New Week Starts With Green Wave — Price Analysis, 23 Nov 2020
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The crypto market has just recorded another exceptionally positive week. The price of Bitcoin has approached the psychological level of $19,000 per one digital coin, which is very close to the all-time high from December 2017. That is why the crypto community has become very bullish, and multiple remarkably optimistic Bitcoin price predictions have started to pop up one after another.
On November 16, well-known crypto bull and former Goldman Sachs banker Mike Novogratz wrote on Twitter that he remained bullish on cryptocurrency and even bought more BTC and ETH to take advantage of the rally:
Moreover, the billionaire advised Game of Thrones star Maisie Williams that it is the right time to invest in Bitcoin because the cryptocurrency will hit $65,000 per one digital coin since tons of new buyers are entering the market and the supply is limited:
Bitcoin is a very promising financial asset, much more functional than gold, and it is probably going to replace the precious metal to a large extent, BlackRock’s CIO of Global Fixed Income Rick Rieder said in an interview on CNBC on November 20.
Now, given all these phenomenally positive statements made by key figures in the financial world, the big question among cryptocurrency enthusiasts is where the price of Bitcoin is heading and at which level the next top will form. The crypto-related threads in Twitter are full of BTC prediction polls:
Even CoinMarketCap.com, one of the leading cryptocurrency market data aggregators, has organized a Bitcoin price prediction game:
However, some Bitcoin bulls think there is no point in trying to capture the next BTC top since the cryptocurrency will simply keep increasing gradually and unlimitedly. Prominent Bitcoin bull Max Keiser highlighted in “ Keiser Report Episode 1621 on RT-International that Bitcoin has no top because fiat money has no bottom.”
The new week starts with a green wave as well. At the time of writing, according to Coin360.com, one Bitcoin costs €15,635.50 (+1.69%), one Ethereum — €492.52 (+8.74%), and one LINK — €12.66 (+3.22%):
Now let’s dive into the price charts of the leading cryptocurrencies against the euro.
In the weekly time frame (1W) of BTC/EUR, the sequence of bullish candlesticks with ascending local lows and ascending local highs continues, which is a solid bullish signal:
However, we would like to outline that in the daily chart (1D), a Doji candlestick ( potential trend reversal candlestick) was formed, followed by a Hammer candlestick that was able to renew the local low of the Doji and the local low of the bullish candlestick prior the Doji.
Theoretically, this is an accumulation of potential trend reversal ( bearish) signals. Additionally, in our view, this slight correction is taking place because some traders and investors are booking profit and exiting the market. That’s why it is worth staying vigilant and keeping an eye on the daily price chart.
Nevertheless, we would like to show that in the 1-hour chart, BTC/EUR is still fluctuating within the trajectory of an Ascending channel ( uptrend):
If we take into account the technical patterns and candlestick formations in the different time frames, we may conclude that the bulls are still dominating the market. However, some slight resistance is appearing.
The daily price chart of Ethereum is absolutely interesting! As we can see from the chart below, ETH/EUR formed a Double Bottom ( a classical trend reversal pattern that looks like “W”):
Since the price chart went through the neckline of the Double Bottom, we may conclude that this was the end of the bear market, and probably we are at the very beginning of a new uptrend, so maybe it is time to hodl.
In the 4-hour chart, LINK/EUR is moving forward within the Ascending channel ( uptrend) and is currently consolidating at the 61.8 Fibonacci retracement level, which is at €12.85:
In our estimation, if the positive sentiment in the crypto market remains, then the bulls will be able to push LINK/EUR to the 76.4 Fibonacci retracement level or a level of approximately €14.41.
Conversely, if the market sentiment changes into a bearish one, then LINK/EUR may drop to the 50.0 Fibonacci Retracement level or a level of approximately €10.32.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex’s content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.
Originally published at https://bitvalex.com.
New Week Starts With Green Wave — Price Analysis, 23 Nov 2020 was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.