Bitcoin (BTC) rose just above $17,000 this week after the cautiously positive speech by the Federal Reserve chairman. That the price met resistance here was no surprise and bitcoin did not go above $17,250.
Yesterday the price dropped to $17,000 and lost its grip last night. Still, the support around $16,900 seems to be holding for now. Bitcoin tops out at $16,960 on Binance and $16,100 at the time of writing. on Bitvavo.
This puts the bitcoin price down 1.1% today. The trading volume fell by 16% in the past 24 hours. The total market capitalization is $326 billion and the dominance is 38.2%. The Fear & Greed Index comes out at 27 (Fear).
FTX crash creates bitcoin self custody
While the Fed speech may have offered some hope to investors, the macroeconomic situation remains very poor. Equity markets therefore closed in the red yesterday.
Also, we may not have seen the end of all the consequences of the FTX fiasco yet. The market therefore remains very cautious. Still, the FTX crash had a positive side effect when it comes to self-custodyor self-preservation:
I guess one good thing to come out of the FTX fiasco.
live chart: https://t.co/kkfA9HZj4M pic.twitter.com/aOQJogzzOW
— Philip Swift (@PositiveCrypto) December 1, 2022
Lots of resistance between USD 17,000 and USD 19,000
Meanwhile, Phi Deltalytics reports that short-term holders are still selling their BTC at a loss. Therefore, there will be a lot of resistance around $18,000, the analyst believes, who warns to be careful once the price gets here.
Traders Still Selling in Losses
“Such lack of faith gives rise to a strong resistance at 18k, the rough average cost of entry for short-term participants.”
by @phi_deltalytics— CryptoQuant.com (@cryptoquant_com) December 1, 2022
Analyst Material Indicators also warns of a lot of resistance. However, he thinks that the resistance around $17,600 (the June wick) may have moved to $19,000.
Here’s a look at the #Bitcoin order book on @binance ahead of the economic reports. $22M of the $32M sell wall around $17.6k has been moved above $19k. It appears the rest has either been distributed or is laddered up to ~$18k. pic.twitter.com/CrTx6ofpao
— Material Indicators (@MI_Algos) December 1, 2022
Bitcoin miners send 10,000 BTC to exchanges
We have been writing for a long time that bitcoin miners are under heavy pressure due to the low price, high costs and high competition. Gradually we see more and more signs of capitulation among miners.
Yesterday, more than 10,000 BTC from Poolin was sent to exchanges. That is most likely with the intention of selling the BTC. This kind of selling pressure can push the price back down.
📢BREAKING
10000 $BTC outflow from Miners!💡 pic.twitter.com/a7jPERPMZk
— IT Tech (@IT_Tech_PL) December 1, 2022
massive #Bitcoin outflows from miner wallets yesterday. 🚨
Miner reserves dropped by almost 10.2k $BTC yesterday. ⚒️
Hash rate is also trending lower. ⛓️
We are starting to see some miner capitulation. pic.twitter.com/SpsqCAX2Ey
— Jan Wustenfeld (@JanWues) December 1, 2022
10 year old BTC on the move
In addition, Dutch analyst Maartunn warns that 400 10-year-old BTC is moving. That’s usually too bearish for the course.
10 year old 400 $BTC moved today. Last time they moved in 2012 (!!)😱https://t.co/n8ChJys0Fi pic.twitter.com/Nr1FlfUSRC
— Maartunn (@JA_Maartun) December 1, 2022
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