After a dazzling month of October which saw Bitcoin appreciate by 30%, the price of the leading cryptocurrency now seems to be in a consolidation phase. Nearly stable over the last seven days, Bitcoin is trading around €11,730 ($13,700) on November 4th. This week, the eyes of the observers will be more focused on the result of the US presidential elections, where a very close vote between Joe Biden and Donald Trump could create nervousness on the markets. In this context, we recommend more caution and patience in the cryptocurrency market until the situation is clarified, as high volatility could erupt at any time.
It is interesting to note that Bitcoin has clearly decoupled, not only from other asset classes such as stock markets, but also from altcoins. The share of Bitcoin’s market capitalization in relation to altcoins is constantly increasing, reaching highs in 2020. The king of the cryptoassets is therefore going it alone and has been performing much better than the other coins for the last two weeks. The tokens linked to decentralized finance continue to correct rather strongly. We will therefore try to position ourselves this week to buy back or strengthen positions in Bitcoin if the price returns to relevant price levels. Analysis.
- According to CoinGecko, market capitalization is down slightly to $400 billion from $413 billion last week.
- Bitcoin’s dominance continued to increase to 63.3%, up from 61.4% last week.
- The best performance in the top 50 is to be attributed to Celsius Network (CEL) with +9.4% over one week.
We invite you to discover our analysis in video (in french and dated November 3):
- Bitcoin’s price has been on an uptrend for almost 3 weeks now. The asset is still gaining 6% recently and is trading around €11,700 ($13,700) on November 4th. However, in view of this particular week, which brings together the uncertainties of the health crisis and the American elections, we will not be aggressive on the market. We are not buying more bitcoin at current price levels but are maintaining the positions we took previously.
- For those who have not yet taken profits, the current zone between €11,500 and €12,150 ($13,500 and $14,300) remains favourable to do so. We will switch back to buying if the price comes back between €10,280 and €10,600 ($12,170 and $12,500). If the strong uptrend continues, the price could hit the €13,650 ($16,000) level, where we will have to take partial profits again. The uptrend remains intact as long as the price stays above the €9,000 ($10,600) level.
- Ethereum (ETH) is experiencing more difficult days, losing 4.6% over a week to stand at €325 ($380) on November 4. It suffers from the current state of the market in which Bitcoin largely dominates and captures the majority of the gains, to the detriment of Altcoins. A market cycle that could last, all the more so as Bitcoin’s dominance is not showing signs of weakness for the time being. However, over the long term, the price zone between €281 and €316 ($330 and $390) remains interesting to buy. As long as the situation does not deteriorate, we buy in this zone. These purchases will be invalidated if the price falls below €281 ($330). If Ethereum also starts to take advantage of the rise, a new high for 2020 on its price is very likely, by going to join in particular the $700 zone.
Buy on signal
- Also a difficult week for Chainlink (LINK), down 11% to €8.80 ($10.40). But our recommendation will be quite similar to the one for Ethereum. Chainlink has recently corrected for its strong increase this summer. But in the very long term, this asset remains in an uptrend. The technical zone between $8.10 and $10.30 is a good place to buy or accumulate. We will therefore wait for the price to show signs of a bullish turnaround in this zone before moving on to buying. again successful summer. The price would then return to the $13.50 level on which to take partial profits before hoping for a continuation of the trend in the longer term. If the price of Chainlink closes a day below $8.00, it will be a sell signal.
Tops & flops of the week (top 50 marketcap)
1- Celsius Network (CEL) : +9,4%
2- NEM (XEM): +2,4%
3- Bitcoin (BTC): +0,1%
1- Synthetix (SNX) : -29,3%
2- Uniswap (UNI) : -26,1%
3- Crypto.com coin (CRO) : -22,9%
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