Bitcoin Analysis: Positive Sentiment Prevails Amid Market Developments
On Sunday, November 26, Bitcoin (BTC) is trading at $37.7k, experiencing a 3% price increase since the end of the previous week. Financial analyst Vladislav Antonov from BitRiver has analyzed the market situation, providing insights into Bitcoin’s potential price movement in the coming week.
Key Events from Last Week:
- News of a $4.3 billion fine for the Binance crypto exchange and the resignation of Binance CEO Changpeng Zhao. The market showed mixed reactions to these developments.
- Optimism among investors due to the anticipated approval of a Bitcoin ETF in the U.S., a significant factor supporting BTC’s price growth.
- Weakening of the U.S. dollar, providing supportive effects on Bitcoin’s value.
- Positive impact on Bitcoin’s dynamics due to the rise of U.S. stock indices.
During the past week, Bitcoin traded in the range of $35,632 to $38,414.
On November 20, the closing price of Bitcoin was $37,448, showing a slight increase of 0.24%. On November 21 and 22, a sharp price drop occurred to $35,632 following the news of Binance’s $4.3 billion fine and Changpeng Zhao’s resignation. However, by the end of Wednesday, November 22, Bitcoin had recovered its losses, rising by 4.66% and closing at $37,408. Thursday and Friday passed relatively calmly, with slight price fluctuations around $37,500.
November 24 saw a 1.12% increase with a peak at $38,414, marking the highest value in the last 18 months. Buyers struggled to maintain these high levels, leading to a correction to $37,550 shortly after reaching the maximum. Nevertheless, Bitcoin managed to stabilize above $37,500, preserving most of the gained growth. At the end of the week, Bitcoin demonstrates positive dynamics with a growth of 0.84%.
The main driver of the upward trend was the positive expectation of the imminent approval of a spot Bitcoin ETF by the U.S. financial regulator. Dollar weakening and the rise of U.S. stock indices also favored the “bullish” sentiment.
In the opinion of BitRiver, buyers are rushing with the onset of the new phase of growth since November 21. They covered the recent decline following Changpeng Zhao’s resignation, and it would have been wise to withstand for a couple of days. According to BitRiver’s assessment, this would have allowed buyers to take a breather and clear all the “stops” on short positions, down to the $42k mark. If the price slips below $38,500, it is likely to remain below it until the beginning of winter.
Despite the interim correction, Bitcoin demonstrated positive dynamics, maintaining a positive sentiment among market participants, supported by the prospects of a Bitcoin-ETF launch. This provides grounds to expect the continuation of the upward trend in the medium term.
Key events in the upcoming week include the U.S. GDP for the quarter (second estimate on Wednesday) and the speech by the head of the U.S. Federal Reserve, Jerome Powell, on Friday.