Cryptocurrency market 11/30 CHK: Bitcoin suddenly approached 17,000, the market recovered again

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2022-12-04 21:15:41

After a few sessions around $16,500, on the morning of November 30, Bitcoin suddenly surged after the news that Brazil recognized Bitcoin.

Cryptocurrency Market

Data from the market shows that Bitcoin has held above the local bottom yesterday. The unexpected rally pushes BTC towards the $17,000 region at the moment, up 4.45% from yesterday. However, the trading volume did not fluctuate as much as the previous ones, reaching a value of $26.5 billion, up 7.3%.

Bitcoin Price Movement Last 24 Hours

Many traders and analysts say that BTC needs to hold the support around $16,500 in order to maintain its upward momentum. Crypto Tony even thinks that optimism will return to the market soon.

“The $16,000 – $16,500 area is considered a safe area to enter long, however users need to establish tight stops.

The trend shows that BTC price identifies ongoing support and resistance zones on mid-range timeframes. Even the fresh developments of the FTX crash cannot dampen Bitcoin’s performance, with crypto lender BlockFi, having filed for Chapter 11 bankruptcy.

Michaël van de Poppe, founder and CEO of trading firm Eight, continues to post higher lows (HL) on the 4-hour chart:

“A bounce off the $16,500 to $16,800 range will trigger a rally towards $18,000.”

With Bitcoin unexpectedly approaching $17,000, the altcoin market also bounced sharply. Ethereum (ETH), the top altcoin by market cap, also bounced more than 8%, successfully defending the $1,200 area and now moving closer to the $1,300 mark. Transaction value in 24 hours reached more than 9 billion USD. Following the momentum, the top tokens by market capitalization are also in the green. BNB +2.74%, XRP +4.69%, DOGE +6%, ADA +3%, MATIC +4.7 %.

Top 10 tokens by market capitalization 11/30/2022

The rest of the market, Huobi Token (HT) is the best performing project of the day with a momentum of more than 16%, in the past 7 days, the native token of the Huobi exchange has recorded a return of almost 45%. Dogecoin (DOGE) and Fantom (FTM) are also the tokens with impressive gains over the past 24 hours, bouncing 13% and 12% respectively. Other projects like THORChain (RUNE), ImmutableX (IMX), Uniswap (UNI), Chain (XCN), Dash (DASH)… increased from 6-8% on the day.

With Bitcoin creating an unexpected increase column, the total liquidation value reached $88 million, of which the short ratio accounted for 85%.

Market sentiment was more positive when the recovery momentum appeared again. The Greed and Fear Index (FGI) has approached the threshold of 29 points in the Fear zone.

Cryptocurrency Market FGI Index 30/11/2022

Macro factors

The news that Brazil is considering adopting Bitcoin as a mainstream payment method is probably the direct cause of today’s rally. However, the US stock market brought bad news. The S&P 500 and Nasdaq indexes fell for a third consecutive session on Tuesday (November 29), as investors still had not recovered from the previous sell-off and were waiting for new economic data to come. announced within the week. WTI crude oil prices rose on hopeful information related to the Covid-19 epidemic in China.

At the close, Nasdaq slipped 0.59%, to 10,983.78 points. The S&P 500 fell 0.16% to 3,957.63. The Dow Jones index alone increased 3.07 points, or 0.01%, to 33,852.53 points.

The economic statistics investors are waiting for this week, including the number of jobs that businesses are looking for, are expected to be released on Wednesday; personal consumption expenditures (PCE) on Thursday; and the November labor market report on Friday.

In addition, investors are also waiting for the speech of the US Federal Reserve Chairman Jerome Powell on Wednesday to look for signals on when the Fed will slow down or stop raising interest rates. In a speech at the Brookings Institution, the world’s most powerful central banker will talk about the outlook for the US economy and the labor market.

“The market has shifted focus from financial statements of listed companies to other factors that may affect the Fed’s rate decision in December meeting. They are looking to what could happen. next, instead of looking back at what happened,” US Bank’s chief investment officer Bill Northey told CNBC.

“No one wants to buy before Mr. Powell speaks tomorrow. Everyone is worried about what he’s going to say,” Horizon Investments portfolio manager Ron Saba told Reuters.

The market struggled but failed to recover from Monday’s “red-hot” session. At the beginning of the week, stocks sold off globally as investors worried about complicated developments related to the pandemic in China.

On Tuesday, investors’ concerns about China were somewhat alleviated when a Chinese official told journalists that 65.8% of people over 80 had received a booster shot of the Covid-19 vaccine. In addition, Chinese government data also showed that the number of new Covid cases in the mainland fell for the first time in more than a week, and this was an impetus for the recovery session on both Shanghai and Hong Kong exchanges. .

Concerns about Covid in China continue to put downward pressure on shares of Apple, a technology company with a large production base in the country. Apple shares fell for a fourth straight session, with a 2.1% drop.

Brent crude oil futures on the London market fell $0.16/barrel, or 0.2%, to $83.03/barrel. WTI oil futures in New York increased by 0.96 USD/barrel, or 1.2%, to 78.2 USD/barrel.

The fact that China announced that it would boost Covid vaccination for the elderly to move towards easing anti-epidemic restrictions has made investors in the oil market optimistic. But on the other hand, oil prices also face downward pressure when the market thinks that OPEC + will not change the output quota at the upcoming meeting, instead of cutting output as some recent speculations.

Talking to Reuters, five OPEC+ sources said that the alliance could keep output unchanged at a meeting scheduled for Sunday this week. OPEC+ is an alliance between the Organization of the Petroleum Exporting Countries (OPEC) and a number of non-OPEC members including Russia.

The market is also waiting to see how the group of 7 industrialized countries (G7) and the European Union (EU) will agree on the ceiling of Russian oil prices. The countries are discussing to impose a price ceiling of 65-70 USD/barrel on Russian oil, but as of Monday there has been no agreement. The price ceiling is expected to take effect from December 5, the same day as the EU embargo on Russian crude oil shipped by sea is officially enforced by the EU.

Oil prices have been supported recently as the dollar fell from 20-year highs amid signs that inflation in the US may have passed its peak. However, worries about the possibility of the global economy falling into a recession are putting downward pressure on oil prices, causing the price of “black gold” to sometimes drop to the lowest level since the beginning of the year.

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.

At the same time, spot gold price in Asia market stood at 1,746.6 USD/oz, up 4.5 USD/oz, equivalent to an increase of nearly 0.3%, compared to the closing session last night in New York. – according to data from Kitco.

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.

This morning, Dollar Index turned down, fluctuating around 106.5 points.

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