Bitcoin AND Ethereum Daily Price Forecast (11/11/20) — Bearish Reversal Forming?
Note: We’re trying a combined format instead of posting two separate forecasts. Let us know in the comments which you prefer!
Bitcoin Forecast.
Bitcoin pulled back a bit on Tuesday, not moving a ton in what was a pretty quiet day. Bitcoin did form a small dragonfly doji, indicating a slight pullback that was bought, however I think given the preceding price action that it is more of a result of buyers trying to fend off increased selling which appears to be mounting.
(November 10, 2020 8:00 PM EST)
Outlook: Bitcoin didn’t do much on Tuesday, pulling back a bit before turning around, settling the day just about even to form a small dragonfly doji candle. I would say it is 51% bullish, but if you zoom out and look at the price action it’s following, it shows Bitcoin is probably forming a topping pattern and is now starting to sell off a bit to consolidate and digest the gains. I don’t think there’s a ton of downside here, but a pullback is probably healthy and sets us up for another leg higher. $20,000 is coming, and it’s not a matter of ‘if,’ it’s a matter of ‘when.’ I’m not a seller, even on overbought rallies on short-term charts; this market can just rip your face off. Remember “markets can stay irrational longer than you can stay solvent.” Ride the trend and you’ll be happy you did.
Support: Look for support between $13,000 — $14,000. Below that, added support around $12,000, $11,000 and ultimately $10,000. The lower Bitcoin goes, the higher the chance of a violent bounce. I don’t anticipate very deep retracements here; in fact I’ll be looking to DCA in any and all pullbacks. Dips are buying opportunities.
Resistance: Bitcoin is showing resistance around $16,000, although I don’t think it’s significant selling or an important price level. Above that, $20,000, and then the fun begins.
Ethereum Forecast.
Ethereum rallied a bit again on Tuesday, having a mostly quiet day but ultimately gaining a few dollars to print a positive candle, closing a hair above the $450 level. Ethereum’s chart is more bullish than Bitcoin’s right now, as it may be about to replay Bitcoin’s recent rally to yearly highs.
Outlook: Ethereum rallied a bit on Tuesday, closing above Thursday’s high mere cents above the $450 level. What this tells me is that ETH was NOT rejected by the $450 level, and by closing above it on the daily chart shows the buyers are in control, if only just a little. ETH is printing higher highs and higher lows across this chart, which is extremely bullish. Frankly, this chart points to another bullish breakout, possibly one similar to that of the late July-early August rally which set a new yearly high. As long as Bitcoin doesn’t crash and drag down alts with it, I think ETH is strongly positioned to enjoy an impulsive rally from here. If ETH pulls back or is otherwise collateral damage from Bitcoin’s every waking move, look for a pullback to the $400 level, which has yet to be tested as new higher support. I don’t see much downside from here, especially with the rising EMA’s, ascending channel, defined uptrend, and higher lows/higher highs. ETH is going higher — maybe not tomorrow, but over the next few months and probably years, most probably.
Support: Look for support at $400, which is a major inflection level for ETH and former resistance, so it should now act as new support. Below that, the 50 Day EMA at $378, then $350, then the 200 Day EMA which is trading around the round psychological point of $300.
Resistance: Look for an impulsive move above $450, then $500, which could be stronger resistance. Short-medium term, I would be shocked if ETH doesn’t reach and/or break above $500, and with gusto.
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