- BTC/USD attempted a recovery after losing $4,000, but never went too far.
- Two celebrities are investigated about ICO's while institutional trading is picking up.
- Technically, Bitcoin is touching oversold territory, leaving a question mark over the next move. Experts sharply revised forecasts to the downside.
Bitcoin and other cryptocurrencies suffered another massive downfall over the weekend, on November 24th. BTC/USD crashed below $4,000 and hit a low of $3,456. Digital coins gradually staged a recovery worth around 30% with BTC topping $4,400 at one point. However, this recovery did not turn into a comeback.
At the time of writing, Bitcoin is back below $4,000. What are the next moves? It is hard to tell. The only sure thing is that volatility has returned and will likely stay for a while.
One of the reasons for the recovery was the news that Coinbase, one of the world's leading crypto-exchanges, announced it would launch an Over-The-Counter service in addition to its crypto-exchange. The OTC service will allow institutional traders to trade vast amounts of digital coins without having a massive impact on the price.
NASDAQ is also reportedly moving forward with its crypto projects despite the recent downturn in the price.
These developments support the theory of "dumping to accumulate." in which whales are dumping some coins to lower the price and then accumulate more afterward. The speculation continues.
Another piece of good news came from the US state of Ohio which now accepts Bitcoin as a means of payment for 23 different types of business taxes.
Not everything was good news. News about cryptocurrencies entered the mainstream after it became known that US authorities are investigating Floyd Mayweather and DJ Khaled in relation to their involvement in Initial Coin Offerings (ICO's). The US authorities have upped their game around this issue.
It is important to remember that the crypto-sphere is still scarred by the hard fork in Bitcoin Cash. The "hash wars" do not top the talk in blockchain world, but they still weigh on the price.
And, markets are still awaiting an Exchange Traded Fund (ETF) for Bitcoin. An ETF is critical to attracting mainstream funds to the cryptocurrencies. Prices have moved quite a bit on any delay, rejection or hope for an approval. See: Bitcoin ETF explained: 9 questions and answers about the critical crypto catalyst
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
BTC/USD Technical Analysis
-636791758008994463.png)
The Relative Strength Index on the daily chart shows is just around 30 at the time of writing. A fresh drop below this level indicates oversold conditions. The RSI only temporarily left these levels after two weeks of non-stop selling that did not trigger an imminent bounce. So, it should be taken with a pinch of salt. Momentum is still to the downside.
$3,830 capped BTC/USD temporarily when it attempted recovery in late November. $3,670 was the initial low after Bitcoin lost $4,000. $3,456 is the lowest level since September 2017. $3,000 looms below.
Looking up, the swing low of $4,050 seen in mid-November switches positions to resistance. $4,400 was swing high in the recent recovery. $4,600 served as resistance after the loss of $5,000. $5,000 and $5,200 are next.
The Forecast Poll of experts shows a bearish bias in the short term, a neutral one in the medium term and a bearish target in the long-term. All in all, price targets have been sharply revised to the downside.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
This is why a mere 15% rally in Lido DAO price could be a game-changer for LDO holders
Lido DAO price is following the rest of the market due to the regulatory events that transpired in the last few days. However, the DeFi token is generally unlikely to pursue the path set by any other cryptocurrencies, including the likes of Bitcoin. This might play in favor of LDO.
LINK holders opt to sell as Chainlink price falls by 9% in a week, new investors on the rise
Chainlink price, after following the broader market cues, is nearing a key support level that was last visited by the coin in January this year. This has discouraged LINK holders to the point where selling has become a preferred option. However, newer investors are countering this selling by accumulating, preventing a severe decline.
Optimism price could rally 50% as network upgrade inspires new wave of OP adoption
Optimism (OP) price appears to have found support after a new buyer congestion zone came into effect to prevent the free fall. Accordingly, the Ethereum Layer 2 (L2) token is trading horizontally, giving bulls time to accumulate OP at affordable rates.
Binance CEO addresses chat records disclosed by the SEC
Binance CEO Changpeng Zhao has issued an internal address to company staff, asking them to focus on work and developing products people can use. The internal memo comes after the United States Securities and Exchange Commission (SEC) disclosed chat records between Binance employees in an attempt to support its case against the largest crypto exchange by trading volume.
Top 3 cryptocurrencies that outperformed Bitcoin, Ethereum this week
The US Securities and Exchange Commission’s (SEC) crackdown on cryptocurrencies triggered a correction in the prices of Bitcoin, Ethereum and several altcoins with large market capitalization.