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16:11 08.11.2019
2019-11-08
Svetlana Tereshenok (Neironix)
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The Results of the Week: Bitcoin Consolidation amid Altcoins Growth

The Neironix analytics department conducted a study of the cryptocurrency market and summed up the results of the outgoing week.

Over the past week (November 2 - November 8), the Bitcoin chart continued to consolidate, and its price has not changed much, increasing by only 0.88%. The capitalization of the leading cryptocurrency also remained virtually unchanged this week: an increase was only by $2 billion, and now its level stands at $166 billion. Meanwhile the trading volume fell 18% from $26 billion to $22 billion. The dominance also decreased slightly - from 67.5% at the end of last week to 66.8% at the end of the current one.

Active movements in the Bitcoin market we did not observe this week. The price went flat in the range of $9,600 - $9,100. Moreover, a decrease in volatility is observed day by day, the average value of which is $250 per day, which is a very low indicator for such a volatile asset as bitcoin.

The price of bitcoin is moving under the downtrend, increasing the frequency of testing in the last week. But the strength of buyers is not enough for a significant jump up and the breakdown of this line.

Now we can observe that a healthy support level of $9,200 has formed on the chart. This zone falls precisely at the level of 0.618 Fibonacci. Given this situation, we can say that a breakdown of this level may begin a new downtrend.

The next significant resistance level is in the $8,800 zone. A week earlier, sellers already made several attempts to take this level immediately, but they could not do it. If the price drops below this mark, then it is likely that we will see a sharp jump down to the levels of $7,800 - $8,000.

Technical indicators at the moment do not give a clear idea of ​​the subsequent movement, but there is little positive in them.

The relative strength index (RSI) continues to decline to the 50% zone, where the full balance of power locates between sellers and buyers. But it is worth saying that the pronounced descending structure on the indicator bitcoin avoided after such a steady growth on October 25.

Stochastic for a long time indicated the continuation of consolidation, but on the last day of the week turned sharply down and reached 52%. Actions in this zone should show whether there will be a new rise or fall. But the general structure of the indicator is downward both on the daily and hourly timeframes.

On the MACD indicator, the structure is seen to be entirely downward. And the situation to turn around and take a new local maximum looks an unlikely event from history because this situation was observed only once 3 in June 2017.

The big picture is that most traders and investors have decided to take a wait-and-see attitude because it is not yet clear which way the chart will go. However, our analytical department considers the decline more likely at this stage, judging by the many indirect factors, not only on the chart but on the news background.

This week, China was still the main newsmaker, as there was a lot of news from this country.

At the beginning of the week at a conference held in Singapore, a representative of the Chinese government announced that they would review as a decision to ban mining activities. It was because of the speech of Xi Jinping, in which he set the task of making China a leader in the field of the blockchain industry. Therefore, the government does not want to lose the companies, which are the largest in the area of mining.

The day after that, it became known that the mining giant Bitmain was going to conduct its IPO. But along with this, the company management has outlined problems. So, Cihan Wu, one of the founders of Bitmain, single-handedly expelled another founder - Mikri Jean. However, the struggle between them does not stop, and the dismissed director is going to return his post using law methods.

Another important event for the crypto industry was the situation with Stellar. Recall that the company destroyed 50 billion XLM coins, without warning anyone and without consulting with the public. However, the proportion of burnt coins was disproportionate to the sectors of use. Because of this, the stellar team increased the share of coins in their wallets from 17% to 25%. The whole community criticized Stellar, including Charlie Lee (creator of Litecoin), who accused the company of manipulating the course.

How was the week for coins from the Top-10

The consolidation of bitcoin allowed most of the Top-10 coins to increase in price to both the dollar and bitcoin. But the average rate of price change for these assets is several times less than last week: 2.7% versus 15%. If you do not take into account the stablecoin Tether, then the only coin that fell in price was XRP.

The growth leaders this time were Stellar (8.38%) and EOS (7.46%). As we wrote above, the Stellar growth was artificial and was associated with a massive burning of coins. As a result, the XLM grew by 27% during the day. But at the end of the week, this indicator fell and fell below 10%. The growth of EOS is primarily due to the airdrop, which launched the Eidos project on its platform. Thanks to this, EOS was able to overtake Binance Coin by capitalization and reach 7th place.

The growth leaders this time were Stellar (8.38%) and EOS (7.46%). As we wrote above, the Stellar growth was artificial and was associated with a massive burning of coins. As a result, the XLM grew by 27% during the day. But at the end of the week, this indicator fell and fell below 10%. The growth of EOS is primarily due to the airdrop, which launched the Eidos project on its platform. Thanks to this, EOS was able to overtake Binance Coin by capitalization and reach 7th place.

