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Crypto market sees green as Bitcoin bulls target resistance at $38k

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(Kitco News) – Cryptocurrency prices were back on the uptrend on Wednesday as traders interpreted Tuesday’s plea deal by Binance CEO Changpeng Zhao (CZ) as a positive sign for the crypto industry since it removed one major ‘sword of Damocles’ that had been threatening the health of the market.

Stocks also traded higher, bolstered by the tech sector, with headlines dominated by Sam Altman’s return to the CEO position at OpenAI just days after he was ousted. Price action is expected to be subdued for the remainder of the week due to the Thanksgiving holiday in the U.S. on Thursday, and a half day in the market on Friday.

At the closing bell, the S&P, Dow, and Nasdaq all finished in the green, up 0.41%, 0.53%, and 0.46%, respectively.

Data provided by TradingView shows that Bitcoin (BTC) bulls took charge of the price action early on Wednesday, pushing the top crypto up from a low of $35,634 and back above $37,500 in the afternoon. At the time of writing, BTC trades at $37,640, an increase of 2.3% on the 24-hour chart, with bulls looking to extend the gains.

BTC/USD Chart by TradingView

The efforts by bulls led to “November Bitcoin futures prices [trading] a bit firmer in early U.S. trading Wednesday,” according to Kitco senior technical analyst Jim Wyckoff.

Bitcoin futures 1-day chart. Source: Kitco

“A price uptrend on the daily bar chart has stalled out and the bulls need to show fresh power soon to revive it,” Wyckoff said. “The recent higher volatility at higher price levels is not bullish. The BTC bulls do still have the slight overall near-term technical advantage.”

Looking at the monthly timeframe chart for BTC, MT Trading analyst Daan Foppen said, “This would not be the area where I am interested in buying a lot of BTC,” as its price has spiked out of the fair value gap, “and we are almost at a bearish monthly order block.”

BTC/USD 1-month chart. Source: MN Trading

“Based on this timeframe, I would like to see a serious correction towards the monthly bullish order block starting at 30K and scale in a position over the order block itself,” he said. “People [need] to remind themselves that even when we are in a (potential) bull market, these kinds of significant retracements happen, so make sure to collect some profits on the way up.”

A look at the daily chart “shows us that we are bouncing from the support level at 35.7k,” he said.

BTC/USD 1-day chart. Source: MN Trading

“A move towards the highs around 38K makes sense in my opinion,” Foppen said. “If you [look] closely at the highs you can see that they are relatively equal. We can find liquidity above the highs in the form of resting buy-stops. It makes sense to grab the liquidity first before we see any significant retracement on Bitcoin.”

Zooming into the 1-hour timeframe shows that a clear trading range has formed.

BTC/USD 1-hour chart. Source: MN Trading

“With the dump in price yesterday we had another test of the range low, with a pretty significant bounce afterward,” he said. “I would say that we are going to at least see another test of the mid-range, but as stated before, I would not be surprised if we see a test of the range high as well.”

“All in all, Bitcoin is holding up pretty well even though we got some negativity in the form of [the Binance] news,” Foppen said. “However, I’m personally not really a fan of [opening] a lot of positions at these prices. You should already have a position from lower [levels] or wait, do not FOMO into the markets because you think that you have missed your opportunity. Chances will come and make sure to capitalize on them when you have the opportunity.”

MN Trading founder Michaël van de Poppe provided additional insight into the strong showing from BTC on Wednesday afternoon and sees the possibility of a breakout above resistance at $38,000 in the short term.

Altcoin uptrend resumes

The altcoin market followed Bitcoin’s lead, with a majority of tokens in the top 200 seeing green as traders jumped back into the market after exiting on Tuesday.

Daily cryptocurrency market performance. Source: Coin360

Blur (BLUR) was the largest gainer, increasing by 31.5% to trade at $0.50, followed by an increase of 24.3% for FTX Token (FTT), and a 19% gain for Uniswap (UNI). Huobi Token (HT) saw the biggest drawdown with a loss of 4.5%, while Mantle (MNT) and BNB (BNB) declined by 2.3%

The overall cryptocurrency market cap now stands at $1.43 trillion, and Bitcoin’s dominance rate is 51.6%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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