Market Update: Crypto Prices Improve After 3-Week Downtrend

Digital currency markets have been trending downward in a triangular pattern since the 40% spike that took place on October 25. Following the three-week downtrend, cryptocurrency traders are quietly playing positions while patiently waiting for the next market signals.

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Crypto Markets Lose 20% Since the Late October Price Spike

During the third week of October, BTC jumped from a low of $7,300 to a high of $10,295. Most crypto markets that day saw a 30-40% rise in value, but since then digital currency prices have slipped. BTC shaved 20% since the last high, dropping to a low of $8,355 on November 15. On Sunday, November 17, crypto prices are a touch higher than the lows on Friday as most assets are up between 0.3% to 2% in the last 24 hours. The overall market valuation for all 3,000+ digital currency markets is roughly $235 billion today. With a market cap of around $154 billion, BTC captures 65% of the cryptoconomy’s entire valuation.

Currently, BTC is swapping for $8,553 per coin and there’s a touch more than $2 billion in 24-hour volume. ETH markets are up 1.69% today as each coin is trading for $185 this Sunday. The cryptocurrency has a market valuation of about $20 billion and there’s $1.3 billion in global ETH trades today. Crypto trade volumes have been extremely slim compared to the volumes seen three weeks ago. XRP is trading for $0.26 per coin and the currency is up 1% over the last day. Lastly, tether (USDT) is the fifth-largest market valuation and the stablecoin is capturing more than two thirds of trades with nearly every digital asset today.

Bitcoin Cash (BCH) Market Action

Bitcoin cash (BCH) is up today more than 1% as each BCH is swapping for $267. BCH has a market cap of around $4.86 billion and $367 million in global trade volume. BCH is the sixth most traded crypto today above XRP and below EOS. USDT is capturing 52% of today’s BCH swaps while BTC commands roughly 24%. This is followed by USD (10.3%), ETH (9.3%), KRW (2.4%), JPY (0.42%), and EUR (0.39%). On Saturday, BCH saw an upside lift to the $274 range but there is major resistance beyond that region. If BCH fails to break upper resistance then the downward trend may continue to play out. At press time there is significant foundational support between $250-265 per BCH.

Are Crypto Markets Still Bearish?

Crypto analysts everywhere are wondering whether markets are bearish or bullish since the big upswing three weeks ago. Since slowly losing a decent chunk of those gains, digital currency market onlookers and spectators are busy contemplating the next big moves. The CEO of Bitbull Capital, Joe DiPasquale, explained this week that a BTC price “drop to $8,000 is a real possibility.” “[BTC] is trading below the 50-day moving average of $8,600, which was acting as support throughout last week,” DiPasquale added. Another analyst from the company Signal Profits, Jacob Canfield, remarked about the consolidation in a similar fashion. “One thing is painfully clear,” Canfield stressed. “We are definitely in a downtrend.” Although, Nem Ventures advisor Nick Pelecanos has seen some different crypto market signals. “Currently Bitcoin appears to be struggling to stay above its support, however, it is showing some bullish divergences so I’d expect a rally in the short term,” Pelecanos noted.

BTC Needs to Jump 1,670% for an ETF According to Fundstrat’s Tom Lee

Bitcoin perma-bull and Fundstrat Global Advisors cofounder Tom Lee told Bloomberg this week that BTC needs to surpass $150,000 per coin in order for an exchange-traded fund (ETF) to come to fruition in the U.S. Essentially that means BTC has to gain more than 1,670% to meet Lee’s ETF standards. At a conference in Singapore, Lee told the crowd that “demand for an ETF is monstrous” and “The SEC needs to punt the ETF until crypto becomes bigger.”

Still, until the U.S. Securities and Exchange Commission does approve a regulated crypto ETF, “institutions aren’t going to touch crypto,” Lee stressed. “If you’re involved in crypto, the SEC can look like an obstacle,” the Fundstrat cofounder said. “They’re establishing protections for individuals and right now it’s not convenient for the industry, but if the SEC is someone that people trust to protect them, that’s how you get the mainstream willing to get involved in crypto.”

Long Term Uptrend Still Intact

Even though market prices have been sliding, a few crypto analysts and traders believe the overall long-term crypto uptrend is still in motion. On November 15, the CIO of Blockforce Capital shared a report from the research firm Delphi Digital which galvanized this opinion. “Optimism following bitcoin’s late October rally appears to be fading as investors and traders alike search for a short-term catalyst to push the crypto market higher,” Delphi Digital’s report notes. “Bitcoin broke below its 200-day moving average earlier this month on its drop back below $9,000, held steady for most of the week before dipping below its 50-day equivalent — a key support level for BTC in the near term — Short-term sentiment gauges have rolled over, the longer-term uptrend still remains intact.”

Lower Prices and Lackluster Volumes Shake Traders

While traders patiently wait for more signs to make money off short-term moves, optimism is still bright in regard to the long-term. Not long ago, digital currency markets saw massive volume surges but crypto trade volumes today pale in comparison. Back then people thought that the high volumes and better prices would bring the bull trend around again, but lackluster volumes and descending prices currently don’t support those predictions.

Where do you see the cryptocurrency markets heading from here? Let us know what you think about this subject in the comments section below.

Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Cryptocurrency prices referenced in this article were recorded at 12:35 p.m. EST.

Images via Shutterstock, Trading View, Bitcoin.com Markets, Getty, Coinlib.io, Wiki Commons, and Pixabay.

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Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.