Market
picture
Bitcoin
remains near $20.6K, maintaining positive momentum from the previous US session.
Yesterday we saw an aggressive bearish attempt to trigger a bitcoin sell-off,
pushing the rate down 2% in less than an hour. Still, in the area near $20.3K,
the buying has outweighed, and we see systematic intraday buying going forward.
The intraday dynamics of Bitcoin’s price point to a neat set of long positions
and buying on declines. This does not promise a rally in crypto anytime soon,
but it does indicate a growing interest in long-term investments in the sector.
In a year
since the BTCUSD price peaked near 69K, the market has gone through two stages
of collapse and has been in a long consolidation since June, reinforcing
confidence that the bottom is behind us.
Bitcoin posted moderate gains in October (+4.1%, to $20,400) but was worse than
the S&P 500 (+8%). November is considered a successful month for BTC,
adding 7 out of 11 last times.
The average
growth in the previous 11 Novembers has been 24%, while the average decline has
been 17%. In the first case, BTC could end November around $25,300, renewing
August’s highs. In the second, it could end November around $16,900, continuing
the year’s lows.
Dogecoin has returned to growth, adding 16% since the start of the day on
Monday. Like BTC, DOGE bottomed in June and traded in a deafening sidewall
until last week. Its surge of 140% in seven days has formed a promising bullish
picture. Is it possible that it will become a leader in the entire crypto
market? Why not.
News background
The
Hong Kong authorities have issued a statement relaxing cryptocurrency and
crypto-ETFs restrictions and promised to create a dedicated agency to regulate
the industry.
According to Bloomberg reports, the US Department of Justice has reopened a
probe into possible bank fraud by executives of USDT, the company behind
Tether. The Tether team issued denials, stressing that they are in constant
dialogue with law enforcement agencies, including the US Department of Justice.
This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.