Crypto Market Update: A Comprehensive Overview in Mid-November

November 13, 2023

As we are getting closer to 2024, the cryptocurrency market pulsates with energy, particularly in the area of crypto spot trading. This update, brought to you by Alvatix, delves into the current state of the market, highlighting the pivotal roles of Bitcoin and Ethereum in this transformative era.

The crypto landscape is a fusion of technology and trust, intertwining finance with foresight, and painting a picture of a market brimming with potential. In this article, we aim to demystify the complex interplay of numbers and strategies, offering a clear view of the institutional manoeuvres that are continually shaping the crypto spot market.

Join us as we navigate through these exciting developments, understanding the intricacies that drive the digital currency world, and unveiling the opportunities that lie within. With insights from Alvatix, this journey into the heart of the crypto market promises to be both enlightening and enriching.

Bitcoin's Recent Market Performance

Bitcoin, the original digital coin that has long enjoyed BTC dominance, continues to astonish and confound the market with its dramatic pirouettes.

BTC/USD TradingView Chart by Alvatix
BTC/USD TradingView Chart

Recently, the price ascended to a noteworthy $37,872, marking a significant uptick within a mere 24 hours. This upward trajectory is not an isolated event but a part of a bullish pattern, with a 7% rise seen over the previous week.

The market's optimism is tied to the whispers of regulatory nods for a Bitcoin ETF, which has rocketed prices to ATHs not seen since May 2022.

A Tidal Wave of Transactions

The Bitcoin network has experienced a significant surge in transaction fees, with costs climbing by 150% in just three days. High-priority transfers, previously averaging $3.38, now demand a fee of $8.46.

BTC transaction fees by Alvatix
Transaction Fees

This rise, recorded on November 9, 2023, correlates with a backlog of over 200,000 pending transactions in Bitcoin’s mempool. Factors contributing to this include a spike in Ordinal inscriptions and the increased demand for block space, now costing more than ever.

Miners are currently grappling with a 429 megabyte data backlog, or about 229 blocks, leading to substantial transaction delays. Average transaction fees have risen to 0.00019 BTC ($7.17), with median fees at 0.00011 BTC ($4.34) per transaction.

This fee hike is partly due to Bitcoin's value approaching $38,000 and increased activity on exchanges, compounded by the processing of financial transactions and Ordinal inscriptions.

Bob Burnett, CEO of Barefoot Mining, predicts continued increases in BTC transaction fees. He emphasizes the growing cost of transactions as a reflection of the end of an era of cheap block space, advising on UTXO consolidation and secure long-term storage solutions.

Amidst this backdrop of rising fees and transaction backlogs, the crypto market has been hit by a massive wave of liquidations.

Total Liquidations Chart by Alvatix
Liquidations Chart

In a single day, 145,141 traders faced a combined $431.20 million in liquidated trades, highlighting the extreme volatility and high-risk environment of cryptocurrency trading.

The largest single liquidation event involved a BTC-USDT-SWAP on OKX, amounting to $14.76 million.

Ethereum’s Price Surge and Investor Sentiment

Ethereum, the beacon of blockchain versatility, has seen its value skyrocket past $2,100, a surge largely attributed to BlackRock's filing for an Ethereum ETF with NASDAQ.

Such bullish news has propelled Ethereum's price, lifting it from $1,913 to an impressive high of $2,050, with the currency trading around $2,097 at present.

This leap is also mirrored in its 10.49% increase over the day, marking a remarkable 17.88% gain over the week.

Season of Altcoins: The Institutional Interest in Ethereum

The altcoin season of 2023 has indeed been marked by a surge in institutional interest, particularly in Ethereum. Here are some of the latest developments:

  1. BlackRock’s Ethereum Trust: BlackRock, the world’s largest asset manager, has registered an Ethereum Trust in Delaware. This move signals Wall Street’s deepening involvement with digital assets. The trust was registered under the name of BlackRock Advisors. The news sparked a rally in the crypto market, with Ether spiking 10% to its highest level in 6 months.
  2. BlackRock’s Ethereum ETF Application: In addition to the Ethereum Trust, BlackRock has also filed for a spot ETF backed by Ethereum. The $8.5 trillion asset manager is seeking to list the Ethereum product on the Nasdaq exchange.
  3. ARK Invest and 21Shares’ Digital Asset ETFs: ARK Invest, in partnership with 21Shares, is launching a suite of digital asset ETFs. These ETFs will provide exposure to Bitcoin (BTC) and Ether (ETH) futures contracts. One of the products, the “ARK 21Shares Blockchain and Digital Economy Innovation ETF”, will invest in public equities of companies within the blockchain industry.

BTC & ETH Technical Outlook and Market Predictions

Bitcoin (BTC) has recently showcased a positive uptrend, breaking through the $37,000 resistance barrier and stabilizing just above this level. Various technical indicators present a complex picture of its market dynamics. The Relative Strength Index (RSI) is high at 83, hinting at a potential overbought state.

Bitcoin USD TradingView Chart by Alvatix
BTC/USD TradingView Chart

However, the Stochastic oscillator maintains neutrality at 74, and the Commodity Channel Index (CCI) at 162 suggests a bullish trend might continue within a neutral zone.

The Moving Averages (MAs) for Bitcoin, including both Exponential Moving Averages (EMAs) and Simple Moving Averages (SMAs) across different time frames (10, 20, 30, 50, 100, and 200 days), unanimously point towards a bullish sentiment.

This consensus underlines a strong upward trend, with shorter-term EMAs, like the 10-day at $35,481, confirming recent gains, and the longer-term averages, such as the 200-day EMA at $28,496, validating a more prolonged bullish trajectory.

Bitcoin's market behavior further underscores its bullish strength, with a significant 7.5% increase over the last week and a notable 34.9% rise over the past month.

