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Bitcoin Recovers Above $4,000 After a Flurry of Positive Developments

November 28, 2018 at 20:24 by Arathur Stephen

After falling below the $4,000 mark in what seemed to be a dramatic market dump on November 14, Bitcoin (BTC) for the first time since September of 2018, has soared 9.3% on the day to trade at $4,360 at press time. This major bounce has set the flagship cryptocurrency on track for its strongest daily performance since July.

Before the rally, the king of cryptos was trading at $3,970 on the Bitstamp platform, after being mauled in a sharp sell-off in cryptocurrencies over the past two weeks. It lost more than 70% of its value in 2018.

Nasdaq Bitcoin Futures

The rally in the price Bitcoin has been attributed to a series of different factors, including the National Association Securities Dealers Automated Quotations (NASDAQ), the world’s second-largest stock exchange, revealing that amid the recent crypto market sell-off, it still plans to launch Bitcoin futures contracts.

On Tuesday, the Director for Digital Asset Strategy at VanEck/MVIS, Gabor Gurbacs announced at Consensus Invest that VanEck has partnered with Nasdaq to “bring a regulated crypto 2.0 futures-type contract” to the market.

It seems that Nasdaq, with a market capitalization of $10 trillion, believes Bitcoin prices might rebound even though over $700 billion has been erased from the crypto asset market since December 2017 and early 2018 when crypto prices reached all-time highs.

SEC on Bitcoin ETF

Meanwhile, the chairman of the US Securities and Exchange Commission (SEC), Jay Clayton was interviewed at Consensus Invest where he shed light on the highly anticipated Bitcoin ETF proposed by VanEck. Mr. Clayton, however, revealed that he was skeptical whether the Bitcoin ETF would get the blessing of the Commision. Until then, the underlying markets, according to Clayton, were  “free from the risk or significant risk of manipulation.”

In a bid to quell fears of price manipulation, VanEck revealed in a recent announcement, that their Bitcoin ETF price index would use data from three of the largest Bitcoin OTC markets — Cumberland, Genesis Trading as well as Circle Trade, as they believe this index will be less vulnerable to market manipulation.

BTCUSD Technical Analysis

On Tuesday, the price of the BTCUSD pair was in a bullish trend. On November 26, the pair fell to its low at $3,970 and commenced a bullish movement. On Wednesday, the price of Bitcoin can be seen in the chart making a bullish movement to the 12-day Exponential Moving Averages (EMA) and the 26-day EMA. However, the price of the coin is still below the EMAs which shows that price is still in the bearish trend zone.

The EMAs can act as resistance to Bitcoin’s price. The Stochastic in the daily chart is in the range below 20. That is the price is in the oversold region, meaning that the bearish trend is strong. The BTCUSD pair will remain bearish as long as the Stochastic is below 20.

Moreover, the crypto’s price according to the 4-hour chart is in a bullish trend. Bitcoin price declined to the low of $3,757 and then commenced a bullish movement to the 12-day EMA and the 26-day EMA. The price has broken the 12-day EMA, the 26-day EMA and remains above it. Nevertheless, if the bulls remain in charge and sustain the price above the $4,000 level, BTCUSD  will resume its uptrend to the high of $4,500 and the $5,000 level.

On the downside, if the bulls are unable to hold the price above the $4,000 level; Bitcoin will decline to the $3,500 price level. In the meantime, the Stochastic is in the range above 40 and this indicates that bullish momentum is increasing on the upside.

Resistance levels: $7,000, $7,200, $7,400

Support levels: $4,000, $3,800, $3,600

If you have any questions and comments on Bitcoin today, use the form below to reply.

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