WMA: Bitcoin Back In the Saddle After the Bears Took $3k From Its Value
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This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $540 billion.
- Bitcoin is back trading over $18,000 after losing $3,000 during the week.
- Ethereum bled nearly 20% of its value throughout the week.
- XRP continues to surge with an increase of nearly 43% in the past seven days.
- OKEx finally allows withdrawals again and sees users withdraw over 29,000 BTC almost instantly.
Crypto Trends 23rd – 29th of November 2020: PERFORMANCE & ANALYSIS
It’s been a topsy-turvy kind of a week for the cryptocurrency market, which sees only a $10 billion increase in its market capitalization compared to last week. Bitcoin lost almost $3,000 in less than 24 hours, Ethereum bled heavily, and Polkadot seems to be losing all its hard-earned gains. Good news came from overachievers like Ripple’s XRP and the DeFi sector.
As always, the main story concerns Bitcoin. The primary cryptocurrency was flying high for the first half of the week. On Wednesday, it reached almost $19,200, and the psychological 20k barrier was in hand’s reach. Suddenly, it took a tumble and lost more than $3,000 in less than a day.
Some investors were shocked at the bears’ unexpected return, but a few visible factors caused BTC to fall that dramatically.
First, the previously hacked crypto exchange OKEx finally announced that it accepts withdrawals again, which led to its users withdrawing most of their assets, including roughly 29,300 BTC.
Secondly, rumors that the US regulators may enable cryptocurrency use only if wallet users reveal their IDs caused outrage throughout the industry. Bitcoin, together with most altcoins, took it to their hearts and started bleeding.
Fortunately, the crypto market is stronger than it was around this time last year, or even eight months ago, during the pandemic-induced crash. Most of the coins started trading in the green again as the weekend started, and Bitcoin regained most of its loss. At the moment, Bitcoin is trading around $18,069.
After an outstanding period last week, Ethereum came to a halt in the past seven days. It managed to lose more than 20% of its value, and while it’s still up by 3%, it is far from the $600 resistance level, which it managed to surpass ten days ago. Ethereum is now trading at around $556 and looking to break the next resistance level at $580. The nearest support level lies at $520.
Nothing seems to be able to stop Ripple’s XRP from its spectacular surge towards the $1 resistance level. After gaining more than 40% in the last seven days, XRP is trading now at around $0.616.
Elsewhere, most of the altcoins took a fall together with Bitcoin, but they also regained most of their losses during the weekend. Polkadot had a disappointing week as it lost almost 8% of its value, and it is very close to exiting the Top-10 of best-trading cryptos. On the other hand, Cardano is experiencing a spectacular rise by adding more than 23% to its value.
What’s in the News?
- Facebook’s Libra might be released in January 2021, according to this report.
- South Korea is expected to postpone its cryptocurrency income tax rule until 2022.
Next Week’s Market Forecast
The cryptocurrency market is looking to end the year on the high, and occasional hiccups like those it experienced this week are not doing it any good. Bitcoin seems to have matured enough to recover quickly after sudden value drops. With the ATH in plain sight, we might see it fight hard to overcome the psychological level at $20,000 by Christmas.
Elsewhere, there is plenty of enthusiasm and expectancy floating around in the crypto space for the upcoming launch of Ethereum 2.0, which should take place next week on December 1st.