Another Volatile Week for Bitcoin and Cryptocurrencies
On Wednesday November 15th, cryptocurrencies saw a new all-time high market cap of over $217,100,000,000 USD. At the same time, the price of Bitcoin had recorded a 7.6% rise and hit $7,418 USD, just within a period of 24 hours. An amount that exceeds $850 million was exchanged in the main Bitcoin/US Dollar market. This, just like the previous week, came second after JPY’s 56% after managing 25% daily volume’s share.
An Approaching New High?
Now fast forward to 16th November 2017, there appears to be a new high approaching, and it seems Bitcoin may not be stopping anytime soon. Just a day after capturing the Fibonacci retracement level of 61.8%, Bitcoin, which is one of the leading global cryptocurrency by market capitalization, woke up new eight-day highs above $7,520 USD.
That happened on Thursday, November 16th. By the time this price report was being prepared, the exchange rate of Bitcoin/US Dollar was at $7,940 USD, which reflects a roughly 10% gain in just 24 hours. The overall cryptocurrency market cap is now at another all-time high of $227,694,188,254 USD. But just some few hours ago, the price of Bitcoin had dropped 29% after the controversial software upgrade dubbed SegWit2x was suspended by the developers.
Bitcoin Selloff Interrupted
The sell-off was however interrupted at around $5,500 USD by the fifty-day M.A (Moving Average) on November 12th. A rally that had been ongoing in the subsequent days did away with the possibility of a $5,000 USD levels drop.
By Wednesday, 15th, a move above $7,000 USD was recorded just at a time when it was least expected. This improved the odds of a continued rally to record highs above $7,800 USD. With the current price, it can be summarized that Bitcoin is just short of $312 to get back to its record of over $7,800 USD that was recorded on November 8th.
From the events that are currently going on in this market, it becomes evident that the investor community has begun to assess the effects of a serious rotation of money out of bonds and stocks and into Bitcoin. The announcement by CME Group about Bitcoin futures still remain unchanged, and if things go on as planned, then trading will commence as soon as December. This new offering will give institutional investors an opportunity to diversify into Bitcoin, which has grown to become a high yielding asset.
Perhaps more can be achieved if the equity markets do not respond positively to the Fed rate hike’s increased odds. Another thing that can be clearly be pinpointed from the price action analysis is that the tables might have turned in the bulls’ favor. Both the 5-day moving average and the 10-day moving analysis have bottomed out, possibly as a result of the $7,000 USD mark sharp rally. The Fibonacci hurdle also appears to have been swept behind by that 61.8%. As at now, Bitcoin seems more than ready to test new levels; the $8,000 USD levels.
However, there was also relative strength index that was witnessed on both the time frames of 1-hour and 4-hour, making it hard to rule out minor pullbacks. The possibility of the tide being turned back in the bears’ favor can only be realized if there is a $6,600 USD close below the increasing trendline support as well as sharp sell-off.
Bitcoin Cash Receives A Beating
On November 16th, Bitcoin Cash dipped to $1,000 USD, although the team might come up with a quick recovery on the cards, so there are already indications of a potential bottom. Bitcoin is currently changing hands at $1,007 USD, and the exchange rate of BCH/USD (Bitcoin Cash/US Dollar) has depreciated by almost 20% just within a span of 24 hours.
This movement of money out of Bitcoin and into the Bitcoin Cash began moments after the controversial SegWit2x software upgrade was suspended. This seems to push Bitcoin Cash to records highs around $2,500 USD just a few days ago. Bitcoin Cash, however, lost attitude giving the Bitcoin an opportunity to make a quick recovery from $5,500 USD.
It has been a good week for this world’s third-largest cryptocurrency as per the market capitalization, and more is still expected in the days to come.