Crypto Technical Analysis Report | 24th-November-2023

The Crypto industry experienced a significant loss of approximately $60 billion in market capitalization following the settlement between Binance, the world’s leading exchange, and the U.S. Department of Justice (DOJ). This news triggered a rollercoaster-like reaction in Bitcoin’s price, initially witnessing a drop of almost $2,000, only to recover later.

As of today, the market is showing signs of recovery, with most coins gaining momentum. Bitcoin (BTC) has risen by 2.5% in the past 24 hours, successfully reclaiming the crucial $37,000 level. The overall altcoin market is in positive territory, except Binance Coin, which is down 0.87% in the past 24 hours. Despite the initial market turbulence, the Crypto market did not crash as severely as some had anticipated, and a degree of stability and recovery has been observed in the aftermath of the Binance-DOJ settlement.

The excitement surrounding the potential approval of a Bitcoin exchange-traded fund (ETF) is widespread, yet short-term optimism for Bitcoin’s price is showing signs of weariness, with doubts about reclaiming the $40,000 mark. Recent analyses indicate that market participants are reconsidering the extent of bullish sentiment related to the ETF narrative for Bitcoin price action. The aftermath of the regulatory developments involving the United States and Binance, including a $4.3 billion fine and the removal of Changpeng “CZ” Zhao as CEO, initially led to a dip in Bitcoin’s price to one-week lows. However, a swift rebound followed, bringing it back to near 18-month highs within the next 24 hours. While some commentators suggest that the regulatory enforcement action could be a strategic move to pave the way for the first U.S. spot Bitcoin ETF, not everyone envisions an ETF approval triggering an immediate parabolic reaction in Bitcoin’s price. Popular trader Bitcoin Jack, in a recent analysis, expressed scepticism about BTC/USD even reaching $42,000, indicating a degree of caution in the short-term price outlook for Bitcoin.

As of November 23rd, the price of Ethereum (ETH) is trading slightly higher, maintaining support above the $2,000 level, having briefly retested $1,930 on November 21. Over the past week, Ether’s price has increased by 2.5%, while the total market capitalization has grown by 0.5%. This upward trend is attributed to several factors, including improved metrics for DApps, increased protocol fees, and Ethereum’s dominance in the NFT market. Binance leads in Ether spot trading volume, accounting for 30% of ETH futures contracts’ open interest. Notably, the closure of Binance’s $2.35 billion worth of ETH derivatives contracts within a short period could have significant consequences on the market. In terms of the Ethereum network’s health, Ethereum DApps achieved a total value locked (TVL) of $26 billion on November 23, marking a 5% increase from the previous week. These metrics indicate the continued strength and growth of the Ethereum ecosystem, contributing to the positive price momentum observed in recent days. 

Technical Outlook:

Bitcoin:

Bitcoin after taking multiple supports at the key level of $25,000 started moving upwards. The asset broke the long-held resistance of $32,000 and surged up to $37,980. Post this move, BTC is consolidating between $37,500 to $35,500 with declining volumes. The asset has a strong resistance at the psychological level of $40,000 to $42,000 whereas $36,000 will act as a strong support. Once the price breaks and sustains above these resistance levels then it may further rally to $48,000.

Ethereum:

ETH after taking multiple supports at the key level of $1,530 (78.6% Fibonacci Retracement Level) started moving up by forming a ‘Higher High Higher Low’ pattern. The asset broke the long-held resistance of $1,750 and surged up to $2,136. However, the bulls failed to break the previous high of $2,146 and the prices witnessed some profit booking and corrected almost by 10% to $1,904. ETH made a double ‘Doji’ at the recent low of $1,904 and rallied up to $2,066. Currently, the prices are hovering around $2,000. To further rally it needs to break, close and sustain above $2,150.

BNB:

BNB was trading in a range from $205 to $220 with low volumes. The asset finally gave a breakout above the range and surged up to $258. BNB was facing stiff resistance at $255 (Horizontal Trendline). The bulls managed to break the resistance and made the weekly high of $271. However, BNB did not give a daily closing above $255 as the prices failed to sustain higher levels and witnessed some profit booking and corrected to $224. The asset has a strong support at $220 and to further rally it needs to break, close and sustain above $255.

Weekly Snapshot: