Bitcoin, Ether, Major Altcoins – Weekly Market Update November 8, 2021
The total crypto market cap added $207 billion to its valuation for the last seven-days and now stands at $2,861 billion. The top 10 coins were all in green for the same time period with Polkadot (DOT) and Binance Coin (BNB) leading the group with 24.8 and 22.8 percent of price increase respectively. Bitcoin (BTC) is currently trading at $66,000 while ether (ETH) is at $4,728.
Bitcoin closed the trading day on Sunday, October 31 at $61,340 in its second consecutive day in red. The biggest cryptocurrency was struggling to move above the newly established short-term resistance in the $62,200 – $63,000 area since October 22, but the more bullish among the cryptocurrency traders were pointing to a potential consolidation period. Not only that but the coin was forming a bull flag formation on the daily chart.
It closed the extremely volatile seven-day period with less than 1 percent of increase. However, the BTC valuation grew by 40 percent for the month of October.
On Monday, the bears pushed the price all the way down to $59,560 during intraday, but the 21-day EMA provided the needed support, so the coin closed with a short red candle at $60,900.
The BTC/USDT pair found its bottom on Tuesday, November 2 when it started moving strongly in the upward direction. The price of BTC broke out of the mentioned bull flag pattern and added 3.9 percent by hitting $63,220. It finally managed to break above the resistance and bulls were now hoping for a proper consolidation in the beginning of the new month.
The mid-week session on Wednesday came with a flash crash. BTC dropped to the 21-day EMA near $60,000, losing 5 percent of its valuation, but quickly recovered eventually ending the day at $63,000 – right above the horizontal line.
On Thursday, November 4, the BTC/USDT pair made a significant pullback down to the zone around $61,500 after it was rejected at the meeting point of the horizontal and diagonal resistances. It lost 2.2 percent of its market cap.
The Friday trading was no different and bears continued to be in control of the short-term price action.
The weekend of November 6-7 started with a drop below the 21-day EMA on the daily chart as BTC hit the weekly support in the early hours of trading on Saturday. Bulls, however, quickly absorbed the sell orders and we saw a short green candle at the daily close.
On Sunday, the biggest cryptocurrency started to move in the upward direction. It reached $63,300 and successfully defended the weekly support, moving above the mentioned resistances.
What we are seeing on Monday is three-white soldiers trading pattern on the daily timeframe as BTC is rallying once again.
The Ethereum project token ETH registered a new all-time high last week by hitting $4,454 on Friday. Buyers, however, were not able to keep the momentum and the leading altcoin retraced down to $4,296 during the weekend, hitting a four-day low of $4,160.
Still, the ETH/USDT pair registered a 5 percent increase on a weekly basis, confirming the higher high formation on this timeframe. It also jumped by 43 percent for the thirty-day period.
The ether formed a small green candle on the daily chart on the first day of November. According to the latest on-chain statistics, the ETH token has become deflationary for the first time in history meaning more coins were burned than mined.
This, combined with the even more bullish technical indicators allowed it to continue the uptrend by adding another 6.2 percent on Tuesday, November 2. The move resulted in a new all-time high – $4,600.
The third day of the workweek came with a fresh new record as the biggest altcoin reached $4,651, but remained flat at the daily candle close.
On Thursday, November 4 some profit taking activities started to take place as traders were partially closing their leveraged longs. The price of ETH dropped to $4,523 after touching a daily low of $4,418.
It made one more step down on Friday by forming a short red candle to $4,467.
The first day of the weekend came with a sudden selloff in the morning part of the session. The ether fell as low as $4,326 but quickly recovered, eventually closing the day in green.
On Sunday, November 7 it climbed 2.2 percent up to end the week at $4,616.
The ETH token is currently trading at a new all-time high -$4,735.
- Avalanche (AVAX)
Avalanche lost 35 percent of its valuation during the last major pullback, but finally started moving in the upward direction last week.
The AVAX/USDT pair found support at the 21-day EMA and the lower boundary of the major uptrend corridor and initiated a strong rally. On November 3, the coin broke above both the diagonal and horizontal resistances ($70) on the daily chart and jumped 35 percent up to hit a new all-time high of $89 on Sunday, November 7.
It is quite possible that we see an AVAX coin valued at $100 as it will be fully in line with the Fibonacci extension level 161.80%. The potential 12 percent increase from the current levels will push Avalanche above Terra in terms of market cap. The total value locked across its ecosystem continues to grow at a double-digit rate which also supports the uptrend.
Altcoin of the Week
Our Altcoin of the week is Kadena (KDA). Yet another Ethereum competitor, Kadena is a less-known cryptocurrency project that introduces a new blockchain concept of running multiple chains in parallel on one network, to increase scalability. It is a proof of work platform that consists of a Layer 1 public chain protocol called Chainweb and a Layer 2 protocol called Kuro.
Traders and mid-term investors are still actively searching for the next AVAX or SOL and KDA is a good candidate. The coin increased by 197 percent for the last seven days entering CoinGecko’s Top 100 list.
Kadena hit a weekly high of $25.5 on Sunday, November 7. It is currently ranked at #65 with a total market cap of approximately $3 billion.
As of the time of writing, KDA is trading at $18.2