Cryptocurrency market 11/22 CHK: Bitcoin establishes a new bottom of the year, the market is red with a two-day drop

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2022-11-23 02:21:44

The bad news about Genesis Trading with the risk of widespread bankruptcy made the market continue to retreat a few more beats.

Cryptocurrency Market

Market data shows that Bitcoin started to break the $16,000 mark yesterday. Until dawn this morning, BTC continued to fall deeply, sometimes dropping its beard to reach $15,461, creating a new bottom in 2022. Currently, the strongest cryptocurrency in the market trades around the threshold of $15,700, 24-hour trading volume increases. jumped nearly 20% and reached a value of $33.33 billion.

Bitcoin Price Movement Last 24 Hours

Genesis Trading and Digital Currency Group (DCG) are the two names considered to be the main causes of this drop. Genesis is getting closer and closer to bankruptcy as DCG struggles to raise $1 billion in bailouts. Concern has also centered on a $10.5 billion hedge fund, Grayscale Bitcoin Trust (GBTC), with rumors of possible liquidity problems.

Popular commentator, Anbessa, has made the case that BTC will retest lower levels, highlighting the possibility of the market returning to $14,600 before the start of a fresh bull run. If Bitcoin stops falling for now, Anbessa says that the market entry point will be just below $17,600. The location of the previous macro bottom in June and Bitcoin will need to flip this area to support in order to continue its upward momentum.

Meanwhile, The London Crypto, a partner of exchange ByBit, believes that the last low of the bear market lies around $12,000. He calculated using corrections from past ATHs. However, he also predicts that Bitcoin will still grow strongly and reach the top of a new bull cycle when the next halving season takes place.

“BTC has corrected 77% during this bear market, compared to 84% in 2013 and 83% in 2017. Studying previous bear cycles, it is possible to estimate the bottom for this drop to be around $10,000 to $12,000, followed by a peak of $175,000 in 2024-2025.”

Analyst Sheldon the Sniper also gave a preliminary target of $12,000 – $13,000 for Bitcoin. BTC is likely to recover to $18,000, he said, and this will be part of a portfolio’s profit-taking threshold, before the market plummets to various support zones at $14,013, $12,846, $11,747, and $10,594. However, he also warned that BTC still has the potential to turn sharply lower from current levels without recovering above $18,000.

Besides, trader Rekt Capital has marked important support and resistance areas as closing prices on the weekly chart. Bitcoin closed its weekly candle at $16,250, he warned, $1,000 more than the “critical level” of $17,322.

Top 10 tokens by market capitalization on 11/22/2022

The altcoin market continues to decline slightly as there is still uncertainty about the upcoming direction of the leading crypto asset. Leading the way is UNUS SED LEO (LEO) which has evaporated more than 12% during the day. Following closely is Chiliz (CHZ) with a drop of more than 8%. Other projects in the top 100 such as KuCoin Token (KCS), Algorand (ALGO), The Graph (GRT), Helium (HNT), Klaytn (KLAY)… lost 5-8% of their value.

Ethereum (ETH) is facing great selling pressure when the FTX hacker holding more than 200 million ETH started swapping moves to release to the market. Currently, the largest altcoin in the market has lost the $1,100 mark and has seen trading volume skyrocket to $13 billion.

Market sentiment did not have much positive signal as the Greed and Fear Index (FGI) was still deep in the Extreme Fear zone at 22 points.

Cryptocurrency Market FGI Index November 22, 2022

Macro factors

The US stock market fell in trading on Monday (November 21 US time) on concerns that China may resume tough measures to combat Covid-19, after the country announced it was stand the most severe test of the pandemic. Crude oil prices also fell as the epidemic situation in the world’s second-largest economy cast a shadow over the outlook for energy demand.

On the first day of the week, the Beijing city government said it would close businesses and schools in areas with the strongest outbreak and tighten regulations on entering and leaving the city, in response to the increase in the number of cases. infected.

