Bitcoin Hands the Reins Over to Bitcoin Cash to Drive the Market This Week

Bitcoin gained 1.6% on Sunday, reversing a 0.59% fall on Saturday, to end the day at $6,491.7, with the day’s rebound wiping out the week’s losses to leave Bitcoin with just a 0.02% gain for the week.

In what was a choppier weekend than normal, Bitcoin Cash reintroducing volatility into the cryptomarket ahead of a 15^th November hard fork, with an 18.8% Bitcoin Cash rally on Sunday ultimately driving the broader market and Bitcoin into positive territory for the week, though for many of the majors the gains were not enough to wipe away October’s losses.

News of cryptocurrency exchange Coinbase supporting BCH in the upcoming fork drove sentiment at the end of the weekend, exchange and regulatory news continuing to be the key drivers for the broader markets, with blockchain success stories still having little very influence, as investors look out for news of the SEC ruling on the 9 Bitcoin ETFs and whether BCH can survive the upcoming hard fork, not to mention continued regulator chatter.

It would certainly be particularly damaging to the broader market should BCH fail to survive the hard fork, Bitcoin Cash’s 4^th place ranking of material influence to sentiment and cryptomarket stability, though whether Bitcoin Cash can hold onto the recent gains remains to be seen, post hard fork moves tending to see reversals as investors cash out and move on.

For Bitcoin, the broad based market rally on Sunday pulled Bitcoin’s dominance to sub-53% levels, Bitcoin’s 1.6% rise minor relative to the broader market that contributed to the total cryptomarket cap breaking out through $210bn to $212bn, while still well below the pre-millpond days that had ultimately led to some sizeable losses through October.

For the Bitcoin bulls, it’s a case of deja-vu, with Bitcoin recovering to test $6,500 resistance that had pinned Bitcoin back from any upside through the 2^nd half of October. Things are unlikely to get any easier in the coming days as investors wait on for the SEC decision on the 9 Bitcoin ETFs that can be delivered at any time, a decline being a worst case scenario that would test Bitcoin’s sub-$6,000 support once more.

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At the time of writing, Bitcoin was down 0.31% to $6,471.6, with a more than 4% slide in Bitcoin Cash weighing on the broader market in the early part of the day.

An early morning high $6,500.6 saw Bitcoin come up against long standing resistance at $6,500 and fall short of the first major resistance level at $6,561.43 before pulling back to a morning low $6,455.9, the day’s first major support level at $6,389.93 also left untested early on.

Investors will be looking out for SEC news later today that will weigh on Bitcoin and likely leave Bitcoin in the red through the day, though Bitcoin Cash moves will need to be tracked, with any Bitcoin Cash recovery through the day expected to provide some support to Bitcoin and the broader market.

It’s going to be another relatively choppy day, with Bitcoin needing to hold above $6,460 to avoid sub-$6,400 support levels on the day.