During our last market outlook, cryptocurrency prices had found a new footing after the massive rally on Friday October 25th. Since then, digital currency prices have been snaking in roughly the same positions after coins like BTC failed to break upper resistance on several occasions.
Also Read: China Removes Bitcoin Mining From List Of Unwanted Industries
Crypto prices hold basic support but cannot break upper resistance
At the time of writing, the market capitalization of all over 3,000 digital assets as of Thursday, November 7th is roughly $ 260 billion. Currently, the 15 coins with the highest market capitalizations have dropped a few percent between 1 and 5%. BTC is currently trading for $ 9,240 per coin and the market today has an overall valuation of $ 166 billion. The digital asset is down 1.44% in the past 24 hours but is up + 0.16% for the week.
There is around $ 22.7 billion in BTC trading worldwide today and 76% of those deals are paired against Tether (USDT). ETH trades for $ 187 per coin and is down 1.74% today, but ETH is up 2.3% in the past seven days. ETH has a market valuation of around $ 20.3 billion and a trading volume of around $ 9.1 billion worldwide. XRP was down more than 3% on Thursday and 1.11% for the week as each coin trades for $ 0.29. After all, the stablecoin tether (USDT) today holds the fifth largest market capitalization and captures around two-thirds of all trades within the crypto-economy.
Bitcoin Cash (BCH) market action
The fourth largest market valuation is held by Bitcoin Cash (BCH) on November 7th, and each BCH trades for $ 291 per coin. BCH is down 3.3% today but is up around 2.7% in the past seven days. There are roughly $ 2.28 billion in global BCH swaps, and the cryptocurrency has a market cap of around $ 5.28 billion. Yesterday, digital currency analyst John Isige noted that BCH prices have re-entered the $ 300 area, and after breaking that price point, the focus has shifted from Bitcoin Cash to $ 400.
“In the meantime, [BCH] traded at $ 304 after gaining 4% on the day. The Relative Strength Index (RSI) breaks 70 to show the momentum of bullish action has peaked, ”Isige wrote on Nov. 6. “The Moving Average Convergence Divergence (MACD) also focuses on bullish action.” The following day on November 7th shows that 62% of BCH trades are exchanged for Tether (USDT). This is followed by BTC (16.8%), USD (13.8%), ETH (3%) and KRW (2.6%).
There has been a lot of Fear, Uncertainty, and Doubt (FUD) around the whale issue over the past two weeks. First, there was a widely debunked research study of a single BTC whale that allegedly rigged the market in 2017. Then many others watched giant whale wallets and onchain movements showing massive BTC transactions. The latest Bitcoin whale discussion revolves around the Twitter account @whale_alert, who noticed a dormant BTC address at 80,000 BTC.
“This address alone – if this is actually a whale that holds its coins in hand for so long without doing anything to them – if he decides ‘Okay, let’s sell them’, that would completely destroy the market”, explained Whale Alert in a recent interview. “But it’s really hard to say anything about the status of this address: are the keys lost? Is this person still alive? … It’s just waiting to see if something happens to these addresses, ”added the Twitter account. Meanwhile, the Bitcoin Rich List (BTC holders of 1,000 or more) has grown 30% over the past year, according to data from cryptanalysis site Coin Metrics.
China, hugging blockchain, could be bearish or bullish
As Lubomir Tassev of news.Bitcoin.com reported on November 6th, the new edition of the Chinese guide to adapting the industrial structure has removed Bitcoin mining from the list of undesirable industries. Since the Communist Party General Secretary Xi Jinping praised the blockchain in a recent speech, digital currency markets have seen a massive boom and many people believe that the new outlook from China is optimistic. After localbitcoins.com posted strict KYC / AML guidelines, there was a big shift in Chinese residents switching from the Localbitcoins over-the-counter market to Paxful.
In addition, Chinese traders also use other channels such as Localethereum and local.Bitcoin.com. However, various experts believe that China will build a digital currency that will harm public cryptos like Bitcoin in the future. Goldbug and economist Peter Schiff believes that a gold-backed digital currency from China will be “bearish for Bitcoin”. Schiff tweeted his opinion on Nov. 1, saying:
According to Max Keizer, I’m an idiot because I think gold is better money than Bitcoin. He also claims that China is about to launch a gold-backed cryptocurrency. This is bullish for gold and bearish for bitcoin. A gold-backed crypto is much better than one that is not backed by anything.
“BTC is not a great medium of exchange,” says the Facebook crypto boss
On November 6, the head of Facebook’s cryptocurrency subsidiary Calibra, David Marcus, told attendees at the New York Times Dealbook Conference that BTC was an investment, not a currency.
Facebook’s crypto chief David Marcus says BTC is not a good medium of exchange.
“I don’t see Bitcoin as a currency – it’s actually not a great medium of exchange because of its volatility – I see it as digital gold.” Additionally, Marcus emphasized that BTC is essentially the traditional status quo investing environment as it is not viewed as a medium of exchange will. Marcus said a major reason Bitcoin was not regulated by existence was that it was not perceived as a medium of exchange. “It’s an asset class that stands out from the rest of the market – why do you feel threatened by it?”
Will the bullish markets continue or do we see a fake-out?
Overall, cryptocurrency fans and watchers are watching the market move, but it has been quiet lately in terms of big price moves. Some people believe that crypto markets will break the upper resistance and continue the bullish trend that began on October 25th.
I’m asked about a head fake on the six hour $ btcusd chart. The setup is almost perfect, all it takes is completion, a hard down bar. https://t.co/6GmgDiy3yz I’ll be talking about it for Swissquote this Friday in Milan. @Swissquote_it
– John Bollinger (@bbands) November 5, 2019
Others believe the current jump could be a fake, and after a few tries, BTC’s market value could hit the 7-8K price ranges again. The digital currency markets seem to be in a crucial position again as traders hope and pray that they have played their positions correctly.
Where do you see the cryptocurrency markets from here? Let us know what you think on this matter in the comments below.
Disclaimer: Pricing articles and market updates are for informational purposes only and should not be viewed as trading advice. Neither Bitcoin.com nor the author are responsible for any loss or gain as the ultimate decision to place a trade is made by the reader. Always remember that only those in possession of the private keys have control over the “money”. The cryptocurrency prices mentioned in this article were recorded at 9:15 a.m. EST.
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