In this week's episode, analysts tell us how low BTC could go — and the levels that need to be reclaimed for further rises. Plus, an easy-to-understand look at the rest of the crypto news.
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CoinMarketRecap, hosted by Connor Sephton, aims to break down the week's crypto news in a fun and accessible way.
Research continually shows that consumers find cryptocurrencies difficult to understand — and we're determined to change that.
Here's what happened on this week's show:
Is Bitcoin's Bull Run Over?
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Bitcoin has suffered a brutal correction since hitting all-time highs of $69,000 on Nov. 10.
The world's biggest cryptocurrency sunk to lows of $59,000 on Tuesday — and showed weakness as it traded in a tight range.
Friday subsequently saw a further plunge to $55,700. Indeed, some analysts had predicted that a further correction was on the horizon.
Nick Cawley, an analyst at DailyFX, told the podcast that this pullback is "certainly not something to worry about" — and argued that some long-term holders might see this as an opportunity to increase their holding.
He believes BTC owners should be "cognizant" of a move down to $52,000 or $53,000 — and said hitting this level "still doesn't really break the bullishness that we've seen since the beginning of the year."
When asked when this correction might turn into something more nefarious, he said:
"For me, the market wouldn't be broken in a bad way until we actually got below $40,000. So we still have quite a way to go on the downside."
We were also joined by Justin Bennett, the founder of Cryptocademy. He said the market is currently being ruled by a "lot of indecision" — and believes that Bitcoin's bull cycles are beginning to lengthen. He added;
"Overall there's been a lot of talk of Bitcoin going parabolic over the next few weeks and into December 2021. And a lot of times when you see that much bullish rhetoric out there, the market does the opposite. So for me, I'm kind of looking at a very sideways November, potentially a move higher in December, but not the move that everybody's expecting. I think we're going to get some consolidation here and then the true breakout happens in maybe December or January next year."
Justin added that the days of parabolic moves and going straight up are over — and while he does think Bitcoin will have a "blow off top" eventually, the analyst ultimately thinks that the cryptocurrency will see a "gradual push higher" for the next six to ten months.
He believes that we can only really start entertaining the idea of the bull market being over if BTC slid to $50,000 or $47,000 at the lowest.
Overall, Justin says $63,000 is a crucial level — and says meaningfully getting above $70,000 on higher-than-normal trading volume would validate the view that the bull market is continuing.
News Roundup: China Woes, ConstitutionDAO, Quentin Tarantino
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CoinMarketCap's Molly Jane Zuckerman also joined us to discuss the rest of this week's crypto headlines.
We began by focusing on a news conference given by a Chinese official, which came just before BTC plunged 7% to $60,800 earlier this week.
The country is continuing to clamp down on mining, and state media reports that 10% of crypto businesses are still in operation despite the tough restrictions imposed by Beijing.
Next, attention turns to ConstitutionDAO — the decentralized autonomous organization that raised millions of dollars in order to participate in an auction for a rare copy of the U.S. Constitution.
And last but by no means least, Quentin Tarantino is gearing up for a legal battle with the Hollywood producer Miramax. The legendary director is preparing to release NFTs inspired by his 1994 hit film Pulp Fiction, but Miramax has filed a lawsuit because it was planning to do the same.
Animal Charity Receives Huge ETH Donation
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Edinburgh Dog and Cat Home has received what's believed to be the biggest cryptocurrency donation in Scotland's history.
It received 26 ETH — worth about $105,000 at the time of writing — from Pawthereum, a crypto organization supporting animal welfare charities.
We're joined by Pawthereum's Matt C-Roy, and Edinburgh Dog and Cat Home's Nicola Gunn, to discuss how the funds are going to be used.
All of this comes ahead of Crypto Giving Tuesday on Nov. 30, when digital asset owners are encouraged to make a donation to good causes.
Nicola said that crypto allowed the charity to raise money in new ways when the coronavirus pandemic ground fundraising events to a halt.
