Key Insights:
- On Thursday, bitcoin (BTC) slipped by 0.04%, ending a two-day mini-winning streak.
- While FTX contagion concern subsided this week, contagion danger and regulatory danger remained crypto headwinds, limiting any upside.
- The Fear & Greed Index held regular at 20/100, reflecting investor angst over the FTX collapse and sure shift within the regulatory panorama.
On Thursday, bitcoin (BTC) slipped by 0.04%. Partially reversing a 2.44% acquire from Wednesday, BTC ended the day at $16,606. Notably, BTC averted sub-$16,000 for the second consecutive session.
A blended begin to the day noticed BTC rise to an early morning excessive of $16,804. Coming up in opposition to the First Major Resistance Level (R1) at $16,807, BTC fell to an early afternoon low of $16,463. Steering away from the First Major Support Level (S1) at $16,293, BTC revisited $16,669 earlier than falling again into the purple.
It was a quiet Thursday session, with the US Thanksgiving Holiday leaving buying and selling volumes on the decrease aspect.
BTC Trading Volume 251122
Despite the quiet session, FTX contagion danger eased additional on Thursday, stopping a BTC return to sub-$16,000. Following the information of FTX holding $1.24 billion in money reserves, hopes stay that debtors will find extra FTX belongings to scale back the burden on collectors.
On Thursday, information of Binance CEO CZ pledging $1 billion for FTX-impacted crypto corporations was market constructive. In an interview with Bloomberg TV, CZ additionally stated that Binance would make one other bid for Voyager Digital.
Following the FOMC assembly minutes from Wednesday, there have been no US financial indicators for buyers to think about on Thursday. With the US Thanksgiving Holidays, the US markets will shut early at this time.
While the NASDAQ might present course, a scarcity of US Economic Indicators will probably depart the crypto market within the palms of FTX-linked information updates.
NASDAQ – BTCUSD 251122 Daily Chart
The Fear & Greed Index Holds Steady at 20/100
Today, the BTC Fear & Greed Index held regular at 20/100. A spread-bound BTC session left the Index flat for the day. BTC didn’t revisit $17,000, reflecting the consequences of FTX contagion danger and elevated regulatory danger on investor sentiment.
Until there’s readability on the whole impression of the FTX collapse on the crypto market, we anticipate the Index to hover inside the Extreme Fear zone.
While sitting at 20/100, avoiding sub-20/100 stays the important thing for the BTC bulls. A fall to sub-20/100 would see BTC face the chance of sub-$10,000.
Bitcoin (BTC) Price Action
At the time of writing, BTC was down 0.52% to $16,520. A blended begin to the day noticed BTC rise to an early excessive of $16,617 earlier than falling to a low of $16,520.
BTCUSD 251122 Daily Chart
Technical Indicators
BTC wants to maneuver by the $16,624 pivot to focus on the First Major Resistance Level (R1) at $16,786 and the Thursday excessive of $16,804. A return to $16,800 would sign a bullish session. However, FTX-linked updates must be market-friendly to help a breakout session.
In the occasion of an prolonged rally, BTC would probably take a look at the Second Major Resistance Level (R2) at $16,965 and resistance at $17,000. The Third Major Resistance Level (R3) sits at $17,306.
Failure to maneuver by the pivot would go away the First Major Support Level (S1) at $16,445 in play. Barring one other prolonged sell-off, BTC ought to keep away from sub-$16,000. The Second Major Support Level (S2) at $16,283 ought to restrict the draw back. However, destructive FTX-related information might ship BTC to sub-$15,000.
The Third Major Support Level (S3) sits at $15,942.
BTCUSD 251122 Hourly Chart
Looking on the EMAs and the 4-hourly candlestick chart (under), it was a bearish sign. This morning, bitcoin sat under the 50-day EMA, at the moment at $16,554. The 50-day EMA flattened on the 200-day EMA, whereas the 100-day EMA fell again from the 200-day EMA, delivering blended alerts.
A breakout from the 50-day EMA ($16,554) would help a transfer by R1 ($16,786) to focus on R2 ($16,965) and $17,000. However, a failure to maneuver by the 50-day EMA ($16,554) would go away S1 ($16,445) in play.
BTCUSD 251122 4 Hourly Chart
