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Bitcoin and  Ethereum Market Analysis – 17.11.2021

It’s been a challenging day for BTC as the price plunged to an intraday low of $58,500 but has since recovered to around $60,300, where it currently trades. Still, it’s down almost 8% in the past 24 hours, attempting to hold above the key psychologically level of $60K.This level is critical to keeping the uptrend intact in the short term.

The crypto enthusiasts see this as a simple correction if further decline could be limited in the days ahead. The big question is, could this be a worrying sign or an expected pullback? This is a potential sign of caution for the short term. However, it remains bullish for the medium and long-term, and we should consider this, a buying opportunity.

It’s very correct to say, we’re in a bullish market but we have to be very cautious here, as the bearish divergence of the on-bound volume(OBV) and the sloping RSI in negative zone (both in 4-hour & daily charts) is validating the bearish retest.

Majority of the altcoins from the top 50 posted red on a 24-hour scale. A bearish day saw altcoins indicator – Ethereum plunged to an early morning intraday low $$4,068.24 before making a move. There will be a quick recovery here, as Ethereum has spurred more bullish activity than BTC lately.

The BTC daily chart shows a 50-day MA being tested and the BTC/USD pair traded below the support line of the rising wedge pattern on Nov. 17. This is the first sign that bulls may be losing their grip.

This may be an ideal setup for trading at prior low and confluence with lower BB as the shallow bounce indicates a lack of urgency among the bulls to buy at current levels.

If the rebound sustains, the bulls will again try to resume the uptrend but they are likely to face stiff resistance between $62.5k and $64.8k. A breakout of this resistance zone will suggest that, the current fall was only a pullback to shake out the weak hands.

We have different possibilities to mentally prepare ourselves of any possible outcome. I still give it to the bulls.

Pic.1: a 50-day MA being tested and the BTC/USD pair traded below the support line of the rising wedge pattern.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

The BTC weekly chart shows an outside red bar indicating that, the bulls ran into resistance. The red bar is a big force suggesting some indecisions and consolidations going on. There was a rejection at the key levels with the long red candle crossing the EMA 8. In that regard, the critical indicator to watch is the weekly EMA 8 which should hold Bitcoin’s price from further decline.

As it is, it remains important for the price to push back above the key level of the initial ATH at $64.8k to validate the uptrend. A breakout of this key level-$64.8k, will reposition the bulls for the next leg of the up-move.

Pic.2: Outside red bar indicating that, the bulls ran into resistance. Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum
Ethereum broke below the ascending channel on Nov. 16 and that was followed by further decline on Nov. 17, which pulled the price below the 20-day EMA ($4,439).

The long tail on Nov. 17’s candlestick suggests that bulls are attempting to defend the 50-day SMA ($4,033). The near MA 50 tag and the relative strength index (RSI) dropping in the negative zone, indicates that the bears are becoming a strong force.

This bearish view will be invalidated if the ETH/USD pair rises from the current level and breaks above the 20-day EMA.
The bulls are likely to bounce back in a short time from all indications here.

Pic.3: Ethereum broke below the ascending channel on Nov. 16 and that was followed by further decline on Nov. 17.
Source: bitcoin.live , ETHUSD Chart by TradingView

Top Takeaways
$BTC MA 50 area support 62.3k area resistance
$ETH $MA 50 support $4550 area resistance

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service