Investors expect more volatility and less volume on oversold Bitcoin
Cryptocurrencies have maintained their positions in recent days, with little movement in the prices of the main cryptoassets by market capitalization. Meanwhile, analysts warn that volatility may rise and volume may fall due to the Thanksgiving holiday in the US and the close of the month of November. Bitcoin is trading in a price range that holds $55,500 as support, while rallies remain limited to $60,000. However, experts warn that drops to $53,000 are still possible.
With the price currently at $56,000, the most traded of digital currencies is a buying opportunity as it looks very cheap when related to blockchain activity. This is seen as a decidedly bullish sign, according to Philip Swift, creator of analytics platform LookIntoBitcoin, who indicated in a Twitter comment that the world's largest cryptocurrency is "clearly oversold," which can only result in a "strong reaction in the not too distant future."
"The stochastic momentum oscillator has extreme daily oversold readings," agreed José María Rodríguez, analyst at Bolsamanía. According to the expert, we are in a market moment similar to the end of September, in which the price was close to two weeks, congested with clear oversold levels accumulated in that period. "And then it broke violently to the upside," Rodríguez added. "What is impossible to determine is whether or not Bitcoin will try to attack the important support at $53,000. But if it does, that's where it would make more sense than ever to jump in the pool," warned the expert.
ETHEREUM CONTINUES TO STAND OUT AMONG ALTCOINS
As for Ethereum, the second-largest cryptocurrency by market capitalization has tried time and again to break hard above $4,300 to get the bulls back in on the action, but to no avail. Daily highs in recent sessions have been marked above this resistance. However, technical analysis points to the fact that in order to reach $4,500 and $4,600, buyers must push the price above $4,451.
The total market capitalization remains at 2.5 trillion, while Solana, Cardano, Ripple, Dogecoin or Shiba Inu are in the red. The suffering of the latter 'cryptomeme' stands out, particularly, as it accumulates a 60% decline in four weeks and sends signals of plummeting interest around the token that self-proclaimed itself as "the Dogecoin killer".
The price of Shiba Inu (SHIB) has corrected sharply, after setting an all-time high on October 28th, indicating that traders have been actively embarking on clear profit-taking of their gains. This has resulted in a substantial drop in volumes of this token on platforms such as Binance, pointing to a decline in interest from retail investors, who were the ones who boosted the price in the first place.
SHIB's market capitalization has touched one-month lows around $20 billion, down from highs at $51 billion in late October.