Bitcoin: Technical analysis for November 16, 2023

Hello from the crazy crew at Altcoin Wonderland!!! It’s Thursday, November 16, 2023, and time to look at what’s next for Bitcoin, which obviously moves the whole crypto market. What is Bitcoin’s next move? Will altcoins keep rising? Let’s take a look…

Bitcoin weekly chart

Bitcoin managed to reach almost 38K, essentially filling the entire monthly fair value gap that remained between 36k and 38k. On top of that, it has reached the middle of a huge range between 17.6k and 65.2k, with the mid zone between 38k and 42k. So the most likely scenarios here are that we push a bit further toward 40k–42k, and if Bitcoin fails to break through, that would logically mark the start of its correction, down to 31k if not lower, perhaps even to 28k.

On the RSI we have moved above 70 and hit overbought levels comparable to those of Bitcoin’s rally in August 2019, after the “bottom” of the 2018 bear market. Back then the RSI formed a double top; if that happens again now, it would mean a pump to 40k–42k in the coming weeks.

Bitcoin daily chart

On the daily chart, attention again turns to the RSI, which is overbought and has formed a bearish divergence (orange lines). This means Bitcoin is starting to show signs of weakness, unless positive news on a spot ETF approval comes out in the next few days and we rise quickly and strongly to 42k and above, invalidating the bearish divergence. As things look now, I still expect a price correction after we hit 40k.

What will altcoins do? If they break above THIS level, we’ll see even bigger pumps!

If we look at the weekly chart of the total altcoin market cap excluding Bitcoin, Ethereum and stablecoins, we see something interesting. Altcoins are at the top of the range they have been moving in for almost 2 years. IF we manage to break and hold $164 BILLION as support, the next resistance and stop will be near $261 BILLION. That means $100 BILLION would flow into altcoins: the coins that have shown strength so far will keep rising, but many other promising projects will move too! So get ready, pick your coins and seize the opportunity. Obviously, if we hit resistance at $164 billion and drop from there, we’ll see sizable corrections in altcoins.

That’s it from me. Keep going strong, folks, and be careful! Always use risk management, stop losses and proper position sizing. Happy trading! Thanks a lot!

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