Bitcoin (BTC) has been leading the current crypto rally for the past few weeks and this has boosted its dominance from 56% on Sep. 3 to 67% on Nov. 18. However, as Bitcoin nears its all-time high, it seems to be losing momentum as the action shifts to the altcoins. This has pulled Bitcoin’s dominance down to about 62.3%.
No long-term bull market can be led by one leader alone. There are periodic rotations when the leader enters a consolidation or a minor correction, while others take the lead. A similar rotation is currently playing out in the crypto markets, with Ether (ETH) and XRP leading the rally while Bitcoin digests its gains.
Daily cryptocurrency market performance. Source: Coin360
As the current bull phase matures and the commentary turns even more bullish, several traders who have missed a large part of the move may start buying the underperforming assets which were not swept up in the bull run.
This phase usually marks a top. Hence, traders can keep a watch on the underperforming coins. When they start flying, it could be a sign that it’s time to book profits and run with your money.
Let’s analyze the top-10 cryptocurrencies to determine whether the uptrend will continue or if a short-term correction around the corner.
Bitcoin (BTC) is currently witnessing a minor correction in a strong uptrend. Usually, the pullback in a strong trend lasts between one to three days before the trend resumes.
BTC/USD daily chart. Source: TradingView
As the bulls have not given up much ground from the 52-week high at $18,965.75, it suggests that traders are not hurrying to close their positions because they expect the uptrend to continue.
The upsloping moving averages and the relative strength index (RSI) in the overbought territory suggest that bulls are in command. A breakout above $18,965.75 could result in a rally to $20,000, which may act as a psychological resistance.
However, if the bulls can drive the price above $20,000, the BTC/USD pair will enter uncharted territory and may rally vertically. Usually, after such a phase, a sharp correction could be expected.
This bullish view will be invalidated if the price turns down from the current levels and the bears sink the pair below the 20-day exponential moving average at $16,657.
Ether (ETH) picked up momentum after the bulls pushed the price above $488.134 on Nov. 20. Although the bears attempted to stall the rally on Nov. 22, the bulls purchased the dips aggressively.
ETH/USD daily chart. Source: TradingView
Both moving averages are sloping up and the RSI is close to 80, which suggests that bulls are in control.
The uptrend has resumed today with a breakout of the psychological $600 level. The next resistance is at $625 but if the bulls can thrust the price above this level, the ETH/USD pair could rally to $800.
However, after the sharp run of the past few days, the pair may stall at $625 and digest the gains for a few days before starting the next trending move.
XRP seems to be in an urgency to make up for the underperformance during the current crypto bull run. After the Doji candlestick on Nov. 22, the bulls have asserted their dominance today and have pushed the price above the $0.50 resistance.
XRP/USD daily chart. Source: TradingView
There is a minor resistance at $0.60 but if the bulls can drive the price above it, the XRP/USD pair could rally to $0.78.
While overbought levels on the RSI is a bullish sign during the early stages of an uptrend, a reading above 90 suggests panic buying. Usually, such periods of frenzied buying are followed by a sharp correction or a consolidation.
A break below the intraday low of Nov. 22 at $0.40 could intensify selling and signal an end to the bullish momentum.
Chainlink (LINK) is currently in an uptrend. The upsloping moving averages and the RSI in the positive territory suggest that bulls are in command. The pattern target of the breakout of the inverse head and shoulders setup is $19.2731.
LINK/USD daily chart. Source: TradingView
However, the bears are likely to have other plans. They will try to stall the up-move and pull the price back below the breakout level of $13.28. The trend will tilt in favor of the bears if they can sink and sustain the price below $11.80.
On the other hand, if the LINK/USD pair rebounds off $13.28, it will suggest demand at lower levels. The bulls will then attempt to resume the uptrend.
There is a tough battle in progress near the $84.3374 level. The bulls are attempting to sustain Litecoin (LTC) above this level while the bears are attempting to drag the price below it.
