. Daily Crypto Analysis - Bitcoin Soars 6%, Hits $42K, Defies Terra Crash.

Daily Crypto Analysis – Bitcoin Soars 6%, Hits $42K, Defies Terra Crash.

Daily Crypto Analysis – Bitcoin Soars 6%, Hits $42K, Defies Terra Crash.

04 Dec 2023

Introduction

Welcome to the latest update on the cryptocurrency market. In focus today, Bitcoin has surged over 6% in the past 24 hours, reclaiming levels not seen since the Terra market crash in May 2022. The cryptocurrency giant reached an impressive $42,100 before experiencing a slight pullback to $41,600, marking a complete retracement to levels above $41,000 in early May 2022 and showcasing a remarkable 150% surge in value since the beginning of the year.

Market In Focus Today – BTC/USD

Bitcoin Surges Above $42,000, Rebounding to Pre-Terra Crash Levels

Bitcoin Surges Over 6% in 24 Hours, Returning to Pre-Terra Crash Levels The price of Bitcoin has witnessed a remarkable increase of over 6% in the past 24 hours, reaching levels not seen since the Terra market crash in May 2022. The largest digital asset by market capitalization soared to $42,100 before experiencing a slight pullback to $41,600. This marks a complete retracement to Bitcoin’s levels above $41,000 in early May 2022 and signifies a staggering 150% surge in value since the beginning of the year. The overall cryptocurrency market cap has concurrently risen to $1.62 trillion, indicating a 4.0% increase in the last 24 hours. This market cap level has not been reached since late April 2022. Elevated Trading Volumes and Liquidations November recorded a substantial surge in cryptocurrency exchange trading volume, surpassing $826 billion, the highest monthly volume since March of the same year. Onchain data reveals that Bitcoin’s daily trading volume has risen from over $30 billion on December 1 to the current level of $32 billion, reaching a yearly high and the highest level since November 2022. In the past 24 hours, 75,887 traders were liquidated, with total liquidations exceeding $216 million. The majority of these liquidations were related to short positions, with $166 million shorts being liquidated compared to just over $50 million in long positions. Leveraged Bitcoin positions worth over $86 million were liquidated in the last 24 hours, with over $76 million in shorts and approximately $10 million in long positions. Performance of Other Cryptocurrencies Several other major cryptocurrencies showed modest gains on Monday. Ether rose by over 4%, maintaining a position above $2,250, while BNB experienced a marginal uptick of over 2%, reaching a current price of $234. Solana traded relatively flat over the past 24 hours, hovering around the $63.50 mark.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 38965.15 | Positive Crossover | Bullish
  • MA 20 : 37968.23 | Positive Crossover | Bullish
  • MA 50 : 35488.20 | Positive Crossover | Bullish

Simple :

  • MA 10 : 38560.06 | Positive Crossover | Bullish
  • MA 20 : 37812.49 | Positive Crossover | Bullish
  • MA 50 : 35395.58 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 76.26 | Neutral Zone | Neutral

Stochastic   Oscillator : 92.54 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 42117 R2 : 45248
  • S1 : 37800 S2 : 35500

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion : Limit Buy : 42117 | Take Profit : 45248 | Stop Loss : 39796

Elsewhere In The Crypto Market

Ethereum (ETH) Achieves 2023 High, Surges to $2,250 Amid Positive Market Trends Ethereum’s (ETH) price experienced a significant surge, reaching a new high for 2023 at $2,250, reflecting the broader positive momentum in the cryptocurrency market as it heads towards the end of the year. This notable upward movement in Ethereum corresponds with Bitcoin’s persistent efforts to surpass the $41,000 level, which it successfully achieved at the time of writing with a price of $41,437. Analysts believe that the approval of a BlackRock spot ether instrument could attract institutional capital into Ethereum, positioning it as the second-largest cryptocurrency network globally. Ethereum’s Price Rally Recent charts display an upward trajectory, sparking optimism among analysts and investors who anticipate Ethereum reaching the coveted $3,000 mark in the coming weeks or months. Interestingly, a crucial on-chain trade statistic revealed a substantial move just 24 hours before the recent price breakout. Ethereum 2.0 stakers made an unexpected withdrawal of 169,220 ETH (approximately $337 million) from ETH 2.0 beacon chain Proof of Stake contracts on December 2. This withdrawal marked the second-highest staking withdrawal amount since the Ethereum Shapella Upgrade enabled withdrawals in April 2023. Resilient Rebound and Bullish Market Signals The recent break beyond the $41,000 barrier for Bitcoin has infused optimism into the cryptocurrency market. Ethereum’s price recovered from the psychologically significant $2,000 threshold, boasting an 8% weekly increase to its current trading price of $2,250. A classic sign of a bull market is the formation of higher lows and higher highs, and Ethereum’s daily chart reflects this pattern. While the 50-day and 100-day moving averages initially served as dynamic resistance, the price has now overcome both. The cryptocurrency market has been experiencing positive momentum in tandem with lower yields, similar to gold, according to crypto data firm Amberdata. Lucy Hu, Senior Analyst at Metalpha, noted increasing market expectations for a rate reduction in the coming year, declaring an official start to a bull run with potential additional price increases in the coming weeks. Amidst these positive developments, investor optimism regarding potential Bitcoin ETF applications from major asset management firms is on the rise. It is important to note that while favorable developments may encourage investment, stricter regulations could pose risks. Other influential factors include investor sentiment and the overall economic conditions. The potential for ETH to surpass Bitcoin in market valuation remains uncertain and depends on factors such as adoption rates and network improvements. Currently, Bitcoin maintains a significantly larger market capitalization.

Key Economic Events & Data Release Today:

8:30PM(IST)-USD-Factory Orders m/m