The review by Multibot: everything you need to know about the last crypto market trends
The last week was not so full of events for the cryptocurrency market as the previous one. However even there were enough important signals that formed the actual trends for the quotations movement for a new week.
In order to help crypto traders being always aware of the most important industry events, the Multibot team has prepared for you a compilation of the most important news review and the analysis of how they influenced the market.
Bitcoin: from the correction to new records
Last week, Bitcoin was not so active compared with the previous fantastic rally. So during the first half of the week, the quotations of the main digital currency moved away from their historical highs and remained in a correction state.
For example, on Monday Bitcoin showed a weighted average exchange rate less than $6 000. On weekends “digital gold” demonstrated more than two-week minimums: by Sunday morning the rate went down to $5 519.
We should admit that such a downhill after a rise to almost $8 000 definitely attracts attention and could shock some traders (especially newbies). However, as we have already written about in the previous review, the prices correlation after the rally is more than a natural pattern.
With the toolkit Multibot, any trader can use such fluctuations with maximum benefit for himself. Our platform functionality will help crypto traders determine the most promising market entry points (as it was with the technical peak of Bitcoin) and also to identify signals for the profitable position sale.
Bitcoin: reasons of correlation and prospects
Talking about the factors of Bitcoin dropping we should admit there were a few of them. First of all, let’s note failed SegWit2x hardfork.
In anticipation of the upcoming Bitcoin division, many traders began to actively transfer their assets to this currency with the intention of winning from the hardfork as much as possible. The greater number of Bitcoins in the wallet would mean more new digital coins after the division, plus there was an opportunity to win on the growth rate of Bitcoin itself.
However, the hardfork never happened, the new cryptocurrency did not take place, which caused disappointment among some traders who once again began redistributing their funds to other crypto assets. In addition, the fork-compatible nodes turned out to be “hanging” on the separation block, which reduced the scaling effect of Bitcoin itself.
The second reason for the significant correlation is more prosaic. Major market players decided to play on the dropping to increase their own profits due to speculative games on the rates.
The thing is, under the impression of the rapid Bitcoin growth many rushed to buy the currency at inflated prices when it was in an upward trend. As a result, after this major traders “crashed” the rate by just over 30% for purchasing and “cutting” dividends.
The situation developed through the next couple of days eloquently confirmed the last thesis. After a short-term rollback the Bitcoin price began to grow gradually but firmly over the week, getting closer to a new historical high.
As a result, on the night of October 17 Bitkoin got over $8 000, trading at the Bifinex exchange at $8 020. But that was not everything to it, as by the end of the week on Sunday evening, October 19, this line had been most definitely taken — average, inter-exchange Bitcoin rate was $8 061. Now this trend is gaining momentum again, accelerating the price of “digital gold” to new highs.
As we can see, Bitcoin has overcome the next psychological bar and it still has the opportunities for continuing growth. Actually, some particularly optimistic market participants began to raise the question of whether Bitcoin could reach its first five-digit mark of $10 000 or even $25 000 by the end of this year?
Of course, it is too early to put out there such figures. At the moment it is correct to say that if Bitcoin manages to gain a foothold in the price range of $8 000 and avoid a long-term price correlation, one can expect its growth up to $8 500 without significant resistance.
Man does not live by Bitcoin alone: what about the rest crypto market?
The past week for the whole market was moderately optimistic. Negative information background had a minimal impact on quotations of leading digital currencies. As a result, there was not observed any significant “slack” among the crypto assets with the highest capitalization.
At the same time Bitcoin Cash stood out against the general background, as it demonstrated a truly impressive leap. Against the twists and turns with SegWit2x and its own system modernization, Bitcoin Cash confidently settled in the price position +$1 000. Moreover, in some periods the currency was even aiming to overcome the $2 000 limit. However, it did not have enough “fuel” to gain a foothold on this level.
To compare. Only in early October Bitcoin Cash capitalization was $6.9 billion at a price of $400. Today the currency has increased its capitalization to $20 billion. Some of the mining pools either completely abandon Bitcoin in favor of Bitcoin Cash (as Bitcoin.com did) or they criticize “digital gold”. This suggests that Bitcoin Cash will not significantly weaken its positions in the medium term.
And if we are talking about “digital gold”, we should mention the fiasco of another Bitcoin project. On Wednesday, November 15, MinerTopia and BTG Mine’s mining pools announced they are stopping mining Bitcoin Gold. The pools representatives referred to the unprofitable mining, as incomes do not cover operating costs. Against this statement the Bitcoin Gold rate began to fall rapidly, so it is pretty much safe to say this asset will soon slip into the void.
The most important information trends and the results
And now let’s briefly go through the most important events which set the mood on the crypto market last week.
Among information trends one can be distinguished from others: traders won back information about the upcoming full involvement of Bitcoin in the stock market environment.
It was already known that the CME Group published the futures contracts specification for Bictoin, focused on launching them before the end of this year. But last week the news from Switzerland was added to this event. Local bank Vontobel claimed that along with Leonteq Securities AG intends to launch exchange trading in mini futures (symbiosis of classical futures and options) on Bitcoin already now. The SIX Swiss Exchange will be supporting these derivatives — the main Swiss stock market.
CME Group (which includes the NYMEX, CME, as well as CBOT) and the SIX Swiss Exchange are large stock players. From this follows that with them serious institutional investors can enter the crypto market, which will contribute to the investments growth in digital assets.
Among other news should be noted a number of events aimed at expanding the area of the cryptocurrency application. Coinbase launched a specialized storage service for institutional investors, which allows them to operate with crypto assets. The payment app Square has linked the program to its users, which allows them to deal with Bitcoin purchase and sale.
Also the first successful atomic swap between Litecoin and Bitcoin took place. For now it was a test transaction in the Lightning network, however in the future such technology will be able to make operations with even more decentralized and reliable cryptocurrencies.
The news that came to the market contributed to the formation of a generally favorable information background for the entire cryptocurrency segment. More and more convenient tools for working with digital currencies are appearing for the use of ordinary people and business, and the crypto-assets themselves are becoming more promising. Now it is already an integral part of the world economy.
Actually, Multibot pursues the same goals — creating the most effective functionality for convenient crypto trading. We are sure that in the near future each cryptotrader will have a toolkit for profitable automated trading without risks.