Cryptocurrency market 11/23 CHK: Bitcoin regains above 16,000 threshold, altcoins prosper as US stocks bounce

 74 total views

2022-11-24 02:27:44

After a day of losing the key 16,000 mark and sinking deep below the 15,800 zone, Bitcoin has officially turned around and bounced back strongly.

Cryptocurrency Market

Bitcoin is back after hitting the bottom of the year at $15,480. So far, the continued upward momentum has brought BTC price back to $16,500 with strong momentum, marking a more than 4% gain from the intraday low. In the past 24 hours, the trading volume continued to maintain at 33 billion USD with 105 million USD liquidated in which the short ratio accounted for 76%.

Bitcoin Price Movement Last 24 Hours

According to Material Indicators, the bid at $12,000 could be what protects the market if a major capitulation event occurs during the Thanksgiving break.

“Over $300 million in BTC bid liquidity sitting from the current price down to $12,000, along with a new $70 million buy wall just above $12,000 will be a hurdle in the near term.”

Meanwhile, the downside targets for BTC/USD are mostly focused on the $14,000 level and below. Other growing concerns focus on long-term Bitcoin (LTH) holders. In its latest weekly “The Week On-Chain” newsletter, analytics platform Glassnode warned that long-term investors are starting to increase trading activity.

“The supply of Bitcoin long term holders fell by 84,560 BTC after the FTX crash, which is one of the steepest declines of the year, while the reduction is still significant.”

Likewise, the largest BTC investors are also selling BTC to the market, which is happening despite previous data showing that some entities have started buying.

“Whales are currently in sell mode, depositing between 5,000 and 7,000 BTC into exchanges,” Glassnode added.

Top 10 tokens by market capitalization on 11/23/2022

The altcoin market flourishes as Bitcoin successfully reclaims the $16,000 threshold.

Curve DAO Token (CRV) is the project with the most impressive growth momentum yesterday, when it bounced more than 25%. Litecoin (LTC), once dubbed “digital silver” also recorded a gain of more than 13% on the day. Other projects such as Helium (HNT), Trust Wallet Token (TWT), Holo (HOT), Convex Finance (CVX), Axie Infinity (AXS), Chainlink (LINK), Dash (DASH)… also increased from 7 – 10 9%.

Ethereum (ETH) has yet to successfully recapture $1,200, having just touched $1,164. The day’s trading volume fell 12% to a value of $12 billion.

BNB on the afternoon of November 23 suddenly had a strong increase when Binance announced the launchpad of a new token Hooked Protocol (HOOK). Users would need to use BNB to stake, so the demand for the exchange token suddenly spiked.

Market sentiment has yet to see any signs of improvement as the FGI is still at the Extreme Fear zone with 22 points.

Cryptocurrency Market FGI Index 11/23/2022

Macro factors

The US stock market rallied strongly in Tuesday’s trading session (November 22), as investors temporarily put aside worries about China’s anti-Covid-19 policy and instead turned their attention to series of positive financial statements and taking into account the possibility that interest rates will slow down. Crude oil prices also rose sharply after Saudi Arabia announced it would maintain its policy of tightening output.

At the close, the Dow Jones Industrial Average rose 397.82 points, or 1.18%, to close at 34,098.1 points. The S&P 500 index gained 1.36% to close at 4,003.58 points, marking the first time closing above 4,000 points since September. The Nasdaq index gained 1.36% to reach 11,174.41 points.

Better-than-expected business results of some businesses have become an important catalyst for investors’ excitement in this session.

Electronics retailer Best Buy saw its share price rise 1.28% after raising its revenue and profit forecast for 2023, and delivered better-than-expected third-quarter profit. Fashion retailers Abrecrombie & Fitch and American Eagle Outfitters rose 21.4% and 18.2%, respectively, thanks to better-than-expected results.

However, shares of video conferencing company Zoom and low-cost retailer Dollar Tree fell 3.9% and 7.8%, respectively, due to disappointing results.

This past weekend, China recorded its first Covid deaths in the mainland since May, prompting the country’s authorities to decide to tighten epidemic prevention regulations. Just a week ago, China began to relax some anti-epidemic measures to move towards a softer policy.

China’s reopening will be “extremely helpful for growth”, according to Principal Asset Management chief strategist Seema Shah. “However, investors should carefully monitor developments in China, as how the country implements its reopening plan will determine the investment outlook,” Ms. Shah said in a report. quoted by CNBC.

Share prices were also supported when US Treasury yields fell as investors looked to 2023. The comments of US Federal Reserve (Fed) officials also attracted attention. On Monday, Cleveland Fed President Loretta Mester said that recent inflation data has been very promising and that she favors a reduction in the pace of rate hikes in the near term. Thus, the Fed may soon reach the maximum interest rate in the range of 4-5%.

“That means a big burden has been lifted off the shoulders of investors,” JPMorgan Asset Management portfolio manager Phil Camporeale told CNBC about the Fed slowing rate hikes.

Crude oil prices rose after Saudi Arabia announced it would stick to its previously announced production cut policy. This statement from Riyadh helps “neutralize” investors’ concerns about the prospect of oil demand in the context of the risk of a global economic recession and a sharp increase in the number of Covid cases in China.

Saudi Arabia’s SPA news agency on Monday quoted Saudi Energy Minister Prince Abdulaziz bin Salman as denying a Wall Street Journal article that said the Organization of the Petroleum Exporting Countries (OPEC) was weighing prompt to increase production. The United Arab Emirates (UAE), another major member of OPEC, also denied this information. Similarly, Kuwait said there are currently no talks on raising output.

Brent oil futures in London increased by 1.08 USD/barrel, or 1.2%, to close at 88.53 USD/barrel. WTI crude oil futures in New York increased by 1.14 USD/barrel, or 1.4%, to close at 81.18 USD/barrel.

“Oil prices are struggling to recover from the recent drop. Saudi Arabia’s denial of rumors that it is negotiating production increases with other OPEC members and allies has supported oil prices,” Avatrade analyst Naeem Aslam told Reuters news agency.

OPEC, Russia and other allies, the OPEC+ group, will meet on December 4, a day before the European Union (EU) and the Group of 7 industrialized countries (G7) officially develop different measures. further sanctions on Russian crude oil exports in response to the Russo-Ukrainian war. These measures could further support oil prices.

Accordingly, the EU will embargo Russian oil exports by sea from December 5. Also from this date, the G7 will impose a price ceiling on Russian oil by allowing shipping service providers to provide services to Russian oil exports only if the oil is sold at or below the ceiling price.

However, concerns about oil demand in the context of rising interest rates and China’s Zero Covid policy are said by analysts to continue to be a drag on oil prices, limiting the extent increase in the price of “black gold”.

The world gold price was little volatile last night and this morning (November 23) while investors in the international market waited for the release of the minutes of the November meeting of the US Federal Reserve (Fed). The domestic gold price decreased slightly, continuing to be higher than the world gold price by more than 15 million dong/tael.

Gold price could not break through even though both US Treasury yields and USD exchange rate fell.

The Dollar Index, which measures the strength of the dollar, closed Tuesday at 107.2 points, from 107.8 points in the previous session. This morning, this index fluctuated around 107.1 points.

Signals from Fed officials have been mixed lately. On Monday, Cleveland Fed President Loretta Mester said the Fed may slow down the pace of rate hikes from next month. San Francisco Fed President Mary Daly later said that policy rates were “just a little tight” and that “a lot of work remains to be done.”

#Cryptocurrency #market #CHK #Bitcoin #regains #threshold #altcoins #prosper #stocks #bounce

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Close Bitnami banner