October ended as one of the best months for Bitcoin, and we started November and the good expectations continue. Crypto market capitalization just hit a new annual high of $ 465 billion.
Certainly in large part this new record is thanks to Bitcoin, since the capitalization of this cryptocurrency contributes more than 64% to the total, and looks like it wants to continue increasing its dominance.
However, altcoins have already started their rally and are also contributing to growth, after BTC started to show a bit of exhaustion and started to slow its momentum.
Ethereum for example has accumulated gains of 20.13% in the last 7 days. In the case of Ripple, the gains are 8.76%. One of the increases that stands out the most in the TOP 10 is that of Chainlink, with gains of 27.30% in the last 7 days.
Crypto market capitalization hits a nearly 3-year high
The maximum that we are seeing today in capitalization, reached a level that had not been visited since April 2018. We are talking about more than 900 days ago.
The historical maximum is at $ 761,000 million, which means 72.92% far from the current level of $ 447,000 million.
Knowing the volatility of cryptocurrencies, and how close Bitcoin is to its ATH, I don’t think it’s a difficult goal to hit.
The medium-term trend of the crypto market capitalization is bullish. Although the current momentum is quite developed, there are no signs yet that it will stop anytime soon.
In any case, a correction will only serve to get demand that continues to drag prices up.
Bitcoin rally starts to cool down
Just as the cooling of the ETH rally with the explosion of the DeFi, opened the way to a circulation of capital towards the BTC market, the same is happening now but on the contrary.
After Bitcoin hit an annual high of nearly $ 16,000, dragging crypto market capitalization higher, now momentum is starting to show signs of exhaustion.
Although this should not be a long-term concern, a correction of the largest of the cryptocurrencies is quite likely to start.
From the daily chart BTC vs USDT, we observe how the RSI indicates overbought and has been accumulating a bearish divergence. This shows the bulls’ lack of strength to continue to set new highs.
Buyers are still likely to keep pushing the price higher; also, I do not think it is advisable to bet against a trend as powerful as the one we are seeing. With the previous paragraph I only try to advise what the graphs say, and at the current point, a correction is healthier.
Ethereum still has room to make a profit
While Bitcoin begins to show weakness for the short term, altcoins begin to benefit from the entry of capital to their markets.
ETH’s daily chart shows that its room for price increases is still wide, considering that the rally it is making is a medium-term boost, and should be looking for a new yearly high in the near future.
In addition to this, ETH 2.0 already has a launch date, an event that is undoubtedly increasing buyer interest in this crypto, so if we talk about fundamental bases that support the rally, clearly this is one of them.
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