BTC, ETH and PAXG Price Analysis for November 20, 2023
On the night of November 20, BTC surged to a local high of $37,500. Here's an analysis of the market situation for Bitcoin (BTC), Ethereum (ETH), and Pax Gold (PAXG) as of Monday, November 20.
Bitcoin is now trading close to the resistance zone of $37,500-$38,000. This range is key for the BTC upward movement: if buyers can firmly establish above $38,000 with significant trading volume, the next target could be set at $39,000.
There is a noticeable decline in trading volumes, suggesting a potential decrease in buying momentum for BTC. This condition could lead to a deeper price correction and a sharp decline in the price of the asset soon.
In this scenario, BTC might test support at levels like $34,800, within the $33,400-$34,100 range, and the $31,600-$32,500 zone, down to about $30,700. Given these factors, initiating long or short positions is highly risky at the moment.
BTC chart on the H4 timeframe
Ethereum is currently trading within a broad sideways range between the support zone of $1,852-$1,915 and the resistance zone of $2,090-$2,141. Despite showing promising growth on November 10, Ethereum has not yet updated its yearly high.
Currently, Ethereum's primary objective is to maintain its upward momentum. Beyond the existing resistance zone, there's a seller's level at $2,200, and further up, the $2,300 mark stands as the next target for buyers.
A potential correction in Bitcoin's chart could similarly impact Ethereum's price. If a downturn occurs, Ethereum might test lower support levels at $1,790, $1,705, and in the range of $1,630 to $1,672. It should be noted that Ethereum's price corrections could be more severe compared to Bitcoin's. Nonetheless, Ethereum has a higher potential for an upward trend.
ETH chart on the H4 timeframe
Pax Gold (PAXG)
The last analysis of PAXG proved quite accurate, with the gold price managing to rebound from the buying zone at $1,890-$1,910. Presently, the asset is hovering near the resistance zone of $1,978-$2,000. Though buyers didn't succeed in breaking through this range on their initial try, the chances of doing so have markedly increased.
If the price of PAXG consolidates above the pivotal $2,000 mark, the asset could quickly escalate to the $2,020 level and might even surpass its annual high, reaching around $2,052. This development could occur within the next one and a half months.
A further correction in the PAXG chart might be considered if buyers are unable to swiftly penetrate the $2,000 level. In such a case, the asset could retest the $1,890-$1,910 zone and potentially set new local lows at $1,868 and within the $1,800-$1,835 range. The ongoing inverse correlation between BTC and gold prices suggests that holding both assets in an investment portfolio is an effective strategy for hedging and diversification. More on hedging can be found in a dedicated article.
PAXG chart on the Daily timeframe
This week's economic calendar is filled with events such as the update on the U.S. existing home sales (Tuesday, November 21); initial jobless claims and crude oil inventories (Wednesday, November 22); and the Services PMI (Friday, November 24). While none of these events are expected to fundamentally impact cryptocurrency exchange rates, they could contribute to short-term market volatility.
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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.
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.
This analysis was informed by the following educational materials and articles from GN Crypto: