Daily Market Update - Nov 16, 2020



Bitcoin, BTC to USD, fell by 0.58% on Sunday. Following on from a 1.54% slide on Saturday, Bitcoin ended the week up by 3.00% to $15,965.0.


It was a mixed start to the day. Recovering from an early morning low $15,870.1, Bitcoin rose to a late morning intraday high $16,151.0.


Falling well short of the first major resistance level at $16,343, Bitcoin slid to a late intraday low $15,794.0.


Steering clear of the first major support level at $15,743, Bitcoin moved back through to $15,900 levels to limit the loss on the day.


Resistance at $16,000 pinned Bitcoin back late in the day. The near-term bullish trend remained intact, supported by the latest move through to $16,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $8,768 to form a near-term bearish trend.


Ethereum

Ethereum fell by 2.74% on Sunday. Following on from a 3.35% slide on Saturday, Ethereum ended the week down by 1.33% to $448.58. It was a mixed start to the day. Ethereum rose to an early morning intraday high $463.24 before hitting reverse. Falling short of the first major resistance level at $475.38, Ethereum fell to a late intraday low $439.77. The sell-off saw Ethereum fall through the first major support level at $449.55. Finding late support, Ethereum partially recovered to end the day at $448 levels. At the time of writing, Ethereum was down by 0.27% to $447.36. A bearish start to the day saw Ethereum fall from an early morning high $448.80 to a low $447.13. Ethereum left the major support and resistance levels untested early on.



Ethereum would need to move through the pivot level at $450.53 to support a run at the first major resistance level at $461.29.

Support from the broader market would be needed, however, for Ethereum to break back through to $460 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at $470 before any pullback. The second major resistance level sits at $474.00.

Failure to move through the $450.53 pivot would bring the first major support level at $437.82 into play.

Barring an extended sell-off, however, Ethereum should steer clear of sub-$430 levels. The second major support level sits at $427.06.


Alts


Across the rest of the majors, it was a mixed day on Sunday.

Ripple’s XRP rose by 0.38% to buck the trend for a 2nd consecutive day.

It was a bearish day for the rest of the majors, however, which joined Bitcoin in the red once more.

Chainlink (-3.62%) and Cardano’s ADA (-3.45%) led the way down.

Litecoin (-2.38%), Ethereum (-2.74%), and Crypto.com Coin (-2.37%) also struggled on the day.

Binance Coin (-0.89%), Bitcoin Cash SV (-1.48%), and Polkadot (-1.45%) saw relatively modest losses.

For the week, it was also a mixed bag.

Litecoin (+2.26%) and Ripple’s XRP (+6.29%) bucked the trend for the week to join Bitcoin in the green.

It was a bearish week for the rest of the majors, however.

Crypto.com Coin slid by -10.10% to lead the way down, with Bitcoin Cash SV (-7.90%), Cardano’s ADA (-5.70%), and Chainlink (-4.64%) also struggling.

Binance Coin (-2.59%), Ethereum (-1.33%), and Polkadot (-3.02%) saw relatively modest losses for the week.

For the week, the crypto total market cap fell to a Monday low $421.37bn before rising to a Friday high $471.11bn. At the time of writing, the total market cap stood at $451.28bn.

Bitcoin’s dominance fell to a Tuesday low 64.22% before rising to a Friday high 66.00%. At the time of writing, Bitcoin’s dominance stood at 65.54%. For the Bitcoin Day Ahead

Bitcoin would need to move back through the pivot level at $15,970 to bring the first major resistance level at $16,146 into play. Support from the broader market would be needed for Bitcoin to break back through to $16,100 levels. Barring an extended crypto rally, the first major resistance level and Sunday’s high $16,151.0 would likely cap any upside. In the event of a crypto breakout, Bitcoin could test the second major resistance level at $16,327. Resistance at $16,500 would likely cap any upside to a breakout, however. Failure to move back through the $15,970 pivot would bring the first major support level at $15,789 into play. Barring another extended crypto sell-off, Bitcoin should steer well clear of sub-$15,500 levels. The second major support level at $15,613 should limit any downside.


Crypto News


Overnight, a Bitcoin Cash ABC hard fork took place. The hard fork occurred as a result of disagreement over its Infrastructure Funding Plan (“IFP”).

Early reports indicate that Bitcoin Cash Node (“BCHN”) will become the dominant network, according to Coin.Dance.

At the time of writing, Bitcoin Cash Node was 43 blocks ahead.

  • $BCH forked again this week. Roger Ver was outspoken on these contentious actions and upgrades - even wondered aloud whether PayPal may have dropped the coin ahead of its launch if it knew earlier about the potential drama. PayPal currently offers $BTC, $ETH, $LTC, $BCH and was heralded as a huge milestone for the further mainstream adoption of digital assets.

  • $BCH volatility spiked leading up to the hard fork, seeing a traded range of $20 throughout November. BCHABC introduced a new controversial update named “Coinbase Rule” that requires 8% of mined $BCH to finance protocol development while the other fork, called Bitcoin Cash Node or $BCHN did not implement this rule. Before the fork, Coindesk reported 80% of miners were for the latter. Week to date it has slid 2.6% and down 3.7% in the past month.

  • Grayscale BCH trust has been reported to be losing around $1.6m in value since the hard fork

  • $ETH rebounding this morning to $451 from lows of $440 to start off the week. Looking to recover back to $460 levels on the next rally up as its currently trading at neutral levels and bottom Bollinger bands. $ETH gas fees at 27 gwei

DeFi watch:

  • DeFi TVL was unable to break through $14B TVL at $13.85B, opening this week at $13.41B with coins like $YFI, $AAVE, $COMP, $UNI and $SUSHI up 15-30% over the past seven days. Notably, even with DeFi TVL reaching new highs past the initial craze a couple months ago, we’re seeing less projects for “degens” that held crazy APRs on random food token projects that had put DeFi on the map.

News that caught our eye:

  • More on the subject of PayPal. It will remove the waitlist for its new crypto offering, previously only 10% of its customers were able to access its crypto service. Weekly transaction limits were increased from $10k to $20k. Clearly demand driven action that is an encouraging sign for market observers.

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