Konstantin Anissimov, Executive Director at CEX.IO, shares his insights about the Bitcoin (BTC) and Ethereum (ETH) weekly price movements.
Bitcoin Shrugs Off the FUD and Rises to New Yearly Highs
The first week of November took many cryptocurrency enthusiasts by surprise. As fears grew over the US presidential elections, investors were uncertain about how the results would impact the overall market structure. But BTC was able to shrug off all the fear, uncertainty, and doubt surrounding this event and rose to new yearly highs.
Bitcoin opened Monday’s trading session, November 2nd, at a high of $12,762, but suffered a 4% correction during the first 12 hours of the day. Prices dropped to mark the lowest point of the week at $13,220. Still, the bulls were able to step in, allowing BTC to recover throughout election day.
The flagship cryptocurrency surged over 6.5% to hit a high of $14,084 on Tuesday, November 3rd. What came next was a 3.71% retracement that served as an opportunity for sidelined investors to get back into the market. As Bitcoin showed resilience to Americans casting their ballots, the buying pressure behind it drastically increased.
The sudden spike in demand for BTC was significant enough to push it up more than 18% to make a new yearly high of $15,969 on Friday, November 6th. Given the importance of this milestone, some investors appear to have taken advantage of the upward price action to realize profits. The downward pressure saw Bitcoin retrace more than 2.3% to close Friday’s trading session at $15,603, providing investors a weekly return of 13.4%.
Ethereum Provides 15% in Weekly Returns as ETH 2.0 Moves Closer to Launch
Ethereum also kicked off the week on a negative posture as uncertainty mounted around who would be the next president of the United States of America. The smart contracts giant opened on Monday, November 2nd, at a high of $399.50 and immediately entered a multi-day downtrend. By election day, November 3rd, ETH had retraced 7.3 points to hit a weekly low of $370.4.
As buy orders began to pile up around this support level, prices reacted quickly. Ether surged more than 4% to close the day at a high of $386.75. Even though prices tumbled during the few hours of Wednesday’s trading session, November 4th, this day marked the beginning of a 25% bull rally that was seen throughout the rest of the week.
The second-largest cryptocurrency by market capitalization rose to $468,91, which is the highest price point since the market crash in early September. From a technical perspective, the upswing was correlated with the breakout of the x-axis of an ascending triangle where Ether had been contained for over the past two months. On the other hand, several fundamental factors, such as the launch of ETH 2.0’s Phase 0, also contributed to the impressive upward price action.
Regardless of the technical or fundamental forces that positively impacted Ethereum, it closed Friday, November 6th, trading at a high of $459.33. Investors were able to grasp a weekly return of nearly 15%.
The Cryptocurrency Market Moves Forward
Due to the upward price action that Bitcoin and Ethereum went through over the first week of November, it seems that these cryptocurrencies have entered a new bullish cycle. On-chain data shows that BTC poses little to no resistance ahead that might prevent it from moving closer to its all-time high of $20,000. And given the high correlation levels in the crypto markets, Ether will likely follow the pioneer cryptocurrency’s steps.
As long as Bitcoin stays above $14,000 and Ethereum above $400, these cryptocurrencies will likely continue trending upwards. Failing to do so may trigger a corrective period where BTC could retrace to $12,000 and ETH to $320. Regardless, the overall outlook currently favors the bulls.
Executive Director at CEX.IO. His area of responsibility includes customer relationships with institutional and VIP-clients, overseeing the creation of the company’s development strategy, new products, markets and partnerships. As a member of the board of directors, Konstantin is also responsible for corporate governance.