Key Insights:
- On Wednesday, bitcoin (BTC) fell by 1.37%. Marking the eighth loss from eleven classes, BTC ended the day at $16,654.
- News of Genesis Trading freezing redemptions and the NASDAQ Composite Index despatched BTC and the broader crypto market into the purple.
- The Bitcoin Fear & Greed Index fell from 23/100 to twenty/100 as contagion worry resurfaced.
On Wednesday, bitcoin (BTC) fell by 1.37%. Partially reversing a 1.56% achieve from Tuesday, BTC ended the day at $16,654. Notably, ended the day at sub-$17,000 for the sixth time since 2020.
A blended begin to the day noticed BTC rise to an early excessive of $17,002. However, arising in need of the First Major Resistance Level (R1) at $17,164, BTC fell to a mid-afternoon low of $16,347. BTC fell via the First Major Support Level (S1) at $16,575 earlier than wrapping up the day at $16,654.
US financial indicators failed to supply help, regardless of a 1.3% leap in retail gross sales. News of Genesis suspending redemptions hit the wires forward of the retail gross sales numbers, sending the BTC deeper into the purple.
Adding to the market angst have been updates from Target Corp (TGT) and Micron Tech (MU), which left the US fairness markets in unfavorable territory. NASDAQ-listed Micron Tech (MU) introduced plans to cut back reminiscence chip provides and make extra cuts to its capital spending plans.
Later at present, US jobless claims and Philly Fed Manufacturing numbers might affect. However, additional indicators of contagion would overshadow constructive stats and a NASDAQ Index restoration of Wednesday’s losses. This morning, the NASDAQ mini was up 39.5 factors.
NASDAQ – BTCUSD 171122 5 Minute Chart
The Fear & Greed Index Falls Deeper into the Extreme Fear Zone
Today, the Fear & Greed Index fell from 23/100 to twenty/100. The information of Genesis Trading freezing redemptions weighed on investor sentiment mid-week. Contagion danger stays a major danger to the crypto market close to time period, leaving buyers delicate to information of freezes.
However, the Index averted sub-20 regardless of the Genesis information, suggesting investor resilience. The Binance restoration fund and curiosity in backing the fund doubtless restricted the harm.
Attending a convention in Abu Dhabi, Binance CEO CZ reportedly stated,
“There are players that have strong financials and we should band together; we’ve got significant interest so far.”
CZ didn’t present names of establishments or exchanges or particulars of the restoration fund by way of the mechanism, corresponding to present measurement and qualification standards.
However, CZ did say that extra particulars concerning the fund will probably be out there over the subsequent two weeks.
The Index would wish to keep away from sub-20/100 to help a return to 40 and a transfer into the impartial zone. However, a fall to sub-20/100 would see BTC face the danger of sub-$10,000.
Bitcoin (BTC) Price Action
At the time of writing, BTC was up 0.10% to $16,671. A spread-bound begin to the day noticed BTC fall to an early low of $16,650 earlier than rising to a excessive of $16,700.
BTCUSD 171122 Daily Chart
Technical Indicators
BTC must keep away from the $16,668 pivot to focus on the First Major Resistance Level (R1) at $16,988 and the Wednesday excessive of $17,002. A return to $17,000 would sign a bullish session. However, the path will hinge on FTX updates, contagion information, and US stats.
In the case of an prolonged rally, BTC would doubtless check the Second Major Resistance Level (R2) at $17,323 and resistance at $17,500.
The Third Major Resistance Level (R3) sits at $17,978.
A fall via the pivot would deliver the First Major Support Level (S1) at $16,333 into play. Barring one other prolonged sell-off, BTC ought to keep away from sub-$16,000. The Second Major Support Level (S2) at $16,013 ought to restrict the draw back. However, unfavorable FTX-related information might ship BTC to sub-$15,000.
The Third Major Support Level (S3) sits at $15,358.
BTCUSD 171122 Hourly Chart
Looking on the EMAs and the 4-hourly candlestick chart (beneath), it was a bearish sign. This morning, bitcoin sat beneath the 50-day EMA, at present at $17,301. The 50-day EMA eased again from the 200-day EMA, with the 100-day EMA falling again from the 200-day EMA, delivering bearish indicators.
A BTC transfer via R1 ($16,988) would give the bulls a run on the 50-day EMA ($17,301) and R2 ($17,323). However, failure to maneuver via the 50-day EMA would depart BTC underneath strain and S1 ($16,333) in view.
BTCUSD 171122 4 Hourly Chart
