In recent days, the cryptocurrency market has experienced a significant upswing, with altcoins following the lead of Bitcoin (BTC) in what some experts are dubbing the most significant bull market in cryptocurrency history. Yet, despite this optimism, seasoned cryptocurrency traders advise caution, suggesting that the current surge may face a temporary setback before potentially reaching even greater heights.
Spotlight on US-Based Altcoin Projects
Over the past week, several US-based altcoin projects, including Ripple’s XRP, IOHK’s Cardano (ADA), and Algorand (ALGO), have captured the attention of investors. Ripple’s XRP, for instance, saw a remarkable increase of over 83% within a span of seven days, surpassing the $1 threshold and setting its sights on the $8 mark.
Potential Resistance Ahead for the Bull Rally
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CrypNuevo, a prominent analyst, has raised concerns about the sustainability of the current bullish trend, predicting a potential “shallow pullback” in the near future. On November 14, the analyst highlighted the psychological thresholds of Bitcoin and the Bitcoin Dominance Index (BTC.D) on TradingView as key indicators to watch.
The Role of the S&P 500 Psychological Level
Furthermore, the S&P 500’s psychological level of 6,000 may also influence this scenario, suggesting a long-overdue market correction that could temporarily temper the crypto market’s exuberance.
Bitcoin (BTC) Price Forecast
The analysis began with a Bitcoin price forecast, envisioning an initial upward movement followed by a pullback to the $83,000 level. CrypNuevo stated, “This is not necessarily what I believe will happen, but it would provide numerous trading triggers.” The expert anticipates a potential surge to the $95,000-$96,000 range, offering a shorting opportunity against retail investors and expecting Bitcoin to achieve the eagerly anticipated $100,000 psychological milestone. This area may serve as a bull trap, generating liquidity for downward movements through long liquidations. Nonetheless, once market makers complete the retracement, a rebound could occur.
Altcoins: A Brief Decline Before Soaring Higher
Intriguingly, CrypNuevo has been forecasting an imminent altseason for some time, closely monitoring the BTC.D index. This projection remains relevant as Bitcoin’s dominance remains within CrypNuevo’s critical range of 60% to 62%. Should Bitcoin perform as outlined, altcoins are likely to follow suit with a “shallow pullback.” This phase is anticipated to present a “remarkable opportunity,” as the awaited altseason finally takes off post this brief correction.
CrypNuevo stated, “We could witness altcoins continuing to decline—but at this rate, a shallow pullback rather than a deep one—offering a tremendous opportunity before propelling them much higher.”
It’s crucial to acknowledge that even seasoned traders and respected analysts like CrypNuevo can make inaccurate predictions. These analyses do not guarantee specific market behavior; instead, they provide valuable insights for traders and investors to incorporate into their own research.
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