Ten years ago, during the peak of the global financial crisis, an unknown person under the pseudonym of Satoshi Nakamoto published an article about bitcoin. If back then Nakamoto single-handedly supported the bitcoin network, then now this cryptocurrency is considered as a threat to the Earth’s existence. In the process of extracting and maintaining the network, power capacities comparable to a small country are involved. In the recent past, 10,000 bitcoins could only buy a pizza, but now the first cryptocurrency is recognized as a new institutional asset class.
In spite of a two week flat supporting the $6,500 mark, the price of bitcoin still collapsed. A correction wave from $7,650 turned into a flat wave. A sharp decline from $6,500 could have been triggered by the execution of the buyer's protective orders. This mark was for many the pullback peak to the upward trend of $6,200 - $7,650. Therefore, when forming a downward reversal, buyers placed protective orders under the base of the reversal wave.
The support of $6,300 has not lost its relevance since, after the fall, an upward impulse of a similar scale followed. This mark has recorded greater buyer activity.
Not everyone was able to put up protective orders, so it is worth bearing in mind that these buyers can close unsuccessful transactions when they reach a price of $6,500. If in the previous flat the majority was buying, then on the flat of November 1, an increase in volume with low activity is seen. This means that someone invested a large sum. From a technical point of view, this is followed by either a rising flat wave or a correction. But in order for bitcoin to continue growing, it needs to overcome the resistance of $6,500. If the price fails to do a U-turn at this level, then the probability of a new fall to $6,300 - $6,200 is high.
This week, at the Devcon4 conference, Vitaly Buterin shared light on a new ethereum update - ethereum 2.0, Serenity. The new version of the platform will be able to handle up to 1000 operations per second, which is ten times more than the current version. The creation of the block will take up less energy since the community will be able to switch to a Proof-of-Stake consensus: creating blocks by holding coins.
Similar to bitcoin, the price of ether, has formed a flat down wave. For buyers of ether, the “Triple bottom” figure served as a signal for the end of the correction, which was a basis for placing sell orders.
Before the formation of a reversed figure, one can see how the activity of ether buyers increased. The largest purchases are marked with green dots. After the formation of the “Triple bottom”, the volume of purchases fell drastically.
The current upward trend is within the correction. In order for the flat wave to start rising, the course of ether must be turned around by $205. This is the most likely peak for a pullback to a downward movement from $240. At this level, short-term buyers with $200 will begin to take profits, and buyers with $205 will close their positions at breakeven. If the demand at this mark increases, the price will form an upwards reversal. Otherwise, the course will return to $200.
While the price of ripple continues its correction, the company has hired the former senior Google developer Amir Sarhangi. Unlike bitcoin and ethereum, ripple rate is showing a steady pullback.
The inverted “Head and Shoulders” figure has not yet formed, and the price once again collapsed to support $0.435. Compared with the previous rebound from this mark, this time the volume of purchases was greater. A prolonged correction in a narrow range will give rise to a long wave trend, which may well be twice as large as the first wave $0.3780 - $ 0.52. For growth to $0.6 at the ripple rate, a reversal at $0.48 is needed. Such a reversal will talk signal that the buyers will have an advantage over sellers.
As expected, the increase in supply volume caused a new drop in the price of bitcoin cash. At around $440, many bought in the hope of an upwards rebound. The largest volumes of purchases were formed before the turn-down wave.
In late October a large seller was spotted. During those days, sales increased, but activity fell. Similar things happened before a sharp decline. Perhaps they influenced further movement. Moreover, there is a backlash in the current growth, an increase in the volume of purchases and almost no activity.
EOS has followed the steps of the first cryptocurrencies. Unlike other coins though, the largest volume of EOS purchases was formed during the growth starting with October 11.
Traders who were buying at that time, most likely put orders for sale under the formed peak of the rollback. In the course of the formation of the correction, you can also notice the discrepancy between activity and volume. This is especially evident before the fall itself. As a result, the correction was replaced by a flat with the boundaries of $5.02 - $6.02.
From all this, it appears that the previous decline in the top cryptocurrencies was a manipulation. The activity and volume of purchases grew, but the price fluctuated in a narrow range and then collapsed. In a few of the top coins large buyers appeared when prices rebounded upwards. It can be assumed that if there will be no more manipulations, then next week the probability is in favor of growth.