Konstantin Anissimov, Executive Director at CEX.IO, shares his insights about the Bitcoin (BTC) and Ethereum (ETH) weekly price movements.
Bitcoin Generates 18.24% in Weekly Returns as Buying Pressure SkyrocketsThe flagship cryptocurrency has entered a new bullish cycle that seems to be supported by a massive influx of institutional capital into the cryptocurrency industry. As billionaires like Stanley Druckenmiller and Paul Tudor Jones shift towards Bitcoin as a hedge against a weakening US dollar, prices have done nothing but shoot up.The growing uncertainty around the global financial system’s stability appears to be one of the main drivers behind the recent uptrend, which is significantly bullish from a fundamental standpoint.Such positive developments were clearly visible during the week of November 16th. Bitcoin opened Monday’s trading session at $15,970, this being the lowest price point seen throughout the entire week. As the buying pressure behind it hit record highs, BTC entered a two-day rally that saw its price rise by more than 15%.By Wednesday, November 18th, the pioneer cryptocurrency had made a new yearly high of $18,500. Some market participants seem to have taken advantage of the price action to realize profits. The sudden spike in downward pressure led to a 6% correction that extended until the following day, but on the way down, it seems like many buy orders got triggered.As sidelined investors re-entered the market, Bitcoin began another leg up. The bellwether cryptocurrency was able to recover the losses incurred on Thursday, November 19th, and post further gains. BTC rose to a new yearly high of $18,900 and closed on Friday, November 20th, just a few dollars below this price point, providing investors a weekly return of 18.25%.Ethereum Enters New Uptrend while Speculation Mounts around ETH 2.0The highly anticipated Ethereum 2.0 upgrade is set to arrive on December 1st. Serenity is one of the last improvements on the network to increase its usability and scalability, bringing it closer to becoming the “world’s computer” as envisioned by its founder Vitalik Buterin. ETH 2.0 will mark the beginning of a new proof-of-stake era where investors will be rewarded for their contribution to the protocol.Indeed, those who hold 32 ETH or more will be able to collect staking rewards. This factor seems to have ignited a new spike in demand for Ether. As speculation mounts around the upcoming hard fork, Ethereum entered a new uptrend.The second-largest cryptocurrency by market capitalization kicked off the week of November 16th on the right foot, aiming for higher highs. It opened Monday’s trading session at $448.60 and by Wednesday, November 18th, it had already risen more than 10%. On this day, Ether was able to reach a high of $495.68, showing the rising demand for it.Although prices took a beating following the milestone as ETH dropped by nearly 8%, only a few weak hands were shaken out of the market. Buy orders continued to pile up, allowing Ethereum to recover quickly. By Friday, November 20th, the smart contracts giant was up 12.76% from Wednesday’s low of $456.50.Even though Ethereum was able to reach a new yearly high of $514.73 on this day, an important number of take profit orders were triggered around this price point. This increase in downward pressure led to a 0.84% correction towards the end of the week that saw Ether close at $510.43. Investors were able to gain 13.78% in profits due to the upward price action ETH experienced throughout the week.Technical Indicators Spell TroubleDespite the revived bullish sentiment behind the top two cryptocurrencies by market capitalization, multiple technical indicators suggest that a steep correction is underway. For instance, the Tom Demark (TD) Sequential indicator is currently on a green eight candlestick on these cryptocurrencies’ monthly charts. This technical pattern hints that a sell signal will develop throughout December in the form of a green nine candlestick.The bearish formation may lead to a one to four monthly candlesticks retracement before the uptrend resumes. Given the high levels of speculation in the crypto markets, it is very likely that volatility will remain rampant for the next following weeks before the correction materializes. If this is the case, Bitcoin could surge to new all-time highs while Ethereum may take aim at the $1,000 mark.next Share:
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