Market Watch Nov 16: Bitcoin Struggles to Break Out Of $16,000 Level But Shows Resilience.
Bitcoin nearly reclaimed the $17,000 zone but slipped back to the $16,000 level. The crypto market took a hard hit because of FTX’s fall. There is a tight consolidation above a support level suggesting that a volatile move is around the corner.
At the time of writing this article, Bitcoin was holding at $16,955 and Ether was at $1,263. Altcoins have recorded a slight upward movement. Uniswap gained nearly 6%, Ripple’s XRP 3.89% in the last 24 hours, Cardano 2.91%, Solana 2.18%, and Polygon 1.98%.
Edware Moya, the senior market analyst for Oanda, believes that Bitcoin is showing resilience but it’s hard to imagine investors are ready to test the waters until the market learns more of the full contagion risk associated with FTX. He said if more exchanges or crypto companies pause withdrawals or limit activity, that will put pressure on cryptos. Moya highlighted that a possible BlockFi bankruptcy could present crypto markets with their next big test. In his latest brief, the analyst noted that the next domino to fall appears to be BlockFi. Moya outlined that contagion from FTX was widely expected to impact BlockFi despite its denial that the majority of its assets are trapped at the fallen crypto exchange.
Seth, a crypto trader and analyst, says a fresh bullish divergence on the weekly chart was something to feel confident about. He said bears took credit for the FTX blackswan, and not many knew that the second largest exchange was going bankrupt. Matthew Hyland, another crypto analyst, said the previous two crosses resulted in -46% and -57% moves after the cross was confirmed.