Key Insights:
- On Tuesday, bitcoin (BTC) rose by 2.87%, ending a two-leasing streak.
- FTX Contagion danger abated as information updates on FTX property filtered by means of to the crypto news wires.
- The Fear & Greed Index held regular at 22/100, with contagion danger ever-present regardless of Tuesday’s market acquire.
On Tuesday, bitcoin (BTC) rose by 2.87%. Partially reversing a 3.15% slide from Monday, BTC ended the day at $16,217. Notably, BTC fell to sub-$16,000 for the second consecutive session.
A combined begin to the day noticed BTC fall to a mid-morning low of $15,616. Steering away from the First Major Support Level (S1) at $15,400, BTC rose to an early afternoon excessive of $16,294. BTC broke by means of the First Major Resistance Level (R1) at $16,218 earlier than falling again to sub-$16,050. However, discovering late help, BTC retested R1 earlier than easing again.
FTX contagion danger continued to stress investor urge for food on Tuesday following the information of Genesis delivering a chapter warning.
However, market situations improved by means of the late morning. News of FTX holding $1.24 billion in money reserves eased investor angst, with reviews of Tron CEO Justin Sun and Ripple CEO Brad Garlinghouse focusing on FTX property a constructive.
The money reserves and asset gross sales ought to ease the losses of the highest 50 collectors, which have $3.1 billion in exposures to FTX.
However, regardless of the information, FTX contagion stays an ever-present menace to the broader market. On Tuesday, the Judge presiding over the FTX chapter proceedings agreed to the redaction of FTX shopper names. The redaction will depart buyers grappling with uncertainty over doable FTX-linked platforms that will face liquidity points.
The NASDAQ Composite Index additionally discovered help on Tuesday. Easing fears of a vacation bust on shopper spending drove demand for riskier property. The NASDAQ rose by 1.36%. However, the NASDAQ mini was down 23.5 factors this morning.
Later at this time, US Jobless claims, personal sector PMIs, shopper sentiment, core sturdy items, and the FOMC assembly minutes will draw curiosity. The stats and minutes will present the crypto market with path.
NASDAQ – BTCUSD 231122 Daily Chart
The Fear & Greed Index Holds Steady as FTX Contagion Risk Lingers
Today, the BTC Fear & Greed Index held regular at 22/100. The Index failed to reply to a BTC restoration of Monday’s loss and an all-important return to $16,000. FTX contagion danger stays a menace, which pegged the Index again from a transfer towards the Fear zone.
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 0.27% to $16,173. A combined begin to the day noticed BTC fall to an early low of $16,168 earlier than steadying.
BTCUSD 231122 Daily Chart
Technical Indicators
BTC must keep away from the $16,042 pivot to focus on the First Major Resistance Level (R1) at $16,469. A transfer by means of the Tuesday excessive of $16,294 would sign a bullish session. However, information updates must be market-friendly to help a breakout session.
In the occasion of an prolonged rally, BTC would seemingly check the Second Major Resistance Level (R2) at $16,720 and resistance at $17,000.
The Third Major Resistance Level (R3) sits at $17,398.
A fall by means of the pivot would convey the First Major Support Level (S1) at $15,791 into play. Barring one other prolonged sell-off, BTC ought to keep away from sub-$15,000. The Second Major Support Level (S2) at $15,364 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 $14,686.
BTCUSD 231122 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, presently at $16,527. 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 alerts.
A BTC transfer by means of R1 ($16,469) and the 50-day EMA ($16,527) would give the bulls a run at R2 ($16,720) and $17,000. However, failure to maneuver by means of the 50-day EMA would depart S1 ($15,791) in play.
BTCUSD 231122 4 Hourly Chart
