Our weekly feature. Our experts analyzed the market situation and told how it may change for bitcoin this week
On Sunday, November 26, bitcoin (BTC) was trading at $37.7k, its price up 3% since the end of the previous week.
Key events of the past week:
- News of a $4.3 billion fine for crypto exchange Binance and the resignation of the head of Binance. The market had mixed reactions to the news.
- The expectation of the soon approval of bitcoin-ETF in the US was the main factor of investor optimism and BTC price growth.
- Weakening of the US dollar. Had a supporting effect on the bitcoin price.
- The growth of stock indices in the U.S. had a positive impact on the bitcoin price dynamics.
Last week, bitcoin traded in a range of $35,632 to $38,414.
On November 20, bitcoin closed at $37,448 after a slight increase of 0.24%. On November 21 and 22, the price plummeted to $35,632 amid news of a $4.3 billion fine for Binance and the resignation of Binance CEO Changpeng Zhao. However, by the end of Wednesday, November 22, bitcoin recovered its losses and rose by 4.66% to close at $37,408. Thursday and Friday were relatively quiet with slight price fluctuations around $37,500.
November 24 saw a 1.12% rise with a high of $38,414. It became the highest value in the last 18 months. Buyers failed to consolidate at these high levels. Almost immediately after the high was updated, there was a correction to $37,550. Nevertheless, bitcoin managed to stabilize above $37,500, maintaining most of the gained growth. At the end of the week bitcoin shows positive dynamics with growth of 0.84%.
The main driver of the upward dynamics were positive expectations of the soon approval of the spot bitcoin-ETF by the U.S. financial regulator. Weakening of the dollar and growth of stock indices in the U.S. also played into the hands of the “bulls”.
Buyers are in a hurry to get on the offensive, even though a new phase of growth has begun since November 21.
Our experts note that buyers overcame the recent drop after Binance’s CEO stepped down and needed to hold out for a couple days. BitRiver estimates that this would have allowed buyers to rest a bit. In order to tear down all the “stops” on short positions, up to the $42 thousand mark. If the price stalls under the $38,500 level. Then, most likely, we will stay under it until the beginning of winter.
Bitcoin showed positive dynamics, despite the intermediate correction. The positive mood of market participants remains, supported by the prospects of launching bitcoin-ETF. This gives grounds to expect the continuation of the uptrend in the medium term.