Bitcoin (BTC) has seen a significant rise of more than 120% year-to-date, indicating a notable improvement in crypto sentiment. This surge in buying has led to a substantial increase in the number of crypto wallets holding over $1 million in Bitcoin from 23,795 at the start of the year to 81,925 currently, according to BitInfoCharts data.
Bitcoin Faces Potential Headwinds
Despite this impressive rally, Bitcoin may encounter some challenges in the near future as investors assess upcoming macroeconomic data and events. The release of the Consumer Price Index data on Nov. 14, followed by the Producer Price Index data on Nov. 15, and the looming Nov. 17 deadline to avoid a partial United States government shutdown could lead to short-term volatility.
Market Correction Anticipated
A short-term pullback is considered healthy for the long-term trend of the market and could present a buying opportunity for traders. Analysts expect Bitcoin to rally in 2024 due to the anticipated approval of a spot Bitcoin exchange-traded fund.
S&P 500 Index Analysis
The S&P 500 Index (SPX) bounced back from the neckline on Nov. 9, suggesting that buyers are active even with minor dips. The 20-day exponential moving average (4,319) has started to turn up, and the relative strength index (RSI) is in the positive zone, indicating bullish control. However, bears are likely to fiercely defend against a break above the downtrend line.
U.S. Dollar Index Analysis
The U.S. Dollar Index (DXY) fell below the descending channel pattern on Nov. 3 but quickly recovered and reached the 20-day EMA (105.92). A sharp downturn from this level could indicate negative sentiment among traders.
Bitcoin Price Analysis
Bitcoin has been hovering near the channel’s resistance line for several days, but bulls have struggled to initiate another uptrend leg. If it re-enters inside the channel, it may signal a bull trap scenario.
Ether Price Analysis
Ether (ETH) rebounded off $2,000 on Nov. 12 and is poised for another attempt at overcoming $2,200. However, bears are likely to defend this level vigorously.
BNB Price Analysis
BNB (BNB) has been consolidating between $240 and $258 lately but may see an upward movement if it rebounds off the 20-day EMA ($238).
XRP Price Analysis
XRP (XRP) has remained below $0.67 but may see a breakout above this level soon if bulls maintain control.
Solana Price Analysis
Solana (SOL) faces resistance at $59 after rallying above $48 recently.
Cardano Price Analysis
Cardano (ADA) managed to breach $0.38 but struggles to maintain momentum above this level.
Dogecoin Price Analysis
Dogecoin (DOGE) rose above $0.08 but was unable to sustain higher levels and may see a pullback toward the 20-day EMA ($0.07).
Chainlink Price Analysis
Chainlink’s (LINK) recent rally was overextended as indicated by RSI levels and may experience a pullback soon.
Hot Take: Will Crypto Maintain its Bullish Momentum?
As Bitcoin continues its remarkable upward trajectory despite potential headwinds, it remains uncertain whether select altcoins will continue their bullish momentum or face corrective pressures in the near term.
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