Weekly Market Analysis - November, 6th
Learn analysis from the weekly crypto market price action and where the market is headed next.
In this Analysis:
Bitcoin
Bitcoin this week has continued it’s bullish price movement, continuing to test the $21,500 area of resistance. Once again, it was rejected from around the $21,000-21,500 as that remains the key level to try and break.
Bitcoin began this week cooling off from the previous run from $19,000 to $21,000, and then ended the week strongly again progressing to a high of almost $21,500.
Bullish momentum in the markets, as discussed previously, can be attributed to the dollar performing poorly, dropping in value, indicating that investors are moving their money to markets such as Crypto. This had led to momentum continuing in the markets as other investors FOMO into positions.
Bitcoin’s market capitalization has continued it’s increase from $398 Billion to $407 Billion, a rise of 2% on the weekly timeframe.
$21,500 is the next key level to watch. If this price range is broken we could potentially see bullish momentum in the markets over the coming months with targets around $26,000 – $30,000. If the price is again strongly rejected from $21,500 we may see a dump to the $18,000 region and potentially all the way to new lows at around $14,000.
Ethereum
Almost identical to Bitcoin, Ethereum began the week slowly in a cooling off, followed by again testing resistance around $1,650.
Ethereum’s market capitalization has shown continuation increasing from $194 Billion to $198 Billion, equalling a 2% rise.
When you compare this to Bitcoin, the correlation is extremely apparent with both seeing a 2% rise on the weekly.
The key areas for Ethereum are $1,650 – $1,700 being the new area to break above and consolidate above for bullish confirmation. If it is rejected from $1,700 strongly again, then $1,500 and then $1,250 are the key levels to watch, which could even spark new lows of around $700.
What's Next?
Bullish perspective – @IncomeSharks
A bullish perspective from market analyst, @IncomeSharks, market analyst on Twitter with 344k followers, charts his view that Bitcoin will hit $32,000 before the end of 2023.
The chart depicted above quite clearly shows a double bottom formation on the weekly timeframe for Bitcoin. A double bottom formation is usually a strong sign of strength for an upwards move as strong support around $20,000 has been formed.
@IncomeSharks anticipates the ‘W’ pattern on the chart to be fulfilled by around the end of November and the beginning of December, to see prices rise to $32,000.
Bearish perspective – @CryptoCapo_
A bearish perspective from market analyst, @CryptoCapo_, a Twitter account with 575k followers, shows that the price target of $21,500 has finally been met, hinting we should now see a huge dump immediately in price.
@CryptoCapo_ shows that by November 14th, just over a week from now, the dump in price should be well under way. Now that $21,500 has been hit, price should swiftly fall to around $18,500 in the next few days in line with the chart.
Invalidations for this scenario are breaking and consolidating above $21,500 and also $23,000.
@CryptoCapo_ has been anticipating this move for a very long time, and it seems the penultimate moment is beginning to arrive.
Other Altcoins
For other altcoins (excluding Bitcoin and Ethereum) during this week we saw the market capitalization have another really strong weekly performance, rising from $382 Billion to $401 Billion, equal to a 5% increase.
This signals that Altcoins are where the money is flowing currently, with only 2% rises on Bitcoin and Ethereum in comparison.
Below is a flow chart for the crypto money flow cycle while markets pump:
(Rektcapital)
This flow cycle shows the typical movements of money in the crypto markets. Over the past two weeks we have seen Ethereum, a large cap, firstly outperforming the market, whilst this week we are seeing mid and low caps stealing the show, signalling that we could soon be nearing the end of this pump, with the market selling off to Bitcoin and then Fiat, or alternatively the flow cycle continues to loop around with Bitcoin again pumping.
The Top 100 Altcoin gainers over the past week were:
(CoinMarketCap).
Meanwhile the biggest losers were:
(CoinMarketCap)
Bitcoin Dominance
Bitcoin dominance has continued to fall while the market pumps. Bitcoin’s dominance has decreased from 40.7 to 40.5% in the last week.