BNB has grown little, although it became known this week that Binance provided an opportunity to replenish deposits through Russian rubles and Ukrainian hryvnia. Thus, a trend is visible during which Binance is going to conquer eastern Europe and neighboring Asia.

Bitcoin dominance decreased by 0.5%, while the remaining coins from the Top 10 practically did not change their indicators. But the donkey altcoin market significantly added: from 9.9% to 10.4%.

How was the week for coins from the Top-100

The week turned out to be favorable for coins from the Top-100 because 75 coins showed a positive trend. The average rate of price change was + 7.2%, which is lower than last week (24%), but higher than the average of the week before last (4%).

The transition of bitcoin to the flat zone has allowed many altcoins to show good growth. A lot of coins this week were in the Top-100, which also indicates the activity of the projects despite dynamic market changes. Bitcoin returned to its past trend when it continued to lose its dominance, while altcoins gained strength.

But it must be remembered that altcoins are still very dependent on the movements of bitcoin. Even as a result of a small drop in the leading cryptocurrency, the remaining coins begin to lose even more in value.

Growth leaders

Looking at the growth leaders, it becomes clear that this week, the market provided excellent opportunities for earning. So, the average growth rate among the leaders was 59%, which is a very high value. Moreover, VeChain and Tezos have a capitalization of hundreds of millions of dollars, so this growth is substantial for them.

This week, DxChain was the leader in growth, the price of which almost doubled - by 94%. It happened due to the network’s launch soon, which is due in November, as a result of which the swap will transfer all tokens from the Ethereum platform to its DxChain platform. Besides, the team holds a contest during which it raffles DxChain (DX) tokens for the correct answers to their questions. These reasons became the prerequisites for the growth of the DxChain token, which was able to enter the Top-100 this week and take 77th place.

In second place with a small margin in growth is ILCoin coins. In just three days, its cost increased by two times. The reason was the team message, which spoke about the temporary freezing of the input/output of their coins on exchanges. They did it for more smoothly and painlessly switch to their new platform, which will allow you to process thousands of transactions. Besides, the main feature was the news about the block, the size of which will be 5 gigabytes!

We also see that Tezos, one of the Top-20 most capitalized coins in the world, increased its value by 33%. It is because the American cryptocurrency exchange Coinbase began to support the staking of XTZ coins, which caused such a strong and positive reaction from the community.

Fall leaders

The fall leaders, this time, lost an average of 10.7% per coin. This indicator decreased compared to the previous week when it was 13%. On the whole, we managed to avoid large drops, because the leader’s fall of 15% is considered an average.

ABBC coin has lost 15% of its value over the past week. It is due to the fraudulent activity of another group of persons who impersonate this company and collect information about users of the ABBC application. Although the project continues to develop and open up new services actively, this news had the most substantial effect on the community, as a result of which we saw a fall.

The fall of KuCoin Shares is due to the team launched a contest in late October. During it, participants must buy and hold KCS tokens, and for this, they will be able to win KCS with a significant discount. Draws are held every day among all participants holding tokens on their deposit. Received tokens can be stored or sold immediately. Because of this, we see a situation in which traders chose the second option, which led to a decrease in asset price.

Crypto Industry at Google Trends

As you can see from the picture, the average value of references to the word “bitcoin” changed quite strongly - from 53 to 100. The maximum amount came at the time when Bitcoin showed a local maximum this week, and it is weekend mention decreased. For other key queries, substantial changes are still missing.

Conclusion

The total market capitalization this week has not changed and amounts to $245 billion. Trading volume fell just $5 billion to $78 billion at the time of writing. It suggests that the week was calm for the cryptocurrency market and bitcoin in particular.

Weak trading activity on bitcoin has allowed many altcoins to show growth. Some of them began to cover the falls that formed after September 23, when bitcoin fell by 20%.

The market calms down after high-profile news from China, and Bitcoin is entering a phase of consolidation. Such a long calm of the leading cryptocurrency is alarming because, in the past, it became a harbinger of a new substantial fall.

Market News continues to come mainly from China. It is due to a change in the vector to the blockchain industry and cryptocurrency. Many Chinese crypto projects began to grow and enter into strong partnerships with companies in the traditional sector. But now this news has practically no effect on the market.

Neironix does not forecast bitcoin. If you need fresh forecasts of the Bitcoin exchange rate to the ruble, contact the appropriate specialists.

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Comments
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Do you think China will ever become a leader in the field of the blockchain industry? I doubt that opportunity. I just hope they aren't going to separate from the common market, as they like to do it with all other things.
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