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Analysis of bitcoin exchange rate

The past week was marked by a sharp drop in market capitalization to its lowest level on Tuesday, October 30, in the neighborhood of $201.9 million, billion, but in the second half managed to win back all the losses. At the close on Sunday, November 4, capitalization exceeded $209.

Almost throughout the week, Bitcoin maintained its dominance at 54%, but by late Sunday came close to week low at 52%. For most coins from the list of the TOP 20 last week was positive (Fig.1).

Figure 1. – Heat map list of coins the TOP 20 for the period 29.10 – 04.11

A clear leader in growth over the period of last week is a Bitcoin Cash (+28,1%). Second place went to the cryptocurrency Monero (+7%), the third DASH (+6,88%). The leader of the fall is the zcash for (-4,2%).

Dynamics of the rate of BTC

If we talk about Bitcoin, the first cryptocurrency was mixed, but at the end of last week the price for it practically did not change.

After the formation of the pulse upward movement October 15, asset for two whole weeks showed a corrective lateral movement within the channel: $6470 to $6350. Monday, October 29, Btcoin broke the lower boundary of the channel and met a very significant sloping level, which is repeatedly acted in support role for an asset (Fig.2).

The reasons for the fall course

A possible reason for the fall of Bitcoin was the following news: speech at the FinTech forum in Canada to 2018 former Chairman of the Federal reserve system of the USA Janet Yellen and statement Services UK financial conduct (FCA).

Ms. Yellen pointed to a number of negative aspects of Bitcoin in the first place, is a small transaction volumes, a slow ability to “process payments” and “difficulties” caused by the “very decentralized in nature.” Also on Monday, the Service the UK’s financial conduct (FCA) said that it would consider banning sales of bitcoin-based derivatives, including contracts for difference (CFDs), options and futures.

Figure 2. – The dynamics of BTCUSD (H4)

During the period from 23 to 30 October, the growth of open contracts in futures on Bitcoin on stock exchange CBOE up with 3522 3615 with the increase of the net short positions of large players from 1058 to 1077 contracts.

By the end of last week, Bitcoin has managed to win back some losses and close the week at $6400. Yesterday, November 5, the asset has demonstrated a moderate decrease in the area of 0.25%.

The Bitcoin exchange rate today

On the hourly timeframe, you can allocate the formation of the upward momentum with the formation of a 1-2-3 wave. At this moment the price shows a rise within the wave 4 down. In case of breaking of the inclined resistance movement of wave 5 could be the next area of resistance around $6470 to $6490. As the support is exponential moving average EMA 100.

Figure 3. – The dynamics of BTCUSD (H1)

As a positive news for Bitcoin it is possible to update historical maximum Hashrate of the network on Thursday, November 1.

Figure 4. – Dynamics of the Bitcoin Hashrate over the last 12 months

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