Price Analysis, Nov. 2: Bitcoin, Ethereum, Litecoin
Several factors have caused a sharp increase in Bitcoin. First, it is due to the fact that cryptocurrency derivatives are expected to be issued soon.
The views and opinions expressed here are solely those of authors/contributors and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
* All the market data is provided by the HitBTC exchange.
Market Analysis 02.11.2017
The market is currently under stress. On the one hand, the Bitcoin rally has been accomplished. On the other hand, basically all the leading altcoins keep going down. Bitcoin domination has gone beyond 62 percent; this indicator was observed last time in April this year.
Several factors have caused a sharp increase in Bitcoin. First, it is due to the fact that cryptocurrency derivatives are expected to be issued soon. Secondly, it has been reported that China will lift its ban on cryptocurrency sales together with yuan, and two cryptocurrency stock exchanges, OKEx and Huobi Pro, have announced that they could launch this kind of trading in the nearest future.
A speculative factor is to be taken into consideration too: Bitcoin is growing as altcoins are going down and many players are shifting to the growing asset, which results in the continuous growth of Bitcoin. There are also those who were sure Bitcoin would drop and they must close out their short positions now.
- Bitcoin has reached a historic high of $7,200.
- Given the current situation, it is hard to forecast the future resistance levels. Is there any chance we can see $7,500 tomorrow? Why not?
- The possibility of a correction depends on the appetite of those who traded at $3,000 to $4,000. It is very likely they will fix their profit before Bitcoin’s upcoming SegWit2x hard fork, to be held on Nov. 15;
- The nearest support levels for BTC/USD are at $6,600 and $6,200. However, it is not recommended to open short positions.
- Ethereum price continues to go down, while the whole market, and especially the speculators, are giving all their attention to BTC/USD;
- The trading range of ETH/USD is at the $275 to $280 support levels. This drop was expected because prices didn’t even test the resistance level, which is still at $315;
- If the $275 level is breached, upward movement to the next support level of $250 is a possible scenario to hope for;
- Buyers may feel more optimistic if the price goes back to the $300 level.
- As far as LTC/USD is concerned, the scenario presented in our last week’s analysis has come true: it is now at the $52 resistance level after the test of $57 and a subsequent drop to $52;
- Litecoin has breached the lower side of the descending triangle. The following stop may be at $48, at which point the bulls are likely to attempt a recovery;
- Of greater importance is the $42 to $44 support range. These levels are good enough for purchases with short-term goals.