Bitcoin Reaches New Yearly Highs While Investors Grasp 5.72% in Weekly Returns
The flagship cryptocurrency continues rising against all odds. Many investors have been cautious about the extreme levels of greed in the market, but it seems like this year’s halving is starting to impact prices.
As demand surpasses the number of tokens that holders are willing to sell, the supply shortage appears to be triggering a new parabolic advance as it did in all previous halving.
Such market behavior was visible during the week of November 9th. Bitcoin kicked off the weekly trading session at $15,483, and within eight hours, it had jumped more than 2.4% to hit a high of $15,857. A spike in miners’ deposits to exchanges followed the upward price action, which resulted in a 6.56% correction.
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By 16:00 UTC, BTC had dropped to $14,817, marking the week’s lowest price point. As buy orders began to pile up, the pioneer cryptocurrency was able to recover all losses incurred. The buying pressure saw it rise for two consecutive days to reach a high of $16,000 on Wednesday, November 11th, at 16:00 UTC.
This price point was met with a lot of excitement from the cryptocurrency community because it was the first time since January 2018 that Bitcoin was trading at such levels. Bears were able to capitalize on the hype and triggered a 3.46% pushing BTC down to $15,447. Regardless, demand continued rising alongside prices.
By Friday, November 13th, the bellwether cryptocurrency had surged another 6.8%, reaching a new yearly high of $16,492. But as the week was coming to an end, some investors seemingly decided to realize profits pushing prices down to close at $16,340. Bitcoin holders were able to generate a weekly return of 5.72% due to the impressive price action.
Ethereum Goes Through Unannounced Hard Fork But Manages to Weather the Storm
Like Bitcoin, Ethereum also opened the week of November 9th going through high levels of volatility. The smart contracts giant dropped 2.23% during the first few hours of Monday’s trading session, then rebounded by 3.5% to a high of $460, and ultimately plunged 5.7% to hit a low of $433.83. Despite the erratic price action, Ether was in a steady uptrend throughout the rest of the week.
Indeed, the second-largest cryptocurrency by market capitalization was able to bounce off from support to hit a high of $476.8 on Wednesday, November 11th, representing a nearly 10% upswing. Although it appears that ETH had more gas in the tank, the Ethereum Foundation pushed the network into an unannounced hard fork that put a pause to the uptrend. Market participants reacted negatively to the news as it showed the levels of decentralization on the protocol.
What followed was a 5.2% correction that saw Ether retrace to a low of $452. Although the crypto community appeared concerned about the two-year-old dormant bug that caused the network upgrade, the news was not significant enough to ignite further selling. Consequently, the smart contracts token resumed its uptrend, pushing for higher highs.
By Friday, November 13th, Ethereum was up more than 5.8%, trading at a high of $478.31. Prices tumbled a little as the weekly trading session was coming to an end, and ETH closed at $477.15. Investors were able to grasp a weekly return of 5.15%.
Higher Highs on the Horizon
Crypto enthusiasts are growing overwhelmingly bullish about the price action that Bitcoin and Ethereum experienced throughout the week of November 9th. Since the crowd’s wisdom is usually wrong, the overall market sentiment is something to be concerned about. It is imperative to employ a solid risk management strategy to avoid potential losses in a sudden correction.
Nonetheless, it seems like both BTC and ETH are poised for higher highs from a technical perspective. The Tom Demark (TD) Sequential indicator suggests that these cryptocurrencies may continue to rise for another two to three weeks before a sell signal emerges. If this is the case, Bitcoin could rise to $19,000, while Ethereum breaches the $500 mark.
Konstantin Anissimov, Executive Director at CEX.IO
