Weekly Results: Market Stabilization and Negative News About Crypto Exchanges

Over the past week (November 30 - December 6), the price of bitcoin has gone down by 0.9%. However, such a small change should not be misleading, because this week, we observed ups and downs almost every day.

Bitcoin's capitalization and trading volume remained unchanged at $135 billion and $18 billion, respectively. But the dominance of bitcoin has grown a bit, increasing from 66.5% to 67%. Compared to the previous week, these seven days went more smoothly, and we did not see substantial changes in market indicators.

In the early days, we saw a slight correction of the falling, when Bitcoin rose to the level of $7,800, and a foothold there. But after a day, we saw a systematic decrease to the level of $7,300, where the chart was most of the week.

A remarkable day was December 4, when we saw a quick green candlestick up to $7,750, and then a no less sharp dip to the level of $7,100. The nature of the movement of the chart indicates a possible price manipulation on this day. However, the very next day, we returned to the main support level of this week at $7,300.

The chart is still below the downtrend of October 25. It was moving near that one for the past week, but the buyers' strength is not enough to take this level. It is a signal for a possible fall. A healthy support level of $7,000 - $7,200 has formed below, breaking through which the course can go straight to $6,300.

The situation on the indicators begins to move into a calm direction. It is especially noticeable in the Bollinger bands. The chart stopped walking near the lower border of the channel, and begins to test the Bollinger average, but so far to no avail. Also, the Bollinger Bands is narrowing, indicating a new strong movement, which should occur soon.

For almost a week, Stochastic tested the 50% resistance level, and just yesterday, it was able to break through this level, and headed up. Now the nearest resistance zone is 80%.

But the RSI indicator does not show strength, and is in a declining trend. The nearest resistance is at 50%, after which it will be clear whether this indicator has changed its direction or not.

The overall picture on the Bitcoin chart is mixed. In general, bitcoin has moved into the consolidation zone, but is now in the intermediate phase, because for further growth or decline, confirmation of movement is needed, which is not available now. However, the global picture is downward, so we believe that the downward trend will continue next week, and perhaps we will see a new mighty fall.

This week's news did not have a substantial impact on the market, although many of them had a negative connotation.

So, at the beginning of the week, it became known that the CEO of the IDAX Global exchange, the custodian of the Exchange's cold wallet keys, disappeared without a trace. However, no money has yet been withdrawn from there. The remaining project team temporarily suspended the deposit and withdrawal of funds.

Also, a strange situation appeared with the Bittrex exchange. On Wednesday, December 4, 43,500 bitcoins were transferred from the exchange's wallet to an unknown one, which is about $320 million at the current exchange rate. Rumors about a new hack immediately spread on the net, but the Bittrex management did not give any information. The day after that, the exchange closed for unscheduled work, which also added fuel to the fire.

An unpleasant situation occurred with Vertcoin, which is one of the oldest cryptocurrencies. Hackers attacked 51% of its blockchain and were able to rewrite 603 blocks. But the project team quickly discovered the threat and eliminated it as a result of which the attackers lost about $4,000 by approximate estimates.

How was the week for coins from the Top-10

Most of the coins could not keep the bitcoin movements, and fell after it. The average price change index was -2.91%, which is even slightly higher than during the previous week. Last week, Bitcoin SV led the list of growth in the Top-10, and this week its rate completely leveled the past growth, falling by 9.8% and dropping below $100 per coin.

EOS became the leader in growth this week, at the same time becoming the only coin, except for USDT, which showed a positive trend for both the dollar and bitcoin. The growth is because the team announced the launch date for the Voice social platform, which is building on the EOSIO blockchain. Dan Larimer and Brendan Blumer, the founders of the project, said beta testing would begin on February 14, 2020.

The capitalization of many coins dropped this week, and the exciting fact is that only the current Top-10 coins have a capitalization of over $1 billion.

