Bitcoin price rose sharply and touched $37,975 on Wednesday, Nov 15, 2023, before returning to the $35,000 level. Some argue that market manipulation plays out the best in these times of rising prices.
In the fall from ~$38,000 to ~$35,100, over $367 million in liquidations. Over 103,000 traders got liquidated, with the most significant single liquidation happening on OKX, where the trader lost $9.45 million.
- Bitcoin Market Cap Dominance: 49.3%
- Bitcoin Market Cap: $711.634 billion
- Total Supply: 21 million
- Circulating supply: 19.544 million
Previous Bitcoin Price Analysis
Last week, Bitcoin price increased by over 10%, and indicators showed the asset might add to its gains. The moving averages (50 & 200) provided support at $35,388 and $32,543. The road ahead was clear for BTC to attempt a run for $40,000.
However, this week, the asset only tested last week’s high of $37,973. While BTC reached this level, it did not exceed it and returned to $35,000. Those are two rejected attempts in two weeks.
Will a Third Attempt at the $38k Barrier Be Successful?
Bitcoin now braces itself to test the local resistance for a third time. As they say, the third time’s a charm. What would help BTC break out is some good news – which it has been receiving much of lately.
Bitcoin is dead in the middle of newly formed demand and supply zones and needs to decide soon. The 50-day and 200-day moving averages provide support at $32,819 and $29,055.
Apart from these two, key support levels for Bitcoin on the Daily timeframe lie at $28,821 and $26,776, while resistance levels are at $37,486 and $40,796.
Based on previous Bitcoin history, the new supply zone at the $40,000 level is where many Sell Limit orders and buy stops have been set. Hence, it makes sense for Market makers to push the price to that level and scoop the liquidity nested there.
Bearish Divergence May Spoil the Fun For Bitcoin, but Not Before $40k
Bitcoin price action and RSI (14) are moving in different directions. In technical analysis, this is called bearish divergence. Bearish divergence is a great and subtle indicator since when it forms, the general market sentiment is ‘bullish,’ hence, the reversal is usually rapid and unexpected.
The bearish divergence should result in BTC returning to the 200-day moving average, but it may not happen before the asset touches the $40,000 level.
‘Fake’ XRP ETF: Author’s Opinion
The fake XRP ETF news that broke out on November 14, 2023, sent XRP up 15% in seconds, but the gains were swept away after the news was deemed inaccurate. Since then, Blackrock has contacted the police to investigate the matter.
The Bloomberg ETF analyst Eric Balchunas broke the news and dispelled it as fake – suspicious, right? I think the whole thing was a psychological operation to confuse the market. This is true because two days later, on November 16, 2023, Blackrock filed the S-1 prospectus for its Spot Ethereum ETF with the SEC. It is a game of confusion; only those who can filter out the noise will emerge as winners.
Our key dates remain intact: Nov. 17, 2023, Nov. 18, 2023, Nov. 19, 2023, and Nov. 20, 2023.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make investment decisions based solely on what you read here.