDT pair could enter a consolidation for a few days. The range could be between $0.92 and $1.15. If buyers drive the price above $1.15, the pair could start the next leg of the upmove toward $1.25 and then to $1.64.
Conversely, a break and close below $0.92 will tilt the short-term advantage in favour of the bears. The pair could slide to the 61.8% retracement level of $0.86 and later to $0.80.
Avalanche (AVAX) Price Analysis
Avalanche rebounded off the breakout level from the ascending channel pattern on Nov. 24, indicating buying on dips.
AVAX/USDT daily chart. Source: TradingView
The bulls pushed the price above the overhead resistance of $45.27 on Nov. 25, but the long wick on the candlestick suggests selling at higher levels. The 20-day EMA ($35.39) is a vital support to watch out for on the downside. A rebound off the 20-day EMA will increase the possibility of a rally to $51 and later to $60.
This optimistic view will be negated if the price turns down and plunges below the 20-day EMA. Such a move will indicate that the markets have rejected the breakout. The AVAX/USDT pair may decline to the 50-day SMA ($29.75).
