Bitcoin has shown resistance to the recent negative news regarding Binance demand and has not declined much. Consolidation remains prominent, perhaps a rally to $37,000.
After the release of the latest Fed minutes, when the FOMC declared that there would be no rate hikes, the price of Bitcoin fell shortly after, dropping 4%. As a result, the overall crypto market fell to $1.42 trillion with bearish market sentiment.
At press time, Bitcoin (BTC) was trading at $36,759.38, reflecting a 24-hour trading volume of $29 billion. In the last 24 hours, Bitcoin has seen a 1.63% drop in its price, while in the last 7 days it has seen a 2.65% increase.
Analyst Claims Bitcoin Could Test $35,000 Support
Bitcoin (BTC) experiences fluctuations over shorter time periods, marked by the closing of long and short positions, leading to a decrease in open interest (OI), according to crypto analyst CrediBull.
In response to the current market turmoil, traders are undertaking deleveraging efforts, adjusting their positions to potential risks. The recent updates from the Department of Justice finding Binance guilty of money laundering and suing them with a fine of $4 billion have created a FOMO in the market.
The analyst compares the current scenario with previous events, such as the SEC case against Coinbase, analyzing historical trends. Despite an expected response in a critical zone, there is a gap, and funding briefly turns negative before returning to a low/neutral level.
Source: X
The analyst further maintains that open interest on lower time frames, such as on the 1-hour chart, is reducing as more and more accumulation occurs. Significant deleveraging is evident as OI retreats to levels prior to the last market rally. In particular, Coinbase spot is seeing buying activity as perpetual futures sellers close positions, aligning with expectations for buyers to intervene.
In particular, the rebound from a 35.5k demand zone is significant for the ongoing consolidation. The market is closely monitoring these levels and assessing the implications for the broader accumulation range.
Analysts see a short-term scenario with a limited range between 35k and 37k as spot premium yield, indicating a possible bottom of the market.
Recently, the Bitcoin hash rate recorded an all-time high of 546.58 million on November 19, 2023. The rising hash rate is part of the approach to Bitcoin’s halving, which is important to raise the level of blockchain difficulty.
Overall, Bitcoin has not shown any movement or lows until the Binance verdict and is on the positive side today.
Also Read: $4.3 Billion Binance Deal Boosts Predictions on Bitcoin ETF Rise
Bitcoin price performance so far
As soon as Binance pleaded guilty, Binance’s net Bitcoin outflow exceeded 15,000. This change marks FOMO among investors, which was due to the fact that Binance has to settle $4 billion with the Department of Justice.
On the daily chart, Bitcoin is showing a tilted channel pattern indicating a bearish outcome ahead. This is the same as what the analyst predicted earlier. As the accumulation weakens, the current price level will definitely test the $35,000 support.
On the other hand, the relative strength index (RSI) is at 56, marking a neutral relationship between bears and bulls.
