Written By: Owain Higham

 

 

 

As a new trading week begins on the second week of November, ETHUSD kicks it off with freshly printed all time highs. At the time of writing, the pair is trading around $4,750. BTCUSD also started with a big up move, the pair trading nearly double the percentage return on the day vs ETHUSD at around +4%, but still trading just $1k under its ATHs.

 

 

 

Why is ETHUSD Printing New ATHs?

There are countless fundamental drivers for why the crypto markets might be rising right now, some of them valid, some of them irrelevant. At Bookmap, we care solely about the order flow, so let’s look to the heatmap for clues.

 

 

As we can see on the above Multibook chart, there have been multiple episodes of large and aggressive buying at market. This is one of the core drivers of price changes, because the buyers are telling the market they want ether at that very moment in time, at any price. This is what is currently sending prices higher.

 

Prices are also trading above the VWAP (Volume Weighted Average Price, reset every 24 hours). This is a good signal that the current trend is up.

 

 

 

Why is BTCUSD Rising?

There are no certainties in markets, but looking at this often very volatile market with the aid of Bookmap can certainty give you a better picture of the potentialities. Let’s see what the chart could be telling us today.

 

 

As we can see, the bids at $60,000 managed to absorb large selling on Sunday, with large buying entering the market shortly after.

 

Very large and aggressive buying occurred again early on Monday morning (European time), resulting in price a appreciation of over $2k in one and a half hours.

 

 

 

Can ETHUSD Go Higher?

 

Most indicators suggest the uptrend is still intact. The VWAP (Volume Weighted Average Price) is acting as support at the time of writing, and aggressive buyers are still willing to enter the market.

 

However, both the $4,800 and $5,000 levels have extremely large offers in the order book, especially at the latter price level. The offers at these levels would need to start pulling and very large aggressive buying enter the market to push prices higher.

 

As always, the dynamics of the market are constantly changing, and your trading strategy should always be based on your own personal risk tolerance, as well as vigorous testing. The heatmap simply provides a light in the tunnel.

 

 

 

Can BTCUSD make new all time highs today?

 

Prices are still trading just above the VWAP, and bids are entering the order book at the $65,000 price level. However, there are offers just above current prices at $67,000, and they have been getting slightly larger since the start of the day.

 

There are more offers at $68k, $69k, and $70k, the latter level being the largest offers level. Another risk to this currently bullish order flow is the fact that the bids at $60,000 (from where this recent up move started) seem to be pulling and now offer less support. If prices break lower through the $65k bids, then the $60,000 level will be the next level to watch.

 

 

 

Disclaimer: This content is for informational purposes only and is not trading advice.