Cryptocurrency market 11/29 CHK: Bitcoin back to $16,500, green market light again

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2022-11-29 14:54:50

The thought that the news of BlockFi’s bankruptcy would make the market more miserable, but Bitcoin still held the $16,500 threshold, fueling the green altcoin’s return.

Cryptocurrency Market

Market data shows that Bitcoin is less affected by the news of the bankruptcy of crypto lending platform BlockFi. BTC price is currently trading around $16,500, a slight increase of 1.75% at the same time yesterday, the trading volume reached $25.8 billion.

Bitcoin Price Movement Last 24 Hours

Commenting on the future trend of Bitcoin, Il Capo of Crypto emphasized.

“Once below $16,000, BTC is likely to teleport to $12,000 – $14,000”

Credible Crypto, to his surprise that volatility has disappeared, while Crypto Tony also identifies $16,000 as an important limit for his own trading strategy. KOL trader Pentoshi is again focused on macro triggers, as the protests in China are weighing on market sentiment.

Other analysts are eyeing the upcoming monthly close, amid a lack of catalysts at the start of the week. In addition to the potential for volatility, trader and analyst Rekt Capital noted that Bitcoin’s monthly closing price will determine its long-term price range.

“When BTC lost the $19,500 support. The upcoming monthly close will likely confirm BTC’s new trading range from $13. 900 – $19,500”.

The BTC/USD pair is down about 21% in November at the moment, marking the worst November performance since the last bear market in 2018.

Top 10 tokens by market capitalization 11/29/2022

The altcoin market recovers in the short term while Bitcoin attempts to defend the $16,000 region. Ethereum (ETH) is back above $1,200 with a gain of nearly 4% on the day. Currently, the largest altcoin in the market is at $ 1,216 with a trading volume of $ 7.8 billion.

Leading the day’s gains was ApeCoin (APE) as it bounced near 15%. Within the 7-day timeframe, the project recorded a growth rate of nearly 30%. Following closely is Fantom with a gain of 12% in 24 hours and 19% in 7 days. Other projects that also recorded a recovery of 5-9% include Chainlink (LINK), Bitcoin SV (BSV), Dash (DASH), Trust Wallet Token (TWT), Theta Network (THETA), Litecoin (LTC). …

Market sentiment was more positive than at the same time last week. The current Greed and Fear Index (FGI) is still in the Fear zone at 26 points.

Cryptocurrency Market FGI November 29, 2022

Macro factors

The US stock market dropped sharply in trading on Monday (November 28), when the Covid-19 situation in China overshadowed investors’ minds. Crude oil prices turned from a sharp decline to closing the session in a “green” state due to information that the OPEC + alliance may be about to cut oil production.

At the close, the Dow Jones lost 497.57 points, or 1.45%, to 33,849.46 points. The S&P 500 index lost 1.54% to 3,963.94 points. The Nasdaq index slid 1.58% to 11,049.5 points.

This sell-off session of US stocks took place after in China at the weekend, people in some localities took to the streets to protest against strict blockade measures against Covid-19. Chinese authorities in recent days have had to tighten their anti-epidemic efforts in the context of a record high number of new infections. At the beginning of the month, global investors were still excited when the Chinese Government slightly adjusted some anti-epidemic measures – a sign that the world’s second largest economy is on the verge of reopening.

The situation in China put pressure on global financial markets in the first session of the week. The MSCI All Country World Index of world stocks lost 1.42%. The MSCI Emerging Markets index of emerging markets fell 1.13%. Crude oil prices fell to their lowest levels since December last year.

Shares of companies with a lot of manufacturing operations in China sold strongly. Apple fell 2.6% after Bloomberg reported that unrest at a factory in China could cost “apple” production of 6 million iPhone Pro units this year.

“Once Apple fails to fulfill iPhone orders because the factory in China is closed, I think it’s the perfect example of how the situation in one country can affect others.” Crossmark Global Investment chief global market strategist Victoria Fernandez said. “When something as big as the Chinese economy has to shut down, the effects spread around the world.”

Experts predict that the market will continue to fluctuate strongly in the coming sessions, when investors “digest” a series of important US economic data scheduled to be released this week. These figures will better reflect the state of the US economy, including the personal consumption expenditures (PCE) price index – an inflation measure favored by the US Federal Reserve (Fed). The jobs report is due for release on Thursday and the November jobs report is due for release on Friday. These are all statistics that have a great influence on the direction of monetary policy of the Fed.

In addition, investors are also waiting for the statements of Fed Chairman Jerome Powell and other Fed officials to find new signals on the path of interest rates in the near future.

On the energy market, the price of WTI crude oil futures in New York closed up $0.96/barrel, or 1.3%, to $77.24/barrel. WTI oil futures in London increased by $0.44/barrel, or 0.5%, to settle at $83.19/barrel.

During the session, WTI oil price fell to 73.6 USD/barrel at one point, the lowest since December 2021, and Brent oil price at times fell to 80.61 USD/barrel, the lowest since January 2022.

As of last week, the prices of both oils have fallen for three consecutive weeks. This session, oil prices continued to face downward pressure from concerns about energy demand in the context of the Covid-19 outbreak in China, the world’s largest crude oil importer. However, rumors that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, the OPEC+ group, will cut production at a meeting later this week, have supported oil prices.

“The most talked about today is the rumor that OPEC+ started to come up with the idea of ​​an output cut on Sunday this week. That helps oil prices reverse the drop caused by the Covid situation in China,” said Kpler analyst Matt Smith.

In a report released on November 28, analysts from Eurasia Group said that weak oil demand in China could lead the OPEC + group to continue cutting oil production, after announcing a cut in October. “This decision will depend on oil price movements during the OPEC + meeting and the degree of market turmoil after the EU officially embargoes Russian oil”, Eurasia said.

The OPEC+ meeting will take place on December 4. In October, OPEC+ agreed in 2023 to gradually reduce oil production to reach a cut of 2 million barrels per day.

The EU’s (EU) embargo on Russian crude oil and the price ceiling imposed on Russian oil by the Group of 7 industrialized countries (G7) will officially take effect on December 5. Currently, the EU is still discussing this price ceiling and has not been able to come to an agreement on a specific ceiling.

The world gold price slipped from the key support level of 1,750 USD/oz due to the appreciation of the USD, causing the domestic gold price this morning (November 29) to decrease accordingly. The SPDR Gold Trust “shark” continued its trend of net selling in the context that the gold price outlook has not improved.

Gold fell as the dollar rose again thanks to tough statements by US Federal Reserve (Fed) officials affirming their determination to fight inflation. The Dollar Index, which measures the strength of the dollar, closed at the beginning of the week at nearly 106.7 points, from more than 106 points last week. During the session, the index dropped to near a 2-week low at one point, but quickly recovered after Fed officials spoke up. This morning, Dollar Index turned down, fluctuating around 106.5

Putting downward pressure on gold prices also increased US Treasury yields. The tough monetary policy stance of Fed officials brought the 10-year US Treasury yields out of 2-month lows.

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