Bitcoin Tests Crucial Support Zone; Market Remains Stable Despite ETF Decision Delay
Summary:
Bitcoin (BTC) demonstrates fluctuating behavior around the significant value point of $38,000. Data indicate that Bitcoin is swiftly recovering after a steep decline earlier in the week, currently probing a crucial support area near $37,400. With the US regulators postponing a decision on approving cryptocurrency exchange-traded funds (ETFs), there has been a surge in the market. Additionally, reduced open interest and funding rates present a more persuasive argument for maintaining a higher market position.
As the US stock market opened on November 16, Bitcoin (BTC) demonstrated fluctuating behavior around a significant value point, following a repeat pattern of BTC price behaviour triggering a new advance towards $38,000. The Bitcoin price matches an 18-month high, according to data from Cointelegraph Markets Pro and TradingView, which revealed Bitcoin swiftly recovering after a steep decline earlier in the week. There was an exact replication of the previous week's pattern on the daily chart, which continued to recognize $38,000 as a solid barrier. Currently hovering near $37,400, BTC/USD seemed to be probing a crucial support area identified by experts to maintain stability.
Material Indicators, a tracking tool, suggested an uncertain signal of extended price increase on one of its unique trading indicators, indicating that the present price area will determine whether there will be an 'up or out' scenario. “Trend Precognition suggests this upward trend might still not be done with. $40k is on the radar, but it's far from sure that BTC will hit it within this week. I will consider #TradingSignals invalid if there's a dip below $35,375," stated a part of X commentary. The initial upward momentum was prompted by US regulators postponing a decision on approving multiple cryptocurrency exchange-traded funds (ETFs).
In November, there was a flurry of speculation about a potential game-changing event for Bitcoin in the form of the nation's first Bitcoin ETF based on spot price. Despite the uncertainty due to the delay, the market remained fearless — a surprising step observed by well-known trader Skew among others.
Assessing the market structure, Daan Crypto Trades, another trader and analyst, argued that there now exists a more persuasive argument for maintaining a higher position. The reason being lower open interest (OI) and funding rates compared to peaks from the past week. "Despite the price being similar to last week, the Open Interest has considerably reduced. Also, the funding rates are relatively lower. I believe our base now is healthier and stronger than it was last week," he noted the same day.
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Published At
11/16/2023 11:43:37 AM
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