This momentum could likely lead to a speculative surge, pushing prices even higher before any potential market corrections.

Ethereum (ETH), the second major player in the cryptocurrency domain, mirrors Bitcoin's gains with a substantial 17.4% increase week-on-week, currently priced at $2,097.

Ethereum (ETH) - USD TradingView Chart by Alvatix
ETH/USD TradingView Chart by Alvatix

However, Ethereum's oscillators send mixed signals. The RSI is high at 80.3, suggesting a potential for correction, and an overly bullish Stochastic at 90.6 also leans towards neutrality. The CCI at a high 262.3 adds to the bearish sentiment indicators.

In contrast, Ethereum's moving averages, similar to Bitcoin’s, indicate a positive trend. All indicators from the 10-day to the 200-day averages point to strong upward momentum.

The disparity between the short-term EMA at $1,937.7 and the long-term SMA (200-day) at $1,777.4 suggests that while Ethereum's immediate trend is bullish, there's a potential for overheating that may lead to a near-term correction.

Ethereum's market capitalization stands at a robust $252 billion, reflecting its significant 33.1% growth over the past month. The trading volume and market capitalization highlight Ethereum's liquidity and trader interest, signifying a robust market.

Nevertheless, the inflated oscillator values caution against potential volatility and the sustainability of its current price level.

In a fascinating development for the cryptocurrency market, renowned crypto analyst Rekt Capital has highlighted a critical resistance range for Bitcoin (BTC) that, if broken, could signal a major shift in the digital currency's market structure.

This pivotal range lies between $58,000 and $69,000—a threshold that has repeatedly influenced Bitcoin's price trends, especially in 2021.

Historically, Bitcoin has faced resistance in this price band, often leading to bear markets as it sought a stable bottom price. However, post-halving events, such as those in 2016 and 2020, have seen Bitcoin revisit and then successfully hold this range, transforming resistance into support and kicking off new bull markets.

Assessing the Crypto Market's Ups and Downs

The crypto market has been a rollercoaster ride recently, with significant ups and downs. The buzz around Bitcoin ETFs, particularly the BlackRock initiative, has added to the excitement. Here are some of the latest developments:

  1. BlackRock’s Bitcoin ETF Application: BlackRock, the world’s largest asset manager, has filed an application to create a spot bitcoin ETF in the U.S. This application includes a Surveillance-Sharing Agreement (SSA) that allows suspicious trades to be flagged to the authorities. The application also includes an information-sharing deal that gives regulators the right to demand extra background. This move by BlackRock signals a significant step towards institutional participation in the crypto market.
  2. BlackRock’s Ethereum Trust: In addition to the Bitcoin ETF, BlackRock has also registered an Ethereum Trust. This move further indicates Wall Street’s deepening involvement with digital assets.
  3. Bitcoin Price Movements: Amidst these developments, Bitcoin’s price has seen significant fluctuations. It recently posted a yearly high of $37,942 before settling around $36,600.
  4. Potential Impact of Spot Bitcoin ETF Approvals: The approval of spot Bitcoin ETFs could potentially lead to a significant increase in the value of Bitcoin investment products. A former BlackRock director has suggested that U.S regulators may approve spot Bitcoin ETFs as early as January, potentially leading to a $200 billion windfall for Bitcoin investment products.

The risk-reward scale of the crypto market. While the potential rewards are high, the risks are equally significant, as evidenced by the high volume of recent liquidations. As the crypto market continues to evolve, it will be interesting to see how these developments unfold and what impact they will have on the broader financial landscape.

Concerns Rise as Bitcoin Experiences Extreme Volatility

In a single day, the Bitcoin market faced extreme turbulence, highlighted by a staggering $1 billion wipeout in open interest, primarily from Binance. This shift led to the Chicago Mercantile Exchange (CME) taking the lead in open interest. Furthermore, the market saw over $450 million in liquidations, while Bitcoin's market cap surged by 5%, marking one of its largest one-day changes.

Bitcoin (BTC) Market Cap Graph since 2014 by Alvatix
BTC Market Cap Graph

This tumultuous period coincides with significant institutional movements, notably BlackRock's near confirmation of a Bitcoin ETF approval. This institutionalization is a double-edged sword, bringing both stability and heightened scrutiny. Meanwhile, traditional market makers faced severe challenges, with many struggling to adapt to the volatile environment.

BTC/USDT SMA TradingView Chart by Alvatix
BTC/USDT SMA TradingView Chart

The fluctuation in open interest, from reaching new year-to-date highs to falling back towards August lows, suggests a necessary market correction. However, these developments raise concerns about the market's volatility and the potential risks for investors, especially those new to the cryptocurrency space.

Conclusion: What the End of 2023 Holds

As 2023 draws to a close, the cryptocurrency landscape, particularly for Bitcoin and Ethereum, is witnessing a dynamic transformation. This year has been marked by significant shifts, driven by strategic maneuvers from institutional players and influenced by the broader macroeconomic environment. The intricate dance of technical analysis and market sentiment is shaping a vibrant and potentially lucrative future for the crypto market.

BTC's dominance continues to be a pivotal factor, layering complexity into the market's dynamics. In such a fast-evolving environment, traders and investors need to balance caution with opportunity. Staying informed and adaptable is key in navigating the changing tides of the crypto world.

This insightful analysis is brought to you by Alvatix, we're dedicated to enhance your trading journey by simplifying trading decisions and identify the most profitable opportunities in the crypto market. We invite our readers to explore the Alvatix beta webapp, a valuable tool for anyone looking to make informed and strategic trades in this ever-evolving market.

Embrace the future of crypto trading with Alvatix, and seize the opportunities that lie ahead in this thrilling journey.






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