In the past few years, Bitcoin price was somehow depended on Whales behavior. However, the game has been changed in the recent years. In fact, many institutional investors entered the market. Every day we hear in the news that a new institution joined the crypto market by investing in Bitcoin. For instance, today MicroStrategy announced that they bought 2,547 BTC with the price of $19,427. When a company buys Bitcoin on the highest price of the recent month, it shows that they expect a significant growth in Bitcoin price. However, the $20,000 resistance strongly prevents further price growth and the market shows the signs of price correction. In this article we are going to have a Weekly Analysis (28 Nov – 5 Dec). Let’s take a look at the charts.
Since last week, the buyers tried their best to move the price to $20,000 channel, but in all attempt, they faced sellers’ resistance. However, the buyers never frustrated and took long positions with every small price correction. This behavior formed a symmetrical triangle in the four-hours-time-frame. If the price could break the top line of the triangle and crossing the $20,000 resistance, the price may surge to $25,000.
There is still no sign of correction in price action. Even the candles are still in the ascending channel, however they could reach the lower half of the channel.
The only thing that is a little worrying, is the negative divergence of the RSI in the daily chart. For that reason, you should be aware of $18,500 support, as lowering the price below this level and then $18,000, the price will further drop to $16,500.
Weekly Analysis (28 Nov – 5 Dec); Ethereum
For Ethereum, the $620 resistance level has emerged as a strong resistance. As a result, we can consider it as a critical price level for Ethereum. However, candles are still above the medium-term uptrend and it could consider as a positive sign. If the price could break the $620 resistance, it may surge to $800. Otherwise, if the price experiences a correction, the $550 support point, which is at EMA-20 and ascending line, plays a significant role. The reason is that if the price declines below that level, it may fall to $480 or even lower.