The cryptocurrency market has started to recover gradually from a major pullback, which occurred following a substantial 40 percent increase in Bitcoin Cash (BCH) and a surge in the price of several other major cryptocurrencies.
Over the last 24 hours, the valuation of the cryptocurrency market has increased from $211 billion to $213 billion, by less than one percent. Some cryptocurrencies including Ripple (XRP) and Ethereum (ETH) have started to demonstrate momentum, both recording around a 2 percent rise in value on the day.
The volume of Bitcoin, which remained above the $4.5 billion mark earlier this week, has dropped to $3.8 billion, as the dominant cryptocurrency struggled to retain stability in the $6,500 region. On fiat-to-crypto exchanges like Coinbase and Bitstamp, the price of Bitcoin has fallen back to the $6,300 region.
Weak Momentum of Bitcoin
Throughout November 7 to 8, within that 48-hour period, Bitcoin showed strength in volume and momentum, initiating a rally to $6,550. But, at the time, technical analysts stated that BTC would have to comfortably breakout of the $6,600 resistance level and test the $6,800 resistance level to confirm a bullish short-term price action.
“Resistance levels I’m looking at are horizontal red lines. $6,600 / $6,650 next. Levels should be fairly obvious and have previously acted as resistance, the more, the more meaningful. No point in being too precise, small increments represent noise,” technical analyst Alex Kruger said on Wednesday.
Since then, BTC endured a pullback from $6,550 to $6,350, after recording significant sell volume on both Wednesday and Thursday.
According to cryptocurrency trader Don Alt, until the weekly candle of BTC closes, the asset is not likely to engage in a major price action in the high region of $6,000.
“Weak showing from BTC. Crashed through support & closed below the range low. I assume we won’t be getting too much action this weekend and am waiting for the weekly close. Hoping for a clear signal,” he said.
With the volume of BTC down more than 15 percent within the past 72 hours and considering the fact that the volume of the cryptocurrency exchange market tends to dip during the weekend, BTC is highly unlikely to demonstrate any positive short-term price movement above the $6,500 mark at least in the next 48 hours.
Decentraland and Pundi X Performing
Pundi X (NPXS), a blockchain project that provides cryptocurrency payment solutions to merchants, recorded a daily gain of over 13.5 percent as the best performing digital asset of November 10.
The short-term increase in the price of NPXS is speculated to have been triggered by the listing of NPXS by Upbit, the second largest cryptocurrency exchange in the market.
Decentraland (MANA) also demonstrated a daily price increase of over 6 percent, following several positive developments including the latest sale of a 126 land parcel estate on its virtual reality platform for over $216,000.
— Barry Silbert (@barrysilbert) November 5, 2018
Despite the concerns of analysts that the recent crackdown on EtherDelta for the distribution of unregistered securities could lead to a drop in the price of tokens, several projects have seen positive price action in the past 24 hours.
Featured Image from Shutterstock. Charts from TradingView.
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Author: Joseph Young