“Investors are concerned that China may re-impose some of the anti-Covid restrictions that should have begun to be lifted,” BMO Family Office deputy investment director Carol Schleif told Reuters about the cause of the session. this decrease of the market.

Shares of US casino operators with operations in China, including Wynn Resorts, Las Vegas Sands Corp, MGM Resorts International, and Melco Resorts & Entertainment, all fell at least 2%.

At the close, the Dow Jones Industrial Average fell 45.41 points, or 0.13%, to 33,700.28 points. The S&P 500 index fell 0.39% to 3,949.94 points. The Nasdaq index fell 1.09% to 11,024.51 points.

Market volume fell to a session low this week and is forecast to continue until the Thanksgiving holiday on Thursday this week. When trading volume decreases, market volatility tends to increase.

In the afternoon, the market’s range of losses narrowed after the President of the San Francisco branch of the US Federal Reserve (Fed), Mary Daly, said that monetary policymakers need to be careful to avoid a “painful recession”. A host of other Fed officials are expected to speak on Tuesday, including Cleveland Fed President Loretta Mester; Kansas Fed President Esther George; and the President of the Federal Reserve Bank of St. Louis James Bullard.

Energy shares in the S&P 500 at one point fell about 3% in the first session of the week, to a 4-week low, as oil prices fell more than 5% after news that Saudi Arabia and other members of the Organization Oil-exporting countries (OPEC) are discussing increasing production. However, the group narrowed the decline after Saudi Arabia denied this information.

Energy is the only major sector group in the S&P 500 up year-to-date, with a gain of about 63% now.

US stocks are extending their downtrend from last week, when Fed officials reaffirmed their commitment to raise interest rates until inflation is under control. Investors are waiting for the minutes of the Fed’s November meeting, scheduled for release on Wednesday.

Wall Street traders are betting mainly on the possibility that the Fed will raise interest rates by 0.5 percentage points at its December meeting and that the peak of this bull cycle will be set in June next year.

Brent crude oil futures in London fell 0.17 USD/barrel to close at 87.45 USD/barrel. WTI oil futures in New York fell $0.35/barrel to $79.73/barrel.

During the session, at one point, the price of the two oils “evaporated” more than 5 USD / barrel, touching a 10-month low, because the Wall Street Journal, citing sources familiar with the matter, said that OPEC +, the alliance between OPEC and some non-members bloc including Russia, is considering increasing production by 500,000 bpd during a meeting on December 4.

Next, oil prices rebounded after Saudi Energy Minister Prince Abdulaziz bin Salman stated that the country was consistent with its policy of production cuts and did not discuss increasing oil production with other OPEC members. .

“The situation changed in just a few minutes. Saudi Arabia is the source of the drop in oil prices and they are also the reason why oil prices are up again,” said John Kilduff, fund manager of Again Capital.

According to analyst Tina Teng of CMC Markets, in addition to the Covid situation in China and speculations about OPEC + output policy, putting downward pressure on oil prices in this session was also a strengthening USD.

“The risk appetite has become fragile, with recent data from all major economies reflecting a recession scenario, especially in the UK and the Eurozone,” Ms. Teng said. , and added that tough statements by Fed officials last week also raised concerns about the US economic outlook.

The world gold price fell to a near 2-week low in trading on Monday (November 21), due to the strengthening of the dollar and the worsening Covid-19 epidemic in China. Experts say that the current environment is still unfavorable for precious metals.

At the close in the New York market, spot gold price fell $12.9/oz, or more than 0.7%, to $1,739.2/oz. This is the lowest close in gold prices since November 10, according to data from Kitco.

Having just entered a new trading week, gold price has coped with downward pressure from the recovery of the USD. The Dollar Index, which measures the strength of the greenback against a basket of six other major currencies, gained 0.9% in the first session of the week, reaching 107.84 points. Because gold is priced in USD, when the USD rises, gold usually falls in price, and vice versa.

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