Keeping it Warm

Hi Everyone,

As we head into the winter months, people’s minds naturally turn to the age-old question, how are we going to stay warm?

The price of natural gas is currently skyrocketing in anticipation, but the crypto community is not standing still and is looking at more innovative solutions.

The below device, which was sent to me on social media, is a contemporary prototype that was designed in Canada to mine bitcoin while heating your house at the same time.

Of course, no sooner did I repost than someone responded with some much more advanced and nicer looking models that have recently hit the market in Ukraine.

This, especially in places where it’s cold and electricity is cheap is an excellent way to reduce heating costs and help keep bitcoin decentralized at the same time.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • APEC Disappointment
  • Commodity Underpinned
  • Crypto Buyers Market

Please note: All data, figures & graphs are valid as of November 19th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Stocks remain in deep question mark territory today after some sour updates from the Asia-Pacific Economic Cooperation summit. Spoiler alert, the US and China, didn’t cooperate.

Despite this, the China 50 and the Nikkei are rising today but the European opening was lackluster. The following four charts should give us a good idea of just how confused the global markets have been over the last month.

As we can see, there have been wild swings in both directions but at this point it isn’t really clear if the markets are trying to find the bottom or the top.

Commodity Underpinned

It’s been a pretty hectic year so far for commodities as well. Oil is definitely looking for a floor but at this point, it’s still not clear if $55 will hold. News about OPEC and production are spinning through financial media but in my mind, this has to be related to the slide we saw in precious metals earlier this year.

Underpinning the commodities is a rising US Dollar. So more than anything it’s likely that Fed policy is driving this market. The Greenback has been forming a steady support line (yellow line below) for itself over the last few months as the Fed talks rate hikes.

Crypto Buyers Market

After the breakout we saw last week, it seems the short-term price action has continued in the downward direction this morning.

The fundamentals remain good. Just yesterday we saw a new crypto mass investment vehicle from Switzerland…

Also, over the weekend we’ve heard from one of the world’s most well-known bankers, Herman Gref that…

This is the man largely responsible for unifying the fragmented Russian banking system by implementing technological solutions, so he should know what he’s talking about.

On the other side, Gref sees the mass adoption of bitcoin and other decentralized currencies as far off as a decade as he feels that centralized countries could try to fight it.

On the technical side, the massive descending triangle that’s been forming since the beginning of the year has now clearly been broken to the downside and bitcoin is trading at prices that haven’t been seen in over a year.

The thing is, now that the major level has been broken, we really have no indication from the chart how far it can go.

The next logical level of support is at $5,000 but if that doesn’t hold, the next logical support level isn’t until $3,500. Some analysts are even calling for $1,500.

Transactions on the Bitcoin blockchain continue to rise and we’re now close to three transactions per second. Despite spiking during the breakout last week, volumes on the crypto exchanges, have remained fairly consistent through the weekend.

As far as clients in eToro are concerned, we can actually see a slight uptick (red circle) in the number of bitcoin being held by our clients since the November 14th breakout.

With all the falling prices lately, this definitely fits the definition of a buyers market.

Let’s have an excellent day ahead!

Best regards,
Mati Greenspan
Senior Market Analyst

Connect with me on….

eToro: @MatiGreenspan | Twitter: @MatiGreenspan | LinkedIn: MatiGreenspan | Facebook:MatiGreenspan

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