The cryptocurrency market is extending its recent rally during the early stages of November. Meanwhile, Ethereum remains in focus over the rest of the altcoins and Bitcoin, which is noteworthy. The second ‘crypto’ by market capitalization continues in the range of historical highs around $4,500 on Wednesday, after touching $4,600 on Tuesday. Analysts are targeting $5,000 now, a price level that the consensus expects it to reach before the end of the year, while for Bitcoin the focus remains on $70,000.
Green tinges the rest of the tokens, with notable rises for Ripple or Solana, while total capitalization hits one record after another to the vicinity of $2.8 trillion. Shiba Inu stands out as the only token in the red, and suffers from market distrust towards this project after the scam of the SQUID token, inspired by the Squid Game, which collapsed on November 1, with losses for investors amounting to about $3 million. Some experts point to Shiba Inu as the next to go bust.
On the other hand, Ethereum has recovered more than 160% from the lows of last July, when the market managed to bottom out at around $1.700 and there was a significant accumulation of buying afterwards. The upswing is due to the October Altair update, which is a step closer to the transition to Ethereum 2.0, involving a proof-of-stake algorithm change, replacing the current proof-of-work. The expectation that will be generated around this transition may drive the price up to $6,000 and then $14,000.
In other news, Bitcoin has bounced back eagerly to $60.000, where it was supported in recent sessions despite momentarily losing that price last week. “We will have to keep an eye on market developments in the coming hours and/or weeks, as we can see how strong hands took the advantage to join Bitcoin and Ethereum at the bottom created in both cryptocurrencies after the May crash, so we could see new records,” experts at IG Markets stated.
Regarding the daily chart on Bitcoin/dollar, the price of the cryptocurrency is trading above $63,000 after gaining more than 100% from the July lows, taking the edge off the downward pressure of the last few months. Tuesday’s close above the $63,500 resistance level sends good feelings to experts, but Craig Erlam, analyst at Oanda, points out that its behavior at this level “could tell us whether we’re seeing a corrective rally as part of a deeper pullback in the Bitcoin price, or another run for record highs.” “Whichever it is, I don’t think it will be long before we’re seeing the latter as there’s so much hype in the space right now,” he adds.
“After settling above the $30,000 mark as an important psychological level, demand managed to wipe out supply by carrying out a process of accumulation of positions on that support, a situation that favored the cryptocurrency to propel itself to the $52,900 figure settled during the first days of September,” IG Markets analyze.
Finally, “Bitcoin will now have the challenge of consolidating the $60,000 level and will continue to be in the eye of many investors, who will try to take advantage of the volatility of the cryptocurrency to seek returns for the very short term, a cryptocurrency that right now directs all eyes to the $68,000 level,” the experts stress.