Cryptocurrency Market Overview For November 19, 2018

The cryptocurrency market continued its decline that had begun in the middle of the previous week. For Monday, the total market capitalization declined by BUSD 25, falling from the level of BUSD 180-182 down to the level of BUSD 155-157, thereby testing its annual minimal
The ВТС share in the total market capitalization remained at the same level – 52.9%. It means that, in percentage terms, all coins are falling in price proportionally to their share.

Cryptocurrency market is diving

Once, in a few hours and without any ample reason, this market lost around BUSD 20 after a long flat in a narrow range, it became evident that it would not avoid another collapse.
The market that is full of unsupported by any fundamental factors panic, cannot keep steady-state condition for a long time. No news released by SEC or by the platforms’ developers could push the capitalization up. Only one spark was enough to push the market out of its steady-state condition.

The formal reason for it was the ВСН fork, which should have got through November 15, but analysts agree that the trigger was the fact that BTC had put some large sums on the market. On Monday, November 19, all cryptocurrencies listed in TOP-100 (except of USD Coin) were in the red.

As expected, Bitcoin Cash became a daily decrease leader – it has lost a little more than 43% within 24 hours. Owing to disagreements between the developers, the conducted hard-fork has only deepened the crisis of once separated from BTC token. If, at the beginning of the previous week, the BCH price was in the range of USD 500-510, then, as at 20.11.18, the price has fallen down to USD 215, that is nearly double. Such the sharp decline has moved ВСН from 4th position to 5th position, giving Stellar a change to get closer to the top three.

TOP-3 coins also follow ВСН. For the past day, ВТС has lost more than 28%, falling down to the level of USD 4500-4600. The last time this coin reached this level was more than a year ago – in the early October 2017. ЕТН has also updated its minimum, falling down to the level of USD 137 – its minimum value since May 2017. So far, Ripple demonstrates relatively strong performance. Its price was affected by panic to a lesser degree.

Cryptocurrency market prospect forecast. It is safe to say that the capitalization decline will continue for at least another two days. This will be facilitated by several factors:

- Token panic selling. If, at the moment of a flat, investors were having some hope for a small growth, then now, when there is a clear descending trend, mass sales will definitely start “until better days”.
- Slowdown of miners’ activity. ASIC-based mining becomes pointless with the current value of coins with POW consensus algorithm. Nvidia has already reported some serious drop in its mining equipment sales. According to the Susquehanna Company’s report, production of ВТС and ЕТН is no longer profitable – miners disconnect their equipment and the hashrate of the network falls down.

The level of BUSD 125-130 may become another psychological support level – such capitalization appeared in September of the previous year. It is already unquestionable that the level of BUSD 150 will be broken by the end of November 20, but the belief in cryptocurrencies is still pretty strong.

However, there are more pessimistic forecasts, according to which ВТС may fall down to the level of USD 1500, amounting to the capitalization on the level of about BUSD 50. Only time can tell which scenario will take place. But what we can surely say is that it is better to take short positions on the cryptocurrency market.