Crypto Frontline

Weekly Crypto Analysis November 1-7, 2021

Weekly Crypto Analysis November 1-7, 2021
November 01
12:41 2021

BTCUSD (Coinbase)

BTCUSD technical analysis

Source: TradingView

Bitcoin had a choppier performance last week, unable to break higher, but also, weakening without breaking below the key $60k area. At the time of writing, the price action is pointing upwards, however, we still believe the token is trading inside a range between $60k and $67k.

Until a breakout on either side will occur, anything can happen. Even though Bitcoin is upbeat at the start of November, some volatility might await during the next few days, as a new FOMC meeting will take place. A rising USD is a headwind for BTC and if the global reserve currency will appreciate, Bitcoin would weaken below $60k.

In the opposite scenario, a weak USD and renewed buying appetite could push Bitcoin towards new all-time highs. Since it is uncharted terrain, psychological areas such as $70k should be watched. There is broad consensus that the price will reach $100k by the end of the year, which should make traders cautious because during complacency moments the market can take an unexpected turn.

ETHUSD (Kraken)

ETHUSD technical analysis

Source: TradingView

Things are a little different when it comes to Ether, which has managed to reach a new all-time high after briefly breaking above the May 12th high. However, buyers were unable to hold the gains and now the price is consolidating a little below that level.

The divergence on the RSI we’ve talked about last week is still in play, leading ETH vulnerable in the face of unexpected selling. To see the bearish scenario unfolding, Ether needs to break below the daily 20 EMA and back inside the triangle structure.

As long as it trades above that structure, it could continue higher, and $4.5k or $4.75k are the next resistance levels to watch. Although the momentum is favoring buyers, the upside is more contained, communicating a slight sense of hesitation. It might be the case that market participants wait to see new developments out of the FOMC meeting.

BNBUSD (Binance)

BNBUSD technical analysis

Source: TradingView

Binance Coin is gradually consolidating higher and now is threatening to break above the September highs, a move that might unlock further upside potential towards the $650 area. Buyers are squeezing the sellers towards $542 and it could result in a breakout higher during the next few days.

A break and hold above the line are needed to confirm the move higher can extend. If that won’t be the case, BNB could start to weaken towards the daily 200 SMA once again. However, even if that happens, there is strong support around there, given there is also an ascending trend line that has been in place since June.

BNB remains a barometer for the broader market and if it manages to break higher, that could be an early indication for sustained bullishness across altcoins in the weeks to come. The last three months of the years are favoring crypto from a seasonality point of view, but that should not be taken for granted. Valuations are overstretched in some cases, which is why corrections can occur at any point.

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