While Bitcoin is extending its consolidation, Ether is setting new ATHs. At the same time, we are seeing dynamic movements on select altcoins. What is going on in the market like this? Let’s take a look at the charts, starting today exceptionally just with Ethereum!
There is definitely a lot going on here. In the last analysis, we mentioned the local bullish divergence present on the RSI. This one played out with increases, which extended the channel that Ether’s price action is currently in (marked in blue). This is a continuation of the breakout from the bullish flag, whose target could take the second largest cryptocurrency to the vicinity of $5,000. The MACD looks very healthy. It has avoided a bearish crossover, pulling the ETH price to a new ATH, located at $4,670 at the time of writing this article.
Meanwhile, the previously mentioned RSI is changing its character. It is located near the 75 level, indicating superior bullish strength and a stockpile of strength to continue the uptrend. However, this level has often been a resistance. This is confirmed by the divergence, marked in yellow in this case. The price is oscillating near the upper border of Bollinger Bands, however it does not breach them strongly enough to clearly indicate local declines.
Thus, a quite possible scenario is Ether’s reaching the USD 5,000 level and correction from this level. There are several support points that we should look for. The first of them is the zone marked with a grey rectangle, located between USD 4,400 and USD 4,000. This is the area between the May ATH and the local peak from September this year. The next level is the uptrend line outlined in green. It has the right to be confirmed as support during the potential downward movement. It is important that this line will be in the grey rectangle in time. A drop in price to the level where two such key factors converge could result in a solid defense.
The leading cryptocurrency seems a bit more lethargic, but nothing could be further from the truth. After closing above $60,000 for the first time ever this month, we are again seeing a willingness to continue the upward trajectory. The bullish pennant mentioned in the earlier analysis has, as expected, successfully knocked out the price. Taking into account that it is a part of a bullish flag, it suggests that the price may even go to the area above $80,000. This is a very optimistic prediction, but as we know, not impossible. It is supported by the MACD, suggesting an upcoming bullish cross. The Stochastic RSI reacts similarly, which has also reversed the earlier downtrend. However, the first obstacle will be the previous ATH, located just above $67,000. However, should it turn out that the pennant breakout was a false breakout, look for areas of support just below $60,000. As you can see from the price action and multiple drawn out candle wicks, there is strong demand there. However, it is possible that Bitcoin in the zone where it is currently located will remain for longer. It should be remembered that consolidation is also a form of correction, and its extension has the right to provide fuel for further dynamic movements.
November is always fruitful for the market
We are still in the bull market cycle. This cannot be denied. Such periods, when they appeared at the end of the year, always resulted in solid growths. Especially in November. Therefore, the new ATH of Ether is not surprising. This is a rather soft argument, but it also speaks for Bitcoin, which seems to be doomed to further upward price movements. The same can be said about altcoins. They often record three-digit increases within just one day. In this situation, however, a warning light should come on. Such dynamic movements have the right to result in equally strong corrections.