After a fantastic performance last week, cryptocurrency markets are still holding support today. Ethereum has gained new support at $1,500, while Bitcoin is still trading at $20k support level. Let’s look at the recent news that has had an impact on the markets.
Key Notes:
- The cryptocurrency markets are currently trading sideways following a bull run last week.
- The team immediately launched an upgrade to quickly fix a bug that arose in Bitcoin’s lightning network.
- Regarding price movement, Ethereum outperforms BTC and keeps displaying bullish characteristics.
- BTC and ETH can hold support despite the declining trading volume and are likely to attempt another bull run next week.
Crypto News Market Update
One important Bitcoin-related piece of news concerns the Lightning Network, which issued an emergency upgrade on November 1st after a glitch led nodes to move out of sync with the chain.
The most recent version includes an emergency upgrade that has been added on top of the most recent release, according to the Lightning Network’s official GitHub:
“This is an emergency hot fix release to fix a bug that can cause lnd nodes to be unable to parse certain transactions that have a very large number of witness inputs.
This release contains no major features, and is instead just a hotfix applied on top of v0.15.3.”
As transactions continued to verify, as usual, the flaw didn’t seriously harm Bitcoin or its ecosystem.
The Lightning Network development team responded quickly, preventing the bug’s effects from spreading further. Since Bitcoin is still trading around the $20k level, this may have contributed to its underperformance in terms of price when compared to Ethereum and other crypto assets.
Ethereum’s Post-Merge Market Update
According to a Cointelegraph study, ETH, the second-largest cryptocurrency by market cap, continues to show bullish indicators:
“The bullish cues emerge primarily from a classic technical setup dubbed a “cup-and-handle” pattern. It forms when the price undergoes a U-shaped recovery (cup) followed by a slight downward shift (handle) — all while maintaining a common resistance level (neckline).”
The unpredictable cryptocurrency markets don’t lend themselves well to technical analysis, but any favorable indicators support the market and give Ethereum even more momentum in the right direction.
Conclusions
The trading volume for BTC and ETH is marginally lower today, with ETHUSD volume down 23% and BTCUSD volume down 10%. Although the drop in trading volume isn’t a bullish indication, the fact that existing support is still holding is encouraging for cryptocurrency bulls.
Before the market tries to move again the following week, we expect to see more tests of Ethereum’s $1,500 support and Bitcoin’s $20k support. It’s likely that BTC will try to break beyond $21,000, and ETH will aim for $1,600 if the current values persist through the weekend.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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