Bitcoin And Altcoins Open November In The Red: Will Bulls Show Up?

Key points:

Bitcoin will complete a double-top reversal pattern on a close below the $107,000 support.

Several altcoins have broken below their immediate support levels, clearing the path for further downside.

After October’s dismal performance, Bitcoin (BTC) has failed to change course. BTC has started the new month with a drop to the crucial support at $107,000, signaling that the bears are attempting to seize control.

The demand from institutional investors has slowed down, as indicated by the $799 million in net outflows from BTC exchange-traded funds last week, according to Farside Investors’ data.

Capriole Investments founder Charles Edwards said in a post on X that institutional buying had dipped below the daily mined supply for the first time in seven months, which was not a good sign.

Crypto market data daily view. Source: Coin360

A minor ray of hope for the bulls is that BTC has recorded an average gain of 42.34% in November, according to CoinGlass data. However, traders should not rely solely on this historical figure, as BTC has closed November in the red on four occasions since 2018. That suggests the markets could swing either way.

Could BTC extend its decline, pulling altcoins lower? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

S&P 500 Index price prediction

The S&P 500 Index (SPX) remains in an uptrend; however, the negative divergence on the relative strength index (RSI) suggests that the bullish momentum may be weakening.

SPX daily chart. Source: Cointelegraph/TradingView

Sellers will have to pull the price below the 50-day simple moving average (6,647) to signal strength. If they manage to do that, the index could start a deeper correction to 6,550 and then to 6,400.

Buyers are likely to have other plans. They will try to defend the 20-day exponential moving average (6,764) and push the index above 6,920. If that happens, the index could rally to the 7,000 level.