The month of November started with lots of bullish strength, as both Bitcoin and other cryptocurrencies continually broke its previous all time highs. Eventually the rally peaked, as Bitcoin surpassed the $69,000 level. Having breached the previous all time high, the price started a correction, as bears pushed the price down to $53,000 level.
The initial correction could be on one hand a consequence of SEC rejecting VanEck’s spot Bitcoin ETF, which temporarily fueled a potential negative sentiment on the markets. On the other hand, looking purely from the technical perspective, correction after the price reaches a new all time high, can be expected as some traders will always take out their profits.
The last massive sell off happened on Friday (26th November), after new COVID-19 variant rumors which led Bitcoin into the $53,000 territory again. The price bounced from the MA100 line on a daily time frame on the following day, which could point to the reversal or at least temporary stop in the downtrend.
The question is whether MA100 support will be strong enough to give the bulls strength to push higher (either directly or after a retest) or will the bears continue to dominate further. While on one hand lots of traders are expecting a move below $53,000, on the other hand the crowd rarely gets what it wants, as the market usually finds a way to surprise investors. Looking from that perspective, we can expect a reversal before breaching the $53,000 level.
Now let’s look at developments here at NewsCrypto, as there have been quite a few. The first one to mention is the release of On-Chain Analytics Tool, which features all the key information on Bitcoin, Ethereum and Stablecoins. It gives you access to aggregated exchange reserves, netflow, miners outflow and hashrate for Bitcoin, as well as aggregated exchange reserves and netflow for Ethereum. Additionally you are also able to see exchange reserves and issued supply for all Stablecoins.
Our tool gives you an edge in trading by showing you all the crucial on-chain data in one place, telling you what is going on behind the scenes, letting you know what the market is likely to do next, so you can adjust your exposure accordingly. Exchange reserves and netflow data give you an insight into the sell-off probability, while stablecoin data show you how much money is getting ready to step in and buy.
All of the data provided can be actionable, but the easiest data to interpret and probably the most important in terms of relatively short-term price movements are exchange netflows. Often, outflows of BTC or ETH can mean that market participants are moving their coins from exchanges to their cold storage wallets, which is reducing the selling pressure. Contrarily, inflows of coins onto exchanges can signal increased sell pressure, as coins are moving from cold storage to exchanges, where they will most likely get sold, which is especially true during times of instability.
We’ve also updated our Backtesting Bot Tool. The majority of you are probably already familiar with our revolutionary tool, as it has been around for over a month, but let’s just quickly dive into it for the new members of the community. The tool uses our own proprietary algorithms to automatically detect the most important patterns on the price charts of top cryptocurrencies. Apart from simply detecting the patterns, it also calculates the technical price target and looks at how many of the patterns hit it, giving you a success rate expressed as a percentage.
Originally the Bot had the option of backtesting three different patterns, but this week we’ve added two more. The initial list of Head and Shoulders, Double Top and Double Bottom patterns was expanded with Ascending and Descending Triangle Formations. The Tool gives everybody an ability to test even more strategies without having either extensive programming knowledge or wasting time on incorporating data samples from charts, all in a few clicks in a matter of seconds. This is extremely useful, as the performance of different patterns can vary wildly in different market conditions.
In November we were also quite busy with burning our tokens, as we’ve held not one, but two burning events to show our commitment toward scarcity. We’ve burned 2 million of NWC tokens on top of the 20% of all subscription fees that we remove from circulation regularly. Having promised 10 burns in 2021, you can expect 3 more to come hand in hand with important milestones in December. Make sure you follow us on our Official Twitter profile, where we’ll reveal even bigger burning events planned for the years ahead. Our team will always show commitment to increasing the value of the holder's coins.
Last week we also created an Official Twitter page for the upcoming Mercury Copy Trading Platform, where you will be able to access content specifically tied to the Copy Trading Platform, its features, developments and updates. To celebrate this occasion we’ve also prepared a giveaway with a prize pool of 1000 NWCs. Having been announced yesterday, five lucky winners have already received their reward of 200 NWC into their wallets. Congratulations to the winners and, of course, get ready for even more giveaways in the future, as we’ll always make sure we give back to our community.
Last, but not least, the NWC token was listed on the Crypto.com DeFi wallet, which gives holders another option of storage for their tokens, specifically for the Ethereum (ERC20) version. It is a non-custodial wallet, like our native NewsCrypto mobile wallet or MetaMask, that puts you in complete control of your crypto as you’re given your own private keys, therefore you don't have to rely on a third party (custodian) to keep your crypto safe.