Market Update (Nov. 22, 2022)
According to one chart analyst, bitcoin (BTC) and ether (ETH) are currently showing signs of weakness amid lingering concerns over FTX contagion, but some believe that BTC, the leading cryptocurrency by market cap, will remain relatively resilient.
"We expect bitcoin to outperform in the coming months," Katie Stockton, founder, and managing partner at Fairlead Strategies said in a note to clients after considering the bitcoin-ether ratio's recent move above the 50-day simple moving average (MA).
In light of ETH's newfound deflationary appeal, Stockton's forecast has been at odds with the expectations of several fundamental analysts who believe ETH will continue to outperform bitcoin over the coming years.
The bitcoin-ether ratio crossed above the 50-day MA on Sunday and stood at 14.50 at press time.
The 50-day MA, one of the most commonly tracked technical lines, has historically been reliable as a breakout point. The ratio's three of the previous four moves above the average brought sharp gains.
The latest breakout validates the bullish "higher low" of 12.70 created early this month. A higher low is formed when selling runs out of steam at a level higher than the preceding price low and is considered the first signal of an impending bearish-to-bullish trend change.
"The bitcoin versus Ether ratio has cleared the 50-day MA after making a higher low earlier this month," Stockton said. "Next resistance for the ratio is at the 200-day MA, a breakout above which would target the June highs, with little resistance in between."
At press time, the chart showed the 200-day SMA resistance at 14.82, ahead of the Oct. 13 high of 15.74.
Market Analysis:
Market Cap: $802,932,378,392
24H Volume: $63,405,449,680
BTC Dominance: 38.6%
ETH Dominance: 17.2%
Health Standard: 22.48 (1 to 10)
Sentiment: -27.19% (-100% to 100%)
Binance Analysis (BTC Pairs):
Gainers:
• VIDT: +102%
• CRV: +24%
• POLYX: +23%
Losers:
•  BETA: -20%
•  FIDA: -17%
•  RLC: -15%
Binance Futures:
Top Gainers:
•  LEVER/USDT: +56.52%
•  CRV/USDT: +29.11%
Top Losers:
•  FTT/USDT: -15.60%
•  RLC/USDT: -12.98%
Largest Volume (24h)
•  ETH/BTC (7,112 BTC)
•  LTC/BTC (1,289 BTC)
Daily Outlook
Sentiment has decreased considerably along bearish volume over the last 48 hours for both BTC and top alts. We can expect to have higher-than-usual volatility during the next few weeks for both BTC and alts, which will determine where we’ll be heading for the next few months.
Bitcoin Recap
Yesterday's highlighted support level has turned into a clear S/R flip for Bitcoin. The news last night that the Genesis exchange bankruptcy could be closer, led to the support being broken.
The retest on the hourly chart clearly shows that level as the new resistance in the $15.9k area.
A very interesting 24-36 hours ahead, with the rumors that Genesis has a deadline of the end of Wednesday to raise funding.
If Bitcoin can regain $16k then I will be looking for longs, but until then I have my eyes on good levels for a bounce below where we are currently trading.
Recapitulating Ethereum
At the moment, Ethereum is priced at $1,098 and has a 24-hour trading volume of $11 billion. Over 7% of Ethereum’s value has been lost in the past day. As of right now, CoinMarketCap ranks second on the list with a market capitalization of $138 billion as of right now. There are currently 122,373,866 ETH coins in circulation.
Ethereum is trying to regain the $1,100 level on the 4-hour chart. The bottom of the congruent triangle formed by ETH/USD has been broken, indicating the possibility of a significant bearish continuation.
As for the upside, the previously breached triple bottom should act as a major resistance below the 50-day moving average, raising the potential for a significant resistance at $1,215 on the chart.
Candles closing below this mark could push ETH below the $1,075 or $1,000 support range.
Market Scoop
Crypto:
🔹 Crypto lender Genesis says no plans to file bankruptcy imminently.
🔹 Curve releases whitepaper and official code for its stablecoin.
🔹 Bitcoin miner Core Scientific has lost $1.7 billion this year.
🔹 Binance CEO met with Abu Dhabi investors about the industry recovery fund.
🔹 Magic Eden expands NFT support to Polygon network.
Forex & Stocks:
🔹 Crude oil higher; Saudi Arabia dismisses output hike report.
🔹 Eurozone consumer confidence rises by more than expected in Nov.
🔹 Meta spokesperson denies report of CEO Zuckerberg stepping down next year.
🔹 FTX holds a $1.24 billion cash balance and reports fresh cyberattacks.
🔹 Huawei separates Russia's business from other CIS countries.