Technical analysis

Are institutionals investing in Bitcoin right now?

Julien Moretto – 6 Nov 2019

Sideways action this week on Bitcoin, up by 2.07% and trading around €8,450 ($9,400$) on November 6. Consolidation continues but a medium-term bullish recovery is not yet confirmed. It is rather the altcoins that are performing this week, like Cosmos (ATOM) which gains 27% over seven days or Stellar Lumens (XLM) which gains 26%. Some data, which still need to be interpreted with caution, seems to indicate that professional investors are increasingly using Bitcoin derivatives like the CME Futures to open long positions on Bitcoin.

  • According to CoinMarketCap, capitalisation remains stable at $253 billion compared to $249 billion last week.
  • The dominance of Bitcoin decreased slightly, at 66.8%.
  • Augur (REP) realised one of his best gains in a long time with a 34% weekly increase.
  • The Stellar Foundation destroyed about 50% of the XLM tokens in circulation on November 4, 2019.

We invite you to discover our complete analysis in video (in french and dated from November 5):

Bitcoin (BTC)

Bitcoin chart

Coinhouse recommendation: 
Buy

  • This week, our recommendation is still to buy Bitcoin. Even if lateral consolidation and low volumes require to consider a possible bearish reversal. The price can consolidate to the €7,700 ($8,500) level which corresponds to the 50% correction of the strong increase of October 26.
  • The next level of resistance to consider is €8,950 ($9,900). If the price breaks it up, it will be a first buy signal.
  • There is a stronger resistance at the €10,000 ($11,100) level. Crossing this resistance with volumes would signal a medium-term bullish recovery.
  • The gap that had formed at the end of October on the CME Bitcoin futures was closed on the morning of November 5 when prices went at $8,500. However, Bitcoin did not trade below $9,000 on traditional exchanges.
  • If the price closes below €7,700 ($8,500) on the daily timeframe, it will be a sell signal.

Ethereum (ETH)

Ethereum chart

Coinhouse recommendation: 
Hold

  • Ethereum value increases again this weekm up by 5.04%, at €172 ($191) on November 6.
  • As long as the price remains below the intermediate resistance of €180 ($200), our recommendation will remain to hold or to wait.
  • A bullish break of $200 with volumes will be a signal to reinvest.
  • For a longer-term buy signal, it will be necessary to wait for the break up of the €210 ($235) pivot.
  • A clear bear break of €145 will be a sell signal.

Cosmos (ATOM)

Cosmos chart

Coinhouse recommendation: 
Buy

  • Cosmos made impressive gains this week, up by 27.36%, reaching €3.45 ($3.80), its highest level in 3 months.
  • Our recommendation this week is to buy. We broke up the important pivot of €3.20/3.25 ($3.50/3.60), confirming a mid-term bullish reversal on the daily timeframe.
  • A consolidation with the price going back to the €3.20 ($3.50) pivot would be a buy signal for those who have not bought yet.
  • A drop below the 50-day moving average, currently at the $2.88 level, will be a sell signal.

Top & flops of the week (top 50 marketcap)


Tops

1- Augur (REP) : +33,76%
2- Cosmos (ATOM) : +27,36%
3- Stellar Lumens (XLM) : +26,05%


Flops

1- Tezos (XTZ) : -2,86%
2- NEO : -1,07%
3- IOTA (MIOTA) : -0,46%

market recap 7d

Hot crypto news

  • 30% of Americans think that the US dollar is backed by gold
    We would like a similar survey among the French. The results would not necessarily be better.
    We should remember that currencies such as the euro or the dollar are based only on the trust in the issuing central bank.
    If the world of cryptos is only good for one thing, it will be at least to inform the public about what a currency is.
  • The Stellar Foundation burns 50% of the total XLM on the market
    The Stellar Foundation destroyed 55 billion XLM tokens on November 4, 2019, out of the 85 it held.
    The foundation officially renounces a free token distribution model to finance development projects.
    This decision caused a 20% increase in the price, following the mechanical reduction of the amount of XLM in circulation.
  • Legal issues continue for Bitfinex and Tether
    Crypto Capital is the company in which Bitfinex had invested more than $500 million.
    A second manager of Crypto Capital has just been indicted by an American court for fraud.
    The company’s CEO was arrested a few days ago by the Polish authorities.
    Suspicions of money laundering of Colombian cartel money are hanging over these leaders.
    All this could have implications for Bitfinex’s operations, despite the billion dollars raised during the LEO Token fundraising.
  • Microsoft launches a token creation platform
    Companies wishing to create their own token will be able to do so easily on the Azure platform.
    They will have the choice between Ethereum tokens and tokens on consortium blockchains such as Hyperledger or R3.
    Microsoft is thus seeking to establish itself as a facilitating actor in the development of blockchain applications, agnostic in relation to the underlying technologies.
  • Casperlabs announces a new version of Proof of Stake for Ethereum
    The company is working on a new transaction validation method for the network.
    The new method will consume very little electricity, while ensuring the same level of safety.
    The new software released is announced as robust and resistant to potential attacks.
    This development is positive for the entire Ethereum ecosystem.

Investors’ attention is drawn to the fact that the content of the articles does not constitute financial advice.
Investing in cryptoassets involves a risk of total capital loss.
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