Cryptocurrencies Retreat from Highs as Upside Swing Pauses

16 Nov 2021 · 3rd Party Analysis

Cryptocurrencies Retreat from Highs as Upside Swing Pauses

WRITTEN BY ThorFX

In Summary:

  • Cryptocurrencies pull back from last week’s record highs in a weak start of the week
  • Bitcoin price dips below $61,000 and remains pressured on Tuesday as markets turn lower

What’s Trading in the Markets?

The wider cryptocurrency market retreated from its record highs last week as traders turned defensive early in the week. Further, the price of bitcoin pulled back on Monday as it erased its intraday gains and finished the session down about 4%. In other words, the orange coins declined from a daily high of $66,300 to a closing of $63,700.

To this end, the price of the original cryptocurrency hovers about 10% from its all-time high set last Wednesday, Nov. 20. Back then, bitcoin peaked at $69,000 per coin as the broader digital asset market topped $3 trillion in value.

Presently, in the early hours of Tuesday’s session, bitcoin’s price gravitates toward $61,000, lower on the day by about 4%. The crypto market, on the other hand, floats slightly around $2.8 trillion.

Ether, the second-biggest cryptocurrency, also logged a decline on Monday. More specifically, the Ethereum token jumped to a session high of $4,765 on Monday but gave away the gains. As a result, the price of Ether finished slightly lower on the day, at $4,580 per coin.

Dive Deeper in the Financial World

In the meantime, stocks and forex pairs resumed their usual jitters from recent sessions. In more detail, Wall Street investors opened the trading week playing defensive strokes as uncertainty for the outlook weighed. Persistent inflation pressures, prospects for higher interest rates, and imminent stimulus withdrawal by the Federal Reserve cast a shadow on the growth narrative.

Moreover, supply-chain shortages and higher costs for business operations have dented the quick economic expansion.

With this in mind, the 30-stock Dow Jones Industrial Average slipped moderately on Monday. Similarly, the S&P500 was circling near the flatline during the session and ultimately ended the day in the red. In addition, the Nasdaq Composite was also on the losing side on the day.

In individual stocks, Tesla was among the biggest decliners. The electric-car maker slipped about 5% Monday as Elon Musk is expected to accelerate his share sale. More precisely, he needs to offload an additional $8 billion worth of stock to make good on his promise to sell 10% of his Tesla holdings.

What to Expect in the Markets?

Uncertainty over the economic outlook caused traders and investors to flock to the US dollar. As a result, the greenback continued its climb against major peers. For example, the EUR/USD dipped to a new low of 1.1360. The level was last seen near the end of July 2020, or about 16 months ago.

This said, traders will keep an eye on the forex market as there will be trading opportunities for short-term and swing traders.

Additionally, bitcoin bulls might look for chances to enter the crypto market as they try to time their bets and buy the dip.

Economic News Today (EST time)

On Tuesday, the US releases its retail sales report at 08:30 am. Later, the European Central Bank President Christine Lagarde will have a speech at 11:10 am. Ms. Lagarde will also have another chance to address the markets at 08:20 pm today. The events could create increased volatility in the financial markets.

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