Price analysis 11/2: BTC, ETH, XRP, BCH, LINK, BNB, LTC, DOT, BSV, ADA

China’s central bank governor Yi Gang has said that the nation’s digital yuan pilot projects have processed transactions worth over $299 million without any major problems. This suggests that China is much ahead of its competitors in developing and studying the central bank digital currency (CBDC).

However, the European Central Bank does not want to be left behind. European Central Bank President Christine Lagarde has invited comments from the public on whether they “would be happy to use a digital Euro just in the way they use a Euro coin or a Euro banknote.”

Another central bank that is trying to keep pace is the Reserve Bank of Australia. The central bank has partnered with banks, financial institutions and software companies to study the “implications of a CBDC for efficiency, risk management and innovation in wholesale financial market transactions,” said RBA Assistant Governor Michele Bullock.

The news of several nations contemplating the launch of a CBDC is a long-term positive but this news may not affect the short-term price action, which is dictated by market sentiment.

Let’s study the charts of the top-10 cryptocurrencies to find out whether the sentiment is to buy the dips or sell the rallies.

BTC/USD

Bitcoin’s (BTC) failure to rise and sustain above the $13,973.50 overhead resistance in the past few days could have attracted profit booking from some short-term traders and shorting by aggressive bears.

BTC/USD daily chart. Source: TradingView

However, the positive sign is that the bulls are not allowing the bears to have their way. The long tail on the candlestick suggests buying at lower levels.

If the BTC/USD pair rises from the current levels, then the bulls will make one more attempt to drive the price above the $13,973.50–$14,101.91 resistance zone. If they succeed, the uptrend could resume.

Although both the moving averages are sloping up, the bearish divergence on the relative strength index suggests that the momentum has weakened. A break below the 20-day exponential moving average ($12,819) will be the first sign of strength for the bears.

If the bears can capitalize on this strength and sink the pair below $12,460, then a deeper correction to the 50-day simple moving average ($11,567) is possible.

ETH/USD

The bulls had pushed Ether (ETH) above the downtrend line today but they could not sustain the higher levels. This suggests that the bears are selling on minor rallies. The bears have currently dragged the price back to the 20-day EMA ($386).

ETH/USD daily chart. Source: TradingView

A break and close below the 20-day EMA could drag the price to the uptrend line. The 50-day SMA ($371) is close to this support, hence, the bulls are likely to defend this level aggressively.

If the ETH/USD pair rebounds off the uptrend line, the bulls will once again try to propel the price above the downtrend line and the $405 overhead resistance. If they succeed, it will increase the possibility of a rally to $420 and then to $450.

Conversely, if the bears sink the price below the uptrend line, a fall to $360 and then to $333 is possible.

The flat moving averages and the RSI close to the midpoint suggest a balance between supply and demand. This suggests an equal opportunity for the bulls and the bears in tilting the advantage in their favor.

XRP/USD

The rebound from the $0.2295 support in XRP hit a barrier at the moving averages and the price has turned down from there. The bears are currently attempting to sink the altcoin below the $0.2295–$0.219712 support zone.

XRP/USD daily chart. Source: TradingView

If they succeed, the XRP/USD pair could start a new downtrend that may reach $0.19. The downsloping 20-day EMA ($0.24) and the RSI below 38 suggest that the bears are in control.

However, if the bulls can defend the support zone and push the pair back above the moving averages, it will suggest accumulation at lower levels. In such a case, the pair may remain range-bound for a few more days.

BCH/USD

Bitcoin Cash (BCH) has once again turned down from the $272 resistance and the bears are currently attempting to pull the price below the 20-day EMA ($258.58) and the immediate support at $253.14.

BCH/USD daily chart. Source: TradingView

If the bears manage to do that, the BCH/USD pair could drop to the next support at the 50-day SMA ($240.57).

Although the moving averages are still sloping up gradually, the RSI has broken down from a symmetrical triangle and has dropped close to the midpoint. This suggests that the bears are attempting to make a comeback.

This bearish view will be invalidated if the pair bounces off the 20-day EMA and breaks above the $272–$280 resistance zone.