The Bitcoin (BTC) price has lost its upward momentum, yet market data indicates that traders are preparing to capitalize on significant price drops.
On Nov. 2, Bitcoin surged beyond the $35,000 mark, attracting enthusiastic bullish investors who believed a new phase of the upward trend was commencing. However, the price swiftly reversed course and dropped below $35,000, casting doubt on the legitimacy of the breakout.
During an uptrend, a minor correction doesn’t necessarily indicate a shift in the overall trend. It is generally considered a healthy development as it eliminates less confident investors. In bullish markets, declines are often perceived as buying opportunities, but it is advisable to wait for the price to stabilize before making purchases. Potential intense support levels should be monitored as potential zones where buyers may intervene to halt the decline.
MicroStrategy founder and executive chairman Michael Saylor said in an interview with CNBC that if traders hold a 12-month to 48-month time horizon, the current level is “a pretty ideal entry point into the asset.”
Bitcoin’s weakness has pulled several altcoins lower. What are the critical support levels where the decline could end?
Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) price analysis
Bitcoin surged above $35,280 on Nov. 1 and tried to build upon this rally on Nov. 2, but the bears had other plans. Sellers stalled the up-move at $35,985 and are trying to sustain the price below $35,000.
BTC/USDT daily chart. Source: TradingView
If they do that, the BTC/USDT pair may skid to $33,390. This is an essential level for the bulls to defend because if $33,390 cracks, the pair may fall to the 20-day exponential moving average ($32,611).
Generally, in an uptrend, the bulls fiercely defend the 20-day EMA. If the level holds, it will indicate that the trend remains positive. The bulls will then make one more attempt to kick the price to $40,000.
A break and close below the 20-day EMA will be the first sign that the bulls may lose their grip. The pair may then tumble to $31,000.
Ether (ETH) price analysis
The bulls nudged Ether above the immediate resistance at $1,865 on Nov. 2, but the bears pulled the price back below the level, indicating strong selling at higher levels.
ETH/USDT daily chart. Source: TradingView
The bears will try to sink the price to the strong support at $1,746. This remains the fundamental level to watch because a break and close below it will signal that the bears are back in the driver’s seat.
Meanwhile, the bulls are likely to have other plans. They will try to buy the dips and overcome the obstacle at $1,865. If they can pull it off, the ETH/USDT pair could start a rally to the psychologically critical level of $2,000.
BNB price analysis
BNB bounced off the breakout level of $223 on Nov. 1, indicating that the bulls are fiercely defending this level.
BNB/USDT daily chart. Source: TradingView
Buyers tried to thrust the price above the $235 resistance on Nov. 2, but the 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 the positive territory indicate the path of least resistance is to the upside. If bulls kick the price above $235, the pair may jump to $250 and eventually to $265. Conversely, the trend will shift in favour of the bears if they sink and sustain a price below $223.
XRP price analysis
XRP faces 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
The buyers will try to drive the price to the overhead resistance at $0.67. This level may again pose a solid challenge for the buyers, but if they bulldoze their way through, the rally could extend to $0.75 and subsequently to $0.85. The upsloping 20-day EMA ($0.56) and the RSI in the overbought zone indicate that bulls are in control.
If bears want to make a comeback, they will have to yank the price back below $0.56. The XRP/USDT pair may collapse to the 50-day SMA ($0.52).
Solana (SOL) price analysis
Solana climbed above $38.79 on Nov. 1 and reached near the target objective at $48, but the long wick on the day’s candlestick shows that traders aggressively booked profits at this level.
SOL/USDT daily chart. Source: TradingView
The price rebounded off $38.79 on Nov. 2, but the bulls could not sustain the intraday highs, suggesting that every rally is being sold into. The bears will try to build upon their advantage and sink the SOL/USDT pair below $38.79.
If they succeed, it could move downward toward the 20-day EMA ($32.41). Such a deep correction will suggest an end to the up-move soon. The pair may then enter a consolidation phase for a few days.
If the Bulls want to maintain their advantage, they must defend the $38.79 support. If the price rises from this level with strength, the pair may retest the overhead resistance at $48.
Cardano (ADA) price analysis
Cardano snapped back from the 20-day EMA ($0.28) on Nov. 1 and rose above $0.30, indicating that the bulls view the dips as a buying opportunity.
ADA/USDT daily chart. Source: TradingView
The price turned down from $0.33 on Nov. 2, but the bulls did not cede ground to the bears. This is a positive sign as it shows that the bulls are holding on to their positions as they anticipate the up-move to continue. The target on the upside is $0.38.
Contrary to this assumption, if the price turns lower and breaks below $0.30, it will indicate that the markets have rejected the higher levels. The ADA/USDT pair could slump to the 20-day EMA ($0.28).
Dogecoin (DOGE) price analysis
Dogecoin rebounded off the 20-day EMA ($0.06) on Nov. 1, but the bulls could not sustain the higher levels.
DOGE/USDT daily chart. Source: TradingView
The price returned to the 20-day EMA on Nov. 3, but the long tail on the candlestick shows that the bulls are fiercely defending the level. Buyers are again attempting to propel the price above $0.07. If they are successful, the DOGE/USDT pair will try a rally to $0.08. This level may again witness strong selling by the bears.
On the contrary, if the price again turns down from $0.07, it will signal that bears are selling on rallies. A break and close below the 20-day EMA will indicate that the Bears are back in the game. The pair may then tumble to $0.06.
Toncoin (TON) price analysis
Toncoin rose to the overhead resistance of $2.31 on Nov. 2, but the bulls could not overcome the obstacle. This suggests that the bears are defending the level with vigour.
TON/USDT daily chart. Source: TradingView
The upsloping moving averages and the RSI in the positive territory indicate that the bulls have a slight edge. A strong rebound off the moving averages will improve the prospects of a rally above $2.31. If this level is scaled, the TON/USDT pair could start its journey toward $2.59.
Instead, if the price turns down from the overhead resistance and breaks below the moving averages, it will suggest that the pair may swing between $1.89 and $2.31 for a few days.
Chainlink (LINK) price analysis
Chainlink has been facing resistance near $11.50, indicating that the bears have not given up and continue to sell on rallies.
LINK/USDT daily chart. Source: TradingView
The failure to sustain the higher levels may have tempted short-term traders to book profits on Nov. 2. That pulled the price back toward the 20-day EMA ($10.11). This remains the critical level to watch out for on the downside.
If the rebound off the 20-day EMA sustains, it will suggest strong demand at lower levels. The bulls will then make one more attempt to rise above $11.50. If they succeed, the LINK/USDT pair may surge to $13.50 and $15. Contrarily, a slide below the 20-day EMA may result in a retest of $9.50.
Polygon (MATIC) price analysis
Polygon has been moving up gradually, but the rally lacks momentum. This shows hesitation among the bulls to continue buying at higher levels.
MATIC/USDT daily chart. Source: TradingView
The rising moving averages and the RSI near the overbought zone indicate that bulls have the upper hand. If bulls clear the overhead hurdle at $0.70, the MATIC/USDT pair could rally to $0.74 and then to $0.80.
The bears are currently posing a solid challenge near the overhead resistance at $0.70, but they will have to sink the price below the 20-day EMA ($0.61) to weaken the bullish momentum. The pair may oscillate inside the extensive range between $0.50 and $0.70 for a while.
