This week saw significant developments in the cryptocurrency industry, with the Department of Justice imposing a historic fine on Binance and the platform acknowledging serious charges that led to the forced resignation of Changpeng Zhao. Despite the seriousness of these events, the eventual Bitcoin market response was very weak. Surprisingly, the initial panic that followed the revelation of this news dissipated within a short period of 24 hours, and the market quickly resumed its course. It is worth noting that the market is building strongly on recent developments that indicate a potential shift in the balance of power within the digital currency industry, with institutional investors offering their support. Industry experts, in commenting on the Binance settlement with the US authorities, stressed that it is in the interest of the market. Furthermore, the growing rhetoric around transparency in the sector is believed to boost the likelihood of a Bitcoin exchange-traded fund being approved, a development that has significantly impacted the market in recent months.
Bitcoin has been moving sideways in the $35,500-$37,500 range within the ascending channel in November. At this point, we notice that the cryptocurrency, which crossed the Fibonacci extension zone according to the recent downward momentum, turned the Fibonacci value of 1,618 into support. In November, medium resistance formed in the narrow range of $37,500-$38,000. Just above this resistance, a second resistance line may form at $38,500-$38,600 in the short term.
Is Bitcoin likely to reach $40,000?
According to the short-term price action, Bitcoin, which saw increasing demand again in the second half of the week, could see its next stop in the $40,000 area if it can achieve a weekly close above the resistance line in the $38,000 range. This potential trend is supported by the Stochastic RSI, which tends to break out of the oversold zone on the daily chart, and Bitcoin price remains above the short-term Exponential Moving Average (EMA) values. On the other hand, if buyers fail to generate... Enough volume to enter the $38,000 range, we can see that the cryptocurrency could pull back towards $35,800, a short-term support within the range action, with sellers present.
