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Weekly Crypto Brief 25th November

Weekly Comment 

Recent reports in the media have suggested that Binance and Bithumb, two major crypto exchanges, have closed their offices in Shanghai following raids by Chinese Police. However both companies have claimed the rumours are not true. Binance mentioned that such an operation would be impossible as it does not have offices within the city, and Bithumb insisted that its Shanghai team is continuing to operate “steadily without pause”. It has been noticed that Binance has been subject to a spate of negative articles in the Chinese media and journalists have been asked to check whether their sources are telling the truth. On Saturday CEO CZ vowed to sue The Block, accusing the industry media outlet of false reporting.

China has been keeping a watchful eye on crypto exchanges that are operating illegally in the city of Shenzhen. Authorities there have identified 39 platforms that have fallen afoul of the country’s trading ban. Analysts have claimed this crackdown will mainly focus on Ponzi Schemes and crypto frauds with PrimitiveCrypto founding partner Dovey Wan claiming that Shenzhen has become a “hub” for such companies. CZ has actually welcomed China’s stance, telling Wan: “This is actually a very good thing to happen, cleaning up the industry of scammers and fraudsters”.

Keeping on the topical conversation of China, the central bank recently told businesses involved with cryptocurrencies to correct any improper actions, and warned investors to be wary of virtual currencies. This has come back up following the recent promotion of blockchain technology. “Problematic firms” that have conducted publicity campaigns, or have offered other services to offshore crypto exchanges, have been ordered to take immediate corrective action or exit the business, said the bureau, adding it will continue to regulate the industry. They also wanted to press on investors not to become confused between “cryptocurrencies” and the “blockchain”.

Have a great week.

 

 

Past Week Talking Points

  • Google searches for “Bitcoin” spike after BTC price hits 6-month lows
  • Bakkt Bitcoin futures set new daily record trading over $20M
  • European Investment Fund unveils €400M Blockchain AI initiative
  • “We think there’s a lot of promise to blockchain technology. It’s intriguing to us, but it really needs to do something that the traditional rails can’t do.”  Dan Schulman, PayPal CEO
BTC Price: $6,854.84

Last 7 Days: -16.48%  1month: -25.13%  12months: +80.09%

BTC Technicals:
Last week wasn’t the best of times for the overall crypto market, especially not Bitcoin. We saw the top cryptocurrency take a nasty turn and started a decline well below the $8,000. Once this level broke, the bearish momentum gained pace and moved the price further below the $7,800 support and the 100 simple moving average (4-hours). This created a wave of investors being stopped out and taken out on the way down, and even after this drop we saw the price of BTC sharply drop further below the $7,500 support with bears testing the $7,000 support area (the first bearish target as per the medium term outlook). Towards the end of the week the price spiked down below $6,900 and a new multi-month low was formed near the $6,779 level.

Currently, the BTC price is trading slightly lower at $6,709 with any upward correction bringing resistance near the $7,400 level. Alongside this, there is another breakdown pattern forming with support near $7,240 on the 4-hours chart of BTC. If there is a further bear run and break below $7,225 and $7,200, there are chances of more downside losses in the near term. It looks like the fight will be taken below $7,000 and the support will be broken heading closer towards $6,800. The main target for the bears seem to be the $6,500 support area. On the upside, the price must break the triangle resistance and $7,400. Besides, the 50% Fib retracement level of the last decline from the $8,213 high to $6,776 low is near the $7,500 level. The key resistance is near the $7,550 level and a connecting bearish trend line on the same chart. A clear break above the $7,500 and $7,550 resistance levels could set the pace for more gains and an increase in price before the year is over.

BTC Volume:

18th November: $21,579,470,673  (BTC Price of $8,573)
25th November: $45,820,617,107  (BTC Price of $6,982)

112% increase in trading volume in the last 7 days

 

 

Last 7 Days Big Market Movers

1.   BitBall                                         BTB                  $0.044960                    1522.72%
2.   DUO Network Token                   DUO                 $0.136771                    188.09%
3.   GoNetwork                                  GOT                 $0.014037                    129.24%

 

 

ETH Price: $143.48
Last 7 Days: -19.47%  1month: -21%  12months: +29.88%

Ethereum Technicals:

Over the past week, Ethereum also took a hit and declined heavily after it broke the key $172 support level. We saw ETH trade below multiple key supports near the $170 and $165 levels. There was also a break below the $150 support with the price settling well below the 100 simple moving average (4-hours). A new multi-month low was formed near $139 and the price recently corrected higher, but is correctly trading unchanged. ETH broke the $145 and $150 resistance levels on its recent upside correction. Even recovering above the 23.6% Fib retracement level of the downward move from the $177 high to $138 low. However, the price faced a strong resistance near the $155 level, and is now currently trading lower. It is worth taking note that there is a major breakout pattern forming with resistance near $152 on the 4-hours chart of ETH/USD. Therefore, a believable true upside break above the $152 and $155 resistance levels could be an indication that the price will recover in the near term. The main resistance is near $160 but a clear break above the $155 and $160 resistance levels could start a decent recovery. The price could even recover towards the $172 resistance. On the downside, an immediate support is near the $150 level. If there is a downside break below the $150 support, bears will take the price lower and are likely to retest $140. Any further downside blows may perhaps open the doors for a push towards the $132 and $130 support levels. The next major support is near the $125 level, where the bulls may emerge and reclaim their game.

 

 

Market Cap. Dominance:

BTC:  66%
ETH:  8.24%
XRP:  4.99%

Other ALT-Coins: 20.77%

 

 

This newsletter is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments  or participate in any investment (or other) strategy.