Bitcoin has become the only coin that has increased its market dominance. The rest either weaved at the previous rates or fell. It also clearly indicates that Bitcoin continues to be the main engine of the entire market, and it depends on all other coins are cleared. Top-10 cryptocurrencies have not been growing for several weeks, which is a bad sign for the entire cryptocurrency market.

How was the week for coins from the Top-100

If you look at the number of coins that showed negative dynamics, which accounted for more than 70% per week, it may seem that the market has fallen sharply. However, it`s not so bad, because the average rate of price change was only -0.81%, indicating a calm market.

A notable feature is a fact that more capitalized coins reacted to bitcoin movements, which have a capitalization of several hundred million dollars. The rest showed multidirectional dynamics, responding weakly to the actions of the first cryptocurrency. It is due to the release of a large number of positive news on coins. And this is a significant fact because we know that altcoins copy the movements of bitcoin. It suggests that fundamental analysis allows you to be more reliable than technical on the cryptocurrency market.

A lot of coins in the Top-100 showed the most robust growth, and now we will tell you about them.

Growth leaders

As you can see from the graph, the growth leaders have amazing results. The average value of the increase was 45.9%! And this situation has been observed for the second week. Many altcoins began to become alive, and showed super results before the new year, so now is a perfect time to trade in plus.

In the first place is HedgeTrade, which grew by 58% in a week. The central part of its growth occurred on the last day when its price jumped 36%. The reason for this was the launch of their trading platform for social trading. So far, only the beta version has been launched, but this is a massive breakthrough for the project, and the entire crypto industry as a whole.

In second place is Enjin Coin with an indicator of + 49.4%. Such a substantial increase in the price of a coin is associated with several huge events. First, the Enjin team decided to join Microsoft Azure and lead the development of games in partnership with this platform. And secondly, they launched a very convenient blockchain wallet that will support the most popular cryptocurrencies. This news is excellent and appreciated by the project community. As a result, in two days, we saw the stern growth of the coin.

Matic Network took 4th place this week, and it has been in the lead for the second week in a row. Over two weeks, its value has more than doubled, which allowed it to gain a foothold in 55th place on the list of the most capitalized cryptocurrencies.

Fall leaders

Despite the drop in 70% of altcoins, the leaders of the fall lost only 14 to 21%, and this is not a bad result. Besides, the average drop in leaders was 17% versus 22% last week.

The fallen leader was iExec RLC, which lost over 21% in a week. This fall is corrective after rapid growth, which began on October 25 and continued until mid-November. At this moment, the project had many updates and partnerships, which raised interest in the coin. Now there were no new announcements, and community activity fell, as a result of which we see a decrease in the price of iExec RLC.

In second place is the SOLVE project, with a drop of 17.7%. It is connected, first of all, with the artificial increase of public interest in the project through a post in the world`s most popular crypto media — CoinTelegraph. After that, many people became interested in the coin, and the volume of its purchases increased. However, in just one week, we saw how the interest was dying away, and as a result, the cost of Solve fell.

Crypto Industry at Google Trends

The popularity of cryptocurrency search queries has begun to increase. It is especially noticeable in the second half of the week. By the search request "bitcoin," an increase in popularity is also visible since, for the first time in 4 months, popularity did not fall below 50%. But the popularity of the remaining requests has increased almost two times compared to the previous week. Based on this, we can say that last week, interest in the crypto industry significantly increased.

Conclusion

Over the past week, total market capitalization has decreased by $ 4 billion, and currently stands at $ 200 billion. A similar situation occurred with the trading volume, which fell by 7% and amounted to $ 58 billion at the time of the report`s writing.

The market transited to the consolidation zone on the current week, even despite the mixed movements of bitcoin, which were more manipulative. In addition, Bitcoin itself also calms down after previous bursts and shows low volatility.

The positive factor is that individual altcoins show excellent growth results for the second week in a row. Even the movements of bitcoin affect them slightly. The overall situation with the further direction of the market remains uncertain.

Considering the multiple factors associated with the negative news background, Neironix expects further decline in bitcoin. Moreover, we expect this to happen in the coming week.