Markets Update: Bitcoin Price Took A Dive After Breaching New Highs

The price of bitcoin dived on November 6
after reaching an all-time high of $7,590
across global exchanges. The decentralized
currency’s value dropped to the
$6,950-7,000 range. At the moment, the
cryptocurrency’s market is consolidating
above the $7K territory after the late
afternoon sell-off.
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Bitcoin’s Meteoric Price Rally
Hits the Brakes
What a difference a day can make in the
land of bitcoin markets. Yesterday on
November 5 bitcoin reached an all-time
high (ATH) $7,590, but has since taken a 7
percent loss on November 6 which started
around 1 pm EDT. Bitcoin’s market
capitalization has shaved off a few billion
as BTC currently commands a little over
$116B. Even though bitcoin’s price
corrected a touch, trade volume is
exponentially high as there’s been over $3B
worth of 24-hour global trade volume during
each day of the week. Since the slump
bitcoin’s market share dominance
compared to all the other crypto-assets is
still above 60 percent, but it may not last if
the price drops further. Every
cryptocurrency throughout the top fifteen
highest crypto-caps, other than bitcoin
(BTC), is in the green and up 2-15 percent.
The first week of November belongs to the
Japanese yen again as far as capturing the
leading bitcoin volume by currency. The yen
is followed by the USD, KRW, EUR, and BGP
capturing the most bitcoin trade volume
right now. The top five exchanges by
volume on November 6 are Bitfinex, Bitflyer,
Bithumb, GDAX, and Bitstamp.
Technical Indicators
Currently, bitcoin markets are trying to
consolidate in the $7K-7,150 region, but
bearish sentiment has set in as the
currency lost $500+ in the last 6-hours. A
few days ago oscillators had shown a few
slight pullbacks were taking place as bulls
started feeling some exhaustion. At the
moment buyers have stepped away to gain
new positions after last week’s meteoric
rise. Even though bitcoin markets had
dropped a solid eight legs down, the 100
Simple Moving Average (SMA) is still
holding above the long-term 200 SMA.
Basically, this means bulls are taking a
temporary rest, and the upswing will
continue after some short-term
consolidation.
Stochastic has been heading south,
confirming overbought conditions, but at the
moment the Relative Strength Index (RSI) is
meandering sideways. Order books show
some foundations in the $6,800-6,900 range
if bears pull markets down more.
Additionally, looking at the other side order
books reveal some resistance again at
$7,400-7,550, but the biggest wall is $8K.
Bitcoin prices could easily spike back to
newer ATHs and above the $8K zone before
the fork, but a correction in the meantime
was to be expected.
Hard Forks & Futures
Bitcoin markets have already been
experiencing some nice swings back and
forth. Cryptocurrency proponents are
steadily preparing for the upcoming
Segwit2x fork which hasn’t affected the
market negatively so far. Just like the
August 1 bitcoin cash hard fork, the price is
actually seeing some more significant buy
pressure. Another thing that may be helping
the price is CME Group’s recent bitcoin
futures markets announcement. According
to CME, the BTC futures exchange will be
launching on November 14. Being the
largest FX exchange worldwide CME’s new
exchange has brought some optimism that
bitcoin is being embraced by the
mainstream.
Moreover, the notorious Goldman Sachs
markets team ‘Elliott Wave Theorist,’ Sheba
Jafari , has some more predictions up her
sleeve. Jafari sees a target of $7,941
according to her weekend notes meant for
private investors. The analyst has become
well known because she has seen some of
her forecasts come true while other times
she’s been way off the radar. After the
$7,900s Jafari notes some consolidation
will take place “before continuing higher