The last few weeks have been stellar in the cryptocurrencies market, to the delight of investors. In an exceptional month of November, Bitcoin once again gained nearly 10% over the last seven days, now trading at €16,100 ($19,300) and closer than ever to its historical high of December 2017 at €16,400 ($19,700). Compared to last week, we observe a ”catch-up” effect on altcoins, with weekly performances of 24% for Ethereum, but also more than 100% on XRP.
In this new bull market now confirmed, the major technical question is now to know when this bullish wave we have been observing since the beginning of October will come to an end and make way for a correction. This is a very difficult question, as the current movement is so widespread. It becomes likely that the price of Bitcoin will reach a new all-time high in the coming days. We will see in the analysis a potential price zone for a reversal. Altcoins should continue to move in the wake of Bitcoin. A beginning of correction on BTC will signal the end of the rise on most of the altcoins as well.
- According to CoinGecko, market capitalization is again rising sharply, $580 billion, up from $500 billion last week.
- Bitcoin’s dominance fell to 60.8% from 64.6% last week.
- The best performance of the top 50 is to be attributed to Stellar (XLM) with +134% over one week.
We invite you to discover our analysis in video (in french and dated from November 24th) :
Hold / profit taking
- Depending on your exposure to Bitcoin and your previous entry prices, you can either hold or partially take profits if you have not already done so. It is now likely that Bitcoin will reach a new historical high in the coming days. But the current price movement is beginning to be over extended.
- Fibonacci’s extensions technique allows us to frame price zones on which the price has a good probability to react. The zone between €15500 and €20000 ($18500 and $23800) appears to be a good area to take profits because it could mark the beginning of a correction. Then, in the idea of keeping capital to buy or to strengthen on an optimized level, the zone continues to evolve as long as Bitcoin marks new highs. The 2019 weekly top at €11400 ($13800) seems to be an interesting level to buy in if the price makes a pullback on it during a correction.
- Very nice week on Ethereum (ETH) which finally accelerates with an increase of 23.5% over one week to reach €502 ($597) this November 25. The aggressive entry that we suggested last week in breaking the 415€ (495$) has paid off. We continue to hold Ethereum this week and are now targeting the 590/670€ (700/800$) zone to take some profits.
- Ripple (XRP) offers us a price action that we have already seen before. With a strong and sudden rise over the last few days, it has gained 120% over the week, now at €0.56 ($0.68). The resistant zone that we were monitoring at €0.29 ($0.35) triggered a very strong acceleration as soon as it was broken. If you didn’t buy in at that time, it is now risky to buy in. The €0.55 ($0.65) then €0.72 ($0.86) Fibonacci extension zones are interesting to take profits or sell. On the other hand, a return of the price on the €0.42 ($0.50) level could be an opportunity to buy.
Tops & flops of the week (top 50 marketcap)
1- Stellar (XLM): +138%
2- Ripple (XRP): +120%
3- Waves : 53,5%
1- Aave : -18%
2- Synthetix (SNX): -1,2%
3- yearn.finance (YFI): -0,7%
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