Bitcoin remains strong as analysts warn of a return to $32,000

(Kitco News) – Crypto markets were bullish on Monday, boosted by the election of a Bitcoin (BTC)-friendly president in Argentina who is a staunch opponent of the central banking system and wants to get rid of the Argentine peso in favor of it. U.S. Dollar.

Stocks also saw gains at the start of the shortened holiday week as investors continued to interpret the latest inflation data as a sign that the Federal Reserve is raising interest rates. The CME FedWatch tool shows that traders are now pricing in a 30% chance that a rate cut could happen as soon as March.

At market close, the S&P, Dow and Nasdaq were up 0.74%, 0.58% and 1.13%, respectively.

Data provided by Trading View shows Bitcoin broke above $37,000 on Sunday after Javier Meili became president-elect of Argentina, and continued to rise in trading on Monday despite the spot BTC ETF not being approved. At the time of writing, BTC is trading at $37,530, up 1.4% on the 24-hour chart.

BTC/USD chart by TradingView

“November Bitcoin Futures Prices” surged in the futures market due to Sunday’s rally. [were] According to Jim Wyckoff, senior technical analyst at Kitco, early U.S. trading was strong on Monday.

Bitcoin futures 1-day chart. Source: Kitco

“There is still an uptrend in price on the daily bar chart, but the bulls need to show more strength soon to keep it alive,” Wyckoff said. “The recent high volatility at higher price levels is not bullish. BTC bulls still have the short-term technical advantage overall.

MN Trading analyst Gunter Lackmann sees the 8-day exponential moving average (EMA) as providing support at these levels, but warns that there is a strong possibility of a pullback before BTC reaches the next level that could break the previous range. Takes it to higher levels again.

BTC/USD 1-day chart. Source: MN Trading

“BTC price is mostly consolidating above the 0.382 Fibonacci retracement level and mostly holding above the 8EMA, combined with an ascending triangle type of chart structure,” Lackman said. “The RSI is still above 60, pointing to additional strength in the continued uptrend.”

“Until the support of 8EMA and 0.382 Fibonacci level is lost, longs may be preferred, keeping the $35,800 – 36,850 area as an area of ​​interest,” he said. “If (once) the support of the 8EMA and 0.382 Fibonacci level is lost (multiple daily candle closes + struggle to get back above those levels) then I will start looking for shorts in the market, but for now My target area for is still $40 – 42k. Possible retest of the highs of the previous range around $30 – 31.5k.”

Market analyst Crypto Tony also sees a decline in the cards for Bitcoin, and said the market is now entering an “accumulation phase” where declines are worth buying.

$BTC , $USD – Updates

Once we reach around $39,000 – $40,000 I would expect us to move down for the next leg. This phase 2 is the accumulation phase, where we make some attractive purchases. Don’t be afraid of this stage and the coming fall. pic.twitter.com/2bWd3Pweyf

– Crypto Tony (@CryptoTony__) 20 November 2023

And in response to repeated inquiries about whether Bitcoin “will drop to $30,000” before the ETF is approved, crypto analyst Pentoshi said Said, “No one can know this. Understand this. It’s all probability-based. I think your best shot is max 32-33k, if one comes.”

Altcoin rotation continues

It was a mixed day of trading for altcoins, with some of the top 200 tokens recording slight declines.

Daily cryptocurrency market performance. Source: Coin360

Scale (SKL) led the gainers with a rise of 43.5%, followed by a 17.5% rise for Acceler (AXL) and a 10.7% rise for Illuvium (ILV). The biggest decliners were Caspa (KAS), which fell 12.1% to trade at $0.132, while Worldcoin (WLD) declined 11.8% and Celestia (TIA) dropped 9.8%.

The total cryptocurrency market cap is now $1.42 trillion, and Bitcoin’s dominance rate is 51.6%.

Disclaimer: The views expressed in this article are those of the author and may not reflect his views Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is solely for informational purposes only. This is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. And the author of this article is not responsible for any loss and/or damage caused by the use of this publication.

Source: www.kitco.com