- On Wednesday, bitcoin (BTC) rose by 2.44% to finish the day at $16,613.
- Investor fears towards FTX contagion eased additional on Wednesday, supporting a breakout session.
- However, the Fear & Greed Index fell from 22/100 to twenty/100, reflecting investor angst over the FTX collapse and certain shift within the regulatory panorama.
On Wednesday, bitcoin (BTC) rose by 2.44%. Following a 2.87% achieve from Tuesday, BTC ended the day at $16,613. Notably, BTC averted sub-$16,000 for the primary time in three classes.
A blended begin to the day noticed BTC fall to an early morning low of $16,168. Steering away from the First Major Support Level (S1) at $15,791, BTC rallied to a late excessive of $16,682. BTC broke by means of the First Major Resistance Level (R1) at $16,469 to finish the day at $16,613.
FTX contagion danger eased additional on Wednesday, offering much-needed crypto market assist. Following the information of FTX holding $1.24 billion in money reserves, former FTX CEO Sam Bankman-Fried raised hopes of traders saving the corporate.
In a letter to staff, Bankman-Fried mentioned,
“Maybe there still is a chance to save the company. I believe that there are billions of dollars of genuine interest from new investors that could go to making customers whole. But I can’t promise you that anything will happen because it’s not my choice.”
The letter adopted stories of Tron’s Justin Sun and Ripple’s Brad Garlinghouse exhibiting curiosity in buying FTX property. Coupled with the reported money holding of $1.24 billion, traders are hoping that the collapse of FTX may have a restricted impression on collectors.
Overnight, the FOMC assembly minutes delivered additional crypto market assist. Talk of taking the foot off the gasoline supported riskier property forward of the vacations, with the NASDAQ Composite Index rising by 0.99%. However, US financial indicators upset, limiting the upside for the NASDAQ.
There are not any US stats to think about at the moment, with the US markets closed for Thanksgiving.
NASDAQ – BTCUSD 241122 Daily Chart
The Fear & Greed Index Falls however Avoids Sub-20/100
Today, the BTC Fear & Greed Index fell from 22/100 to twenty/100. The Index failed to reply to bullish BTC classes for the second consecutive session. The fall to twenty/100 additionally got here regardless of BTC avoiding sub-$16,000 for the primary time in three days.
While sentiment towards FTX contagion has improved, the Index displays investor uncertainty towards the probably fallout from the FTX collapse.
On Tuesday, the Judge presiding over the FTX chapter case agreed to redact the identities of FTX purchasers. The redactions depart traders dealing with uncertainty over whether or not one other large title will fall.
While falling to twenty/100, avoiding sub-20/100 stays the important thing for the BTC bulls. 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 down 0.34% to $16,556. A blended begin to the day noticed BTC rise to an early excessive of $16,619 earlier than falling to a low of $16,556.
BTCUSD 241122 Daily Chart
BTC must keep away from the $16,488 pivot to focus on the First Major Resistance Level (R1) at $16,807. A transfer by means of the Wednesday excessive of $16,682 would sign a bullish session. However, FTX updates should be market-friendly to assist a breakout session.
In the occasion of an prolonged rally, BTC would probably take a look at the Second Major Resistance Level (R2) at $17,002. The Third Major Resistance Level (R3) sits at $17,516.
A fall by means of the pivot would deliver the First Major Support Level (S1) at $16,293 into play. Barring one other prolonged sell-off, BTC ought to keep away from sub-$16,000 and the Second Major Support Level (S2) at $15,974. However, detrimental FTX-related information may ship BTC to sub-$15,000.
The Third Major Support Level (S3) sits at $15,460.
BTCUSD 241122 Hourly Chart
Looking on the EMAs and the 4-hourly candlestick chart (under), it was a bearish sign. This morning, bitcoin sat on the 50-day EMA, at the moment at $16,542. The 50-day EMA flattened on the 200-day EMA, whereas the 100-day EMA eased again from the 200-day EMA, delivering blended alerts.
A breakout from the 50-day EMA ($16,542) would assist a run at R1 ($16,807) and $17,000. However, a fall by means of the 50-day EMA ($16,542) would deliver S1 ($16,293) and sub-$16,000 into play.
BTCUSD 241122 4 Hourly Chart