Bitcoin prices have been experiencing relative calm since early November.

getty

Bitcoin prices have been displaying relative stability lately, fluctuating within a relatively modest range after declining in early November.

Just before midnight last night EST, the digital currency experienced some gains, rising to $17,412.97, CoinDesk data shows.

At this point, it was trading at its highest since early November, additional CoinDesk data shows.

Since then, the cryptocurrency pulled back, and it was trading close to $17,050 at the time of this writing.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Over the last several weeks, the broader digital currency markets, as well as the companies in this particular sector, have been feeling the impact of the collapse of troubled exchange FTX.

On November 11, FTX Group, which comprises FTX Trading Ltd. (FTX.com) and over 100 affiliated companies, declared that it had filed for Chapter 11 bankruptcy protection, according to a company announcement that was posted on Twitter.

Earlier this year, the company had been valued at as much as $32 billion when it raised $400 million in a funding round.

While bitcoin prices did drop notably in early November, they have since experienced greater stability.

‘A Critical Period’ For Bitcoin

“This is a critical period for BTC.” said Tim Enneking, managing director of Digital Capital Management.

“On the one hand, the post-FTX drop to $15.5k may have signaled a bottom. This morning’s (in the US) move to almost $17.5k, the highest level in nearly a month, supports that,” he said, referencing the recent upward movement.

However, he emphasized how economic strength could give Federal Reserve policymakers greater incentive to reign in red-hot inflation figures.

Enneking pointed out the latest figures from the Institute for Supply Management, which revealed that the U.S. Services Purchasing Managers Index, a measure of how quickly the nation’s sector is expanding or contracting, stood at 56.7 in November.

This figure pointed to expansion, and it surpassed the 53.3 figure predicted by economists taking part in a Reuters poll.

Should Fed officials make take a more aggressive approach to hiking benchmark rates, it could create additional headwinds for risk assets, including stocks and cryptocurrencies such as bitcoin.

Technical Analysis

In addition to highlighting important macroeconomic considerations, Enneking pointed out some key levels of support and resistance for the world’s most prominent digital currency.

“Going forward, we see BTC fighting to move up against the downward pressure, running into major resistance at each $1,000 level (as we’ve seen over the past week at $17k), and even stronger resistance at $20k,” he stated.

“Should BTC lose the fight, $15.5k will be a decisive level. If that breaks, $14k will come into play.”

Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, also offered perspective on this particular subject.

“We’re watching the $18,000 and $21,300 level on the upside to give encouragement to the bulls,” he stated.

“As for the downside, we’re watching the recent YTD lows around $15,500. Holding this support level is important to let investors know that the vicious downtrend could possibly be coming to an end.”

Moving On

While the collapse of …….

Source: https://news.google.com/__i/rss/rd/articles/CBMigwFodHRwczovL3d3dy5mb3JiZXMuY29tL3NpdGVzL2Nib3ZhaXJkLzIwMjIvMTIvMDUvYml0Y29pbi1wcmljZXMtaGF2ZS1iZWVuLWhvbGRpbmctdXAtd2VsbC1sYXRlbHktd2hhdHMtbmV4dC1mb3ItdGhlLWNyeXB0b2N1cnJlbmN5L9IBhwFodHRwczovL3d3dy5mb3JiZXMuY29tL3NpdGVzL2Nib3ZhaXJkLzIwMjIvMTIvMDUvYml0Y29pbi1wcmljZXMtaGF2ZS1iZWVuLWhvbGRpbmctdXAtd2VsbC1sYXRlbHktd2hhdHMtbmV4dC1mb3ItdGhlLWNyeXB0b2N1cnJlbmN5L2FtcC8?oc=5

Leave a comment

Your email address will not be published. Required fields are marked *