LTC/USD daily chart. Source: TradingView
The long tail on the Nov. 22 candlestick shows strong buying at lower levels while the long wick on today’s candlestick shows selling at higher levels. This could keep the LTC/USD pair range-bound for a few days.
However, the upsloping moving averages and the RSI in the overbought zone suggest bulls are in control. If they can push the price above $90, the next leg of the uptrend to $100 is possible.
Contrary to this assumption, if the bears can sink the price below $78, the pair may drop to the 20-day EMA ($71). Such a move will suggest that the bullish momentum has weakened.
Bitcoin Cash (BCH) soared above the overhead resistance at $280 on Nov. 21. Although the bears tried to fake this up-move by pulling the price back below $280 on Nov. 22, they could not sustain the lower levels. This suggests that bulls are buying on dips.
BCH/USD daily chart. Source: TradingView
If the bulls can push the price above $312.52, the BCH/USD pair could rally to $338 and then to $353. The bears may mount a strong defense in this zone but if the bulls can overcome this hurdle, the momentum could pick up.
Both moving averages are sloping up and the RSI is in the positive territory, which suggests that the buyers are in control. This bullish view will be invalidated if the bears sink and sustain the price below $280.
Polkadot (DOT) broke above the stiff overhead resistance at $5.5899 on Nov. 21. However, the bears pulled the price back below $5.5899 on Nov. 22 but could not sustain the lower levels. This suggests that the bulls are buying on dips.
DOT/USD daily chart. Source: TradingView
The bulls are again attempting to start a new uptrend by pushing the price above the overhead resistance at $5.8453. If they succeed, the DOT/USD pair could rally to $6.8619.
The upsloping 20-day EMA ($4.81) and the RSI near the overbought zone suggest an advantage to the bulls.
This positive view will be invalidated if the bears pull the price back below $5.5899 and then sink the pair below $4.95. Such a move will suggest that the current breakout was a bull trap.
Cardano (ADA) broke and closed above the $0.1142241 resistance on Nov. 20. This attracted aggressive buying from the bulls who easily pushed the price above the overhead resistances.
ADA/USD daily chart. Source: TradingView
The ADA/USD pair had risen to a new 52-week high today but the bears are trying to stall the current uptrend at the $0.1550 resistance. During the three previous occasions, when the RSI had risen close to 80, the pair had consolidated for a few days.
Hence, a few days of range-bound action near the $0.1550 overhead resistance is possible. If the bulls can drive the price above $0.1550, the rally could extend to $0.20. This bullish view will be invalidated if the pair plummets from the current levels and closes below $0.128.
Binance Coin (BNB) broke out and closed above the $27.30 to $28.97 range on Nov. 21 but the bulls could not capitalize on this strength and push the price to $32. This attracted selling by the bears and they tried to pull the price back below $28.97 on Nov. 22 but failed.
BNB/USD daily chart. Source: TradingView
The bulls are again attempting to push the price towards the top of the $25.6652 to $32 range. If the price turns down from the overhead resistance at $32, it will suggest a lack of demand at higher levels and a few more days of range-bound action is likely.
On the contrary, if the bulls can propel the price above the $32 to $33.3888 resistance zone, the BNB/USD pair could start the next leg of the journey that may carry it to the all-time high at $39.5941.
Bitcoin SV (BSV) surged above the $181 overhead resistance on Nov. 21, which marked a breakout from the $146 to $181 range the price had been stuck in since early September. After the breakout from a range, the bears usually try to fake the bullish move and they tried doing it on Nov. 22.
BSV/USD daily chart. Source: TradingView
However, the bulls used the lower levels to buy and they have currently resumed the new up-move that can reach $227 and if this level is also scaled, the rally may extend to $258.
Contrary to this assumption, if the price again turns down from the current level, the BSV/USD pair could remain range-bound between $181 and $194.
The trend will tilt in favor of the bears if they can sink and sustain the price below $181. Such a move could catch the aggressive bulls off guard and result in a drop to the moving averages.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.