Yesterday, Bitcoin hit a new annual high at $37,978 but then dipped by 6% to $35,600. Here's an overview of the market situation for Bitcoin (BTC) and Polygon (MATIC) as of Friday, November 10.
Bitcoin (BTC)
BTC's latest ascent to its annual high was abruptly followed by a steep correction, plummeting 3,000 points in just an hour. This downturn culminated in a local low at $35,633, effectively wiping out the gains made on November 9.
Theoretically, a sideways range has been formed between the support level of $35,600 and the resistance level of $38,000. Within this bracket, Bitcoin's trading activity could range from a few days to several weeks. With the underlying bullish trend still in play, prospects lean towards further upward movement.
Investors are now eyeing the $38,400 and $38,800 levels as their next targets. However, if the market faces a more pronounced correction, and the $35,600 support level is breached, BTC could trigger a downward trend, potentially sliding down to $35,000 or even lower.
BTC chart on the M30 timeframe
Polygon (MATIC)
Yesterday's brief downturn in BTC was seen by investors as an attractive chance to buy altcoins at lower prices, with MATIC being one of them. A swift gathering of buyers at the local low of $0.760 spurred a resurgence in its upward trend.
Currently, the asset is oscillating between a support zone of $0.765-$0.790 and resistance levels ranging from $0.843 to $0.860. There's also an additional marker for buyers at $0.814. Aiming for continued growth and potentially setting new highs is the main focus. In the near term, the $0.905 level might be the next milestone for buyers.
However, a downtrend in BTC's chart could adversely affect altcoin prices. If this happens, MATIC could descend to the support levels at $0.734 and $0.694. It's also important to keep a close eye on Bitcoin's movements, as a more pronounced correction in BTC could make several altcoin support levels obsolete, possibly leading to a more significant drop compared to BTC.
MATIC chart on the M30 timeframe
Cryptocurrency markets typically experience minimal volatility over the weekend. This trend is expected to continue in the next few days, with Bitcoin likely trading sideways, while certain altcoins may showcase upward movements within their local trends.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