This signals that investors are distributing their funds to altcoin, while looking to catch greater pumps and returns on investments while Bitcoin is being out-performed.
Important Indicators:
- If Bitcoin dominance rises while the Bitcoin price rises, that will signal a potential rally for Bitcoin, while alt’s perform poorly.
- Once we start to see this dominance drop, while the Bitcoin price also rises, that will be a sign that altcoins will start to out-perform Bitcoin.
Market Sentiment
‘Fear’ is still the current market sentiment, yet we have seen a great increase in investor sentiment, from last weeks score of 31, to this weeks score to 40 out of 100.
This sentiment comes because Bitcoin has continued to show bullish price action as it tests price resistance around $21,000 – $21,500. Additionally, many altcoins are seeing large pumps in price which leads to investor FOMO and re-entering markets.
When you compare the current score of 40, to the yearly Crypto Fear & Greed index, it no longer seems like such a good area to buy, so waiting for a retracement is preferred.
Important Indicators:
- High amount of ‘Fear’ is an indicator to buy
- High amount of ‘Greed’ in an indicator to sell
News
There have been several weekly news stories and on-goings in the world that have impacted the crypto market. The following are some of the key headlines:
CRYPTO MARKET PRICE ACTION
During the previous week we saw some insane pumps across the Crypto market, with Bitcoin, Ethereum and Altcoins all taking centre stage. This week, it has been another green week for the markets, with Bitcoin still surpassing $21,000, Ethereum hitting highs of $1,660 and Altcoins seeing some insane pumps in price.
ELON MUSK ANNOUNCES $8/MONTH TWITTER SUBSCRIPTION
Elon Musk’s acquisition of Twitter continues to spark headlines and interest among crypto investors as his plans for the social media platform, with possible future crypto integration, begin to take place. This week he has announced that Twitter will be charging an $8 a month fee to be a verified (blue tick certified) Twitter user.
FACEBOOK ANNOUNCEMENT CAUSES POLYGN MATIC TO SURGE IN PRICE
Meta, the parent company of Facebook, has this week announced that Polygon ($MATIC) will be utilised with their upcoming NFT creation tool kits among Instagram and Facebook.
The toolkits will allow Facebook and Instagram content creators to create their very own NFT collections through the platform, to then be sold through the platform. Polygon has been announced as one of the crypto companies which will help and facilitate these transactions through their network.
FOMC ANNOUNCES INTEREST RATES INCREASE BY 0.75% AGAIN
As many market analysts were anticipating, this week we saw another 75bps increase to the interest rates in the US, in a bid to control inflation.
The announcement came on November 2nd, which saw a very brief downturn in the markets, causing Bitcoin’s price to fall to $20,100 from $20,600.
Investment Advice
Now remains to be a bad time to enter the markets. This is because we are seeing Bitcoin testing for the second time a strong area of resistance at $21,500, which will take a lot of momentum or some breaking news to break.
An insight from @IncomeSharks suggests the next month of price action remains bullish, with a double bottom on the weekly Bitcoin chart, indicating that $32,000 is attainable with the next month or two. If the $21,500 area is broken with strength and consolidated above, then it may be in the best interests to re-enter the markets to try and ride out any pumps until the $32,000 area.
With @CryptoCapo_’s persistent bearish outlook on Bitcoin, the advice would patience and caution, with potential great opportunities to enter the markets arising over the coming weeks, if the price is to fall to $14,000 – $17,000.
As always, the long-term advice would be to find those altcoin gems that can make you life changing gains, and look to dollar-cost-average into long-term positions on them for the 2025 Bull Run, where we should see many huge returns on investments.
On the Cryptoreviewing.com website we provide top quality, comprehensive altcoin reviews to help you find the perfect investment, for those life-changing gains.
Not financial advice. Educational content only. Always do your own research.