In today's review, as always, we summarize the results of the outgoing week and analyze the overall price dynamics
BTC/USD
Early in the morning, last Sunday, Bitcoin consolidated sideways, near the upper border of the green support area. However, despite the day off, at lunchtime market activity began to increase, and trading volumes increased sharply. By evening, the price of BTC jumped by about $150 and tested the upper purple border of the sideways range in which the price has been continuously for two weeks.
This trading week began with a pullback from Sunday's high at 6475.00 USD, to the lower purple border of the two-week sideways range (6370.00 USD). After a re-test of the boundaries of the purple corridor, on Tuesday the price recovered to its middle line - the key level of 6427.16 USD. And on Wednesday night, during the Asian session, the price jumped another approximately $120, recording a weekly high at the highest level since the middle of last month, at 6544.00 USD. At this point, Bitcoin's capitalization reached $113 billion, and the total market capitalization amounted to $220 billion. Speaking about the growth of the cryptocurrency market at the end of last week, I would like to note one remarkable feature.
Two eight-hour charts of BTC and BCH combined in time show that this time the driver of market growth was not the flagship BTC/USD pair, as is usually the case when Bitcoin, like a locomotive, pulls altcoins behind it. Bitcoin Cash ran ahead of the locomotive. It was its growth, which began on November 2, that woke up the market and pulled prices up. And just this week, Bitcoin took the initiative and we saw synchronized growth. This temporary dominance of Bitcoin Cash is associated with the upcoming BCH hard fork on November 15th. The massive purchase of this altcoin woke up Bitcoin, which was sleeping in a flat, and market volatility increased.
In the second half of the week, we observed the rollback of the BTC price from the weekly high and determined the reversal levels for recovery. According to our forecasts, this level could be the upper limit of the green support area. On Saturday, the decline of the BTC/USD pair ended and price consolidation began in the range between the support area and the lower purple border of the two-week flat pattern.. We believe that this consolidation will continue today, because since Friday market activity has decreased significantly and trading volumes have decreased below average.
ETH/USD
The decline in the price of Ethereum called into question the “legitimacy” of its being in second place in the CoinMarketCap ranking, but Ethereum quickly regained its lost position, displacing Ripple to its usual position third place.
On Wednesday, the ETH price set a weekly maximum at 222.98 USD, and the rest of the time, until the end of the week, it rolled back to the moving average level EMA55. Having received support in the area of average prices, Ethereum began to consolidate in a narrow range, in which it will struggle until the end of the trading week.
Despite the fact that since the summer of this year, the Ethereum dominance index has fallen from 18% to 10%, some leading analysts are confident in the revival of the popularity of Ethereum and predict an increase in the rate to $500 per coin by the end of 2018.
XRP/USD
The rise in the price of Ripple on November 6 provided the asset with the second largest market share, at 10.13%. However, a pullback from the weekly high returned Ripple to its usual third place in the CoinMarketCap list. Having pulled back to the support of 0.490 USD, the XRP price began to consolidate, showing increasing lows. However, until the end of this week, the price will not be able to test the resistance of 0.513 USD if trading volumes remain at the same low level as yesterday.
* All price values are based on data from the BitStamp exchange
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