The total crypto market capitalization slumped from close to $238 billion on Nov. 18 to a low of about $189 billion on Nov. 22. That is a drop of just over 20% within four days. However, despite the sharp fall in prices, the Bitcoin miners remain unfazed as the hash rate on Nov. 23 was close to its previous all-time highs.
Cardano (ADA) creator Charles Hoskinson tweeted that the current price drop was due to the FUD created by the media news and market manipulation. He reminded the crypto community that crypto is unstoppable and is the future as it will change the world. He expects Bitcoin’s price to rise above $10,000 and eventually reach $100K.
Crypto market data weekly view. Source: Coin360
Bakkt futures volumes skyrocketed on Nov. 22 and hit a new all-time high of 2728 futures contracts, which was about 30% higher than the previous high hit on Nov. 8. Along with the volumes, the open interest also increased 29% over the previous day.
On Nov. 22, Bitcoin prices recovered from their lows, which shows buying by the institutional players at lower levels. Our assumption of accumulation by the large players will be invalidated if the prices continue to drop and the open interest increases. That will indicate shorting.
The next few days will give us a better picture of whether this is the start of another bear phase or if this a great time to invest. Let’s look at the critical levels to watch out for, both on the upside and the downside.
Bitcoin (BTC) prices took a beating on the news that Chinese authorities had raided and shut down the Shanghai offices of leading cryptocurrency exchange Binance. Though Binance rebutted the media reports, the damage had already been done.
Analysts at a Bloomberg panel discussion said that BTC becomes more appealing during times of global uncertainty. They also agreed that BTC would eventually become a store of value and act as digital gold. Has the current fall dented the technical picture beyond repair or is this the last…