Bitcoin (BTC) took a big drop early this week, but then bounced back again. Bitcoin struggled to break through $16,600 yesterday and then dipped to $16,350.
Last night, bitcoin broke through and then peaked at $16,770. However, at the time of writing, the BTC price is dropping to $16,570 on Binance and $15,900 on Bitvavo. Bitcoin is back in the same tight range.
The bitcoin price returns to the same price as 24 hours ago. Trading volume fell 4% in the past 24 hours. The total market capitalization is $318 billion and the dominance is 38.2%. The Fear & Greed Index comes out at 20 (Extreme Fear).
FOMC minutes & Thanksgiving
Yesterday the minutes of the last Federal Open Market Committee (FOMC) were published. However, these FOMC minutes did not trigger much in the crypto market.
The Federal Reserve intends to slow down its rate hike policy, but has no plans to stop just yet. This is in line with what the market had already expected. The Fed is expected to raise interest rates next time by 0.5% instead of 0.75%.
The next FOMC meeting will take place on December 13 and 14, right after the release of the consumer price index (CPI).
As the news certainly did not come as an unpleasant surprise to the markets, most closed in the green yesterday. Today, however, markets in the US remain closed for Thanksgiving. The volume on the crypto market is also likely to be lower than normal.
DXY at crucial point
Meanwhile, the US dollar index (DXY) is approaching its 200-day moving average. Does the DXY find enough support to rise again or will the price continue its downward trend of recent weeks? DXY has risen sharply this year and has a very high negative correlation to bitcoin this year.
Old Mt. Gox bitcoin on the move
Analyst Ki Young Ju, founder of CryptoQuant, reports that seven-year-old BTC is moving again. These bitcoins come from the infamous Mt. gox hack. The analyst says it is usually bearish when such old BTC are moving.
Bitcoin reached bottom or deeper?
With bitcoin recently holding near its annual low of $15,500, many analysts are speculating that the price may have reached a bottom. However, opinions on this are strongly divided. For example, the well-known analyst Il Crypto Capo expects that bitcoin will still fall to the zone between $12,000 and $14,000.
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