Bitcoin (BTC)
After the first half of November this year, Due to the panic sale caused by the collapse of FTX, the third largest cryptocurrency exchange in the world, Bitcoin has stabilized in the last few days in the range between $16,000 and $17,000.
However, there are many indications that this is only a form of correction, after which the quotations of BTC could return to a downward path.
One must remember that the BTC exchange rate has been in a downward trend for over a year, and this trend has stayed the same at any time. Therefore, from a purely technical point of view, there is no reason to forecast a more significant rebound.
In addition, it is also worth noting that the observed in the first half of November this year the decline was extremely dynamic, which may indicate that it was an impulsive move, while the rebound observed for several days is exceptionally calm, which suggests that it is only a form of another correction.
Given all this, the bankruptcy of FTX has already been officially announced. As a result, its further negative impact on the cryptocurrency market may be limited; the scale of bankruptcies of subsequent companies associated with this exchange will be of crucial importance.
It is estimated that Sam Bankman-Fried, FTX and the Alameda Research fund could be linked to over 150 other entities in the industry. This also meant that many of them were on the verge of bankruptcy almost overnight.
So it is far too early to open the champagne and announce another bull market. In practice, there is still a high probability of further sale-off not only of BTC but also of the vast majority of cryptocurrency projects.
According to the popular opinion that "after every storm, the sun comes out", and just like in previous years, when after each of the previous bubble bursts, the cryptocurrency market returned to the path of growth, breaking new ATH; it can be expected that this time it will be similar, although probably we'll have to wait a little longer for that.
Several factors may account for this:
First, every topic, including every problem, sooner or later becomes commonplace, and the financial markets pass over it daily. This was the case with the collapse of Mt.Gox in 2014 (the largest cryptocurrency exchange in the world at that time) or QuadrigaCX in 2019 (the largest cryptocurrency exchange in Canada, about which Netflix even made a documentary).
Second, the Federal Reserve is nearing the end of its monetary policy tightening cycle, and while Fed interest rates are likely to remain high for most or even all of 2023, in 2024, the Fed is likely to embark on an easing cycle that, like in 2020, could contribute to the growth rally on risky assets such as stocks or cryptocurrencies.
Ethereum (ETH)
Ethereum's quotations fell between November 4 and 9 by over 36%, and then, driven by an extremely optimistic report on CPI inflation in the US, they rebounded by almost 26%, thus leading to a re-test of previously defeated support (now resistance).
This increase, however, lasted only one day and then from November 11th this year. The ETH rate fell again, returning to the USD 1100 region, where on November 22nd, there was a demand reaction again. Later increases, however, stopped near the local resistance of USD 1,220, where, in turn, there was already a slight supply reaction last weekend. If only this barrier is rejected, the rate of this cryptocurrency could fall again to the region of USD 1,100 or even further to USD 990.
Bitcoin Cash (BCH)
Bitcoin Cash fell by nearly 31% between November 5th and November 9th, falling to the lowest level since December 2018. Similarly to BTC and ETH, in reaction to the US CPI inflation report published on November 10th, it went up by over 22%.
It is worth noting that although the increase stopped for several days in the area of ​​the previously defeated support of USD 106, this resistance was finally overcome, and the BCH rate reached almost USD 120.
However, the downward trend observed for several days meant that we are now witnessing another test of support in the area of ​​106 USD. Therefore, there are many indications that we will observe some trend (up or down) in the near future, it will directly depend on the reaction (demand or supply) that will appear in the vicinity of the currently tested support, signalling its potential rejection will be defeated.
A break below this level could open the door for further declines below USD 90. At the same time, the emergence of greater demand pressure and a rebound from the currently tested zone could serve as an impulse for another increase towards USD 125.
Litecoin (LTC)
Litecoin's quotations collapsed between November 7 and 9 this year by more than 35 per cent. This sell-off stopped only in the area of ​​technical support in the area of USD 50, where on November 10th, there was quite an apparent demand pressure.
However, due to the subsequent appreciation, the LTC exchange rate increased by over 74 per cent, more than making up for earlier losses. It is worth noting that this increase led to overcoming the technical resistance levels of USD 64.50 and USD 73. It stopped only in the area of ​​the uptrend lines tested from June to September, where a supply reaction appeared a few days ago.
The ongoing declines since then led to a re-test of the previously broken $73 resistance. However, the LTC rate will drop below this barrier soon. In that case, we could expect its further depreciation towards USD 64.50 and measuring a 50% Fibonacci retracement from the previous upward move.
Polygon (MATIC)
After bouncing off the $1.30 technical resistance, the Polygon (MATIC) cryptocurrency fell more than 41% between November 5th and November 9th. Although on November 10th, this cryptocurrency made up for the vast majority of these losses, increasing by over 52%, we have been observing its decline again since November 11th.
It is noteworthy that the MATIC exchange rate recently fell below the local support of USD 0.87, which remains until today. If the declines continue, in the near future, we could expect technical support to be re-tested in the region of USD 0.74 or, even further, USD 0.61.
XRP
XRP fell between November 5th and November 9th by more than 38%. This sell-off led to breaking the horizontal support in the region of USD 0.42 and stopped only around the next significant level of USD 0.32, where on November 10th, there was an apparent demand reaction.
Since then, the XRP exchange rate has alternately fallen and increased, staying in the range of USD 0.32 to USD 0.42.
Therefore, taking into account its rebound from the upper limit of this range, observed last Saturday, we could expect another drop towards USD 0.32 in the coming days or possibly even to USD 0.30, where the next level of support is located.
EOS
Looking at the EOS quotes, we will notice that the exchange rate of this cryptocurrency has been in a horizontal trend between the support of USD 0.80 and the resistance of USD 1.00 for over two weeks.
Taking into account the supply reaction that appeared last weekend around the upper limit of this system, over the next few days, we could expect further declines towards its lower limit, i.e. to the support of USD 0.80.
