Bitcoin (BTC) took fresh aim at $38,000 into Nov. 23 as an “aggressive bid” dispelled cold feet over Binance’s $4.3 billion fine.
Bitcoin analysis: “Something is cooking”
Data from Cointelegraph Markets Pro and TradingView showed BTC price strength making a striking comeback to top out at $37,870.
A subsequent cooling off kept the market near $37,500, with the mood markedly different from just 24 hours prior.
Then, concerns over United States legal action against the largest exchange, Binance, sparked a cascade of long liquidations, which only ended at one-week lows.
#Bitcoin Almost back to the top of the range.
The $38K level remains my main level of interest. https://t.co/N0K3DHIV4w pic.twitter.com/J9ZTWbusu3
— Daan Crypto Trades (@DaanCrypto) November 23, 2023
The bounce ended up equally impressive, however, and appeared to catch some market participants by surprise with its intensity.
“BTC — some thick buy walls over on the spot Binance market,” popular trader Ninja reacted on X (formerly Twitter).
“Have not seen such an aggressive bid for a while. Something is cooking.”
A popular narrative once again involved a potential U.S. go-ahead for a Bitcoin spot price exchange-traded fund (ETF), something that could be just less than 50 days away.
Events at Binance, as Cointelegraph reported, may have provided a timely backdrop for the first U.S. approval of the long-awaited institutional investment product.
Grayscale updated their #Bitcoin ETF application!
There is definitely something going on. pic.twitter.com/WbWcv7iN8a
— Mister Crypto (@misterrcrypto) November 23, 2023
Analyzing the situation, fellow trader Pentoshi likewise suggested that the stars might be aligning for BTC price upside thanks to ETF-induced demand.
Regardless of price action, he added, the approval would mean “the beginning of substantial multi decades of tradfi allocation.”
Here’s a simple thesis. Game theory
49 days until etf
Many Sidelined people
Each passing day = more pressure to allocate as the clock ticks
Dips possible. But the window is closing
Will it be a local top? Maybe. Will it be the beginning of substantial multi decades of…
— Pentoshi euroPeng (@Pentosh1) November 22, 2023
Continuing, Samson Mow, CEO of Bitcoin adoption firm Jan3, nonetheless brought back a $1 million Bitcoin unit price at the hands of the new institutional capital inflows.
“It has come to my attention that there are some Bitcoiners that don’t think Bitcoin can reach $1,000,000 in a matter of days/weeks after ETF money starts to flow in. They’re in for a pleasant surprise,” he said.
RSI “reset” boosts short-term bullish thesis
Eyeing the prospect of upside returning, social media commentator Cold Blooded Shiller was among those bullish on relative strength index (RSI) values.
Related: BTC price returns key profit mark to Bitcoin exchange users at $34.7K
These had been reset by the trip to weekly lows, he concluded, paving the way for another impulse higher.
This was the case not only for Bitcoin but also for Ether (ETH) and some other major altcoins.
“The reason this is so important is that usually when the RSI is in this position it’s the basis for a fresh position,” he wrote in part of the accompanying commentary.
“Strong trending markets tend to hold this level. Getting down towards that ‘cool off’ region indicates corrections are complete and trend resumes.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
