Bitcoin (btc) is on track to finish the week with gains of around 6%, indicating continued demand from the bulls. MicroStrategy co-founder Michael Saylor said during a speech at the 2023 Australia Crypto Convention on Nov. 10 that monthly Bitcoin demand could increase between two and 10 times by the end of 2024. Additionally, the halving will reduce supply by half. Saylor expects both events to cause the price to "adjust upwards."
With a near-general consensus that Bitcoin's price will rise in 2024, analysts are busy projecting how far the rally could go. Using his Terminal Price on-chain indicator, Look Into Bitcoin creator Philip Swift said that Bitcoin could reach at least $110,000 in its next bullish cycle.
As Bitcoin continues to gain attention, several major altcoins have been charging higher. The widespread cryptocurrency rally raises hopes that an altcoin season may be around the corner.
If the bullish sentiment holds, altcoins may witness a rotation, where the high flyers face some profit booking and the laggards begin to move up. Let's take a look at the charts of the top 5 cryptocurrencies that may outperform in the short term.
Bitcoin price analysis
Bitcoin has remained above the ascending channel pattern for the past three days, indicating that the bulls are defending the breakout level.
The bulls will try to push the price above $38,000 and begin the march north towards $40,000. While the ascending moving averages indicate that the bulls are in control, the overbought levels on the RSI warn of a possible correction.
If the price slides back into the channel, it will suggest that the markets have rejected the higher levels. That could open the doors to a drop to the channel's support line, which is near the 20-day exponential moving average ($34,784).
The bears will have to sink the price below the channel to signal the start of a solid correction. The BTC/USDT pair may then fall to the $32,400 to $31,000 support zone.
The bulls are buying the dips to the 20-day EMA on the 4-hour chart, but have failed to resume the uptrend. This suggests a lack of demand at higher levels. The bears will try to take advantage of this opportunity and drag the price below the 20-EMA. If they do, the pair may fall to the 50-SMA.
On the contrary, if the price rises from the current level, it will suggest that the bulls have turned the channel breakout level into support. That will improve prospects for a rally above $38,000.
VeChain Price Analysis
VeChain (VET) completed a double bottom pattern after the bulls pushed the price above the overhead resistance at $0.021 on November 6.
The bulls have managed to fend off the bears' attempts to push the price back below $0.021. This suggests that buyers are trying to convert the $0.021 level into support. The bulls will next try to push the price above $0.023 and resume the upward movement. If they do, the VET/USDT pair could rally to the pattern target of $0.028.
On the contrary, if the price fails to overcome the resistance of $0.023, the probability of a decline to the 20-day EMA ($0.020) increases. A break and close below this support will suggest that the bears are back in the game. Then, the pair may fall to the 50-day SMA ($0.018).
The pair has been consolidating above the $0.021 breakout level for some time. The 20 EMA is flattening and the RSI is near the midpoint, indicating a balance between supply and demand.
This balance will tilt in favor of the buyers if they push the price above $0.023. That could start the next leg of the uptrend. On the other hand, if the price declines and falls below $0.021, it will indicate that the markets have rejected the higher levels. That could start a decline to $0.020.
Immutable price analysis
Immutable (IMX) has risen sharply in recent days, indicating that the bulls are attempting a comeback.
The recovery is expected to face formidable resistance at $1.30. If the price does not give up much ground from this level, the prospects of a break above the overhead resistance will increase. The IMX/USDT pair could then start a rally to $1.59.
The overbought level of the RSI warns of a possible correction or consolidation in the short term. If the price falls sharply from the current level or $1.30, it will indicate that the bulls are rushing towards the exit. That can push the price down to the 20-day EMA ($0.84).
The pair is gradually moving towards the overhead resistance of $1.30. The ascending moving averages indicate that the bulls remain in control, but the negative divergence on the RSI suggests that the bullish momentum is weakening.
Sellers may mount a vigorous defense at $1.30, but if the price remains above the moving averages during the pullback, it will improve prospects for a rally above the overhead hurdle. Alternatively, if the price declines sharply and slides below the 50 SMA, it will signal the beginning of a retracement to $0.80.
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Chart price analysis.
The graph (GRT) has corrected after a strong bullish move, but a positive sign is that the bulls have managed to keep the price above the 20-day EMA ($0.12).
The GRT/USDT pair has been trying to resume the bullish movement, but the bears are posing a strong challenge at $0.14. The ascending moving averages and the RSI in positive territory indicate that the path of least resistance is to the upside.
If the bulls clear the $0.16 hurdle, the pair may resume its uptrend. Thereafter, the pair could rise to $0.21. Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will indicate that the bullish movement has ended.
The pair found support at the 50 SMA on the 4-hour chart, but the bears are trying to stop the recovery near $0.14. If buyers break through this resistance, the pair could retest the $0.16 barrier. This level may once again witness a tough battle between bulls and bears.
On the downside, the 50-SMA remains the key level to watch. If this level gives way, the pair could fall to the strong support at $0.12. This level is likely to attract buying from the bulls.
Algorand Price Analysis
Algorando (SOMETHING) is forming a rounded bottom pattern, which will complete with a breakout and close above the overhead resistance at $0.14.
The ascending moving averages and the RSI in the overbought zone indicate that the bulls have the upper hand. If buyers sustain the price above $0.14, it will signal the start of a new bullish move. The pattern target of the reversal setup is $0.20. If this level is scaled, the bullish movement may reach $0.24.
Alternatively, if the price drops sharply from $0.14, it will suggest that the bears continue to defend the level vigorously. The ALGO/USDT pair could fall to the 20-day EMA ($0.12).
The bulls are buying the dip in the moving averages, indicating that sentiment is turning positive. The real test for the bulls lies at $0.14. If they push and sustain the price above this level, the pair is likely to gain momentum.
On the downside, the moving averages remain the key level to watch. A break below the 20 EMA could take the price to the 50 SMA. If this level is broken, the pair may start a correction to $0.10.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
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