This Week in Bitcoin: BTC Dips to $60,000

Following a dream run over the last month, Bitcoin (BTC) slid by almost 10%, just as the U.S. Dollar Index reached a 16-month high.

The Fundamental Look

BTC fell precipitously over the last week, establishing an intraday low near $58,500 on November 17. This comes after the original cryptocurrency notched its worst daily performance since September 2021 just as President Joe Biden signed off on the $1-trillion infrastructure bill alongside new taxation policies for cryptocurrency investors.

The bullish sentiment seems to be gradually fading amidst market uncertainty and ongoing strength in the U.S. Dollar as rate hike odds rise.

After implementation over the weekend, the highly anticipated Taproot upgrade didn’t have much of an impact on market sentiment, potentially suggesting a deeper near-term pullback.

Still, investors remain undeterred, which is underscored by the latest report from CoinShares. Per the report, inflows to Bitcoin-based digital asset investment products reached $6.5 billion year-to-date through the week ending November 12, up by $98 million from the prior week as total assets under management (AUM) pushed to a record high of $56 billion.

In other news, Bitcoin exchange reserves continue to plummet. Daily withdrawals are on the rise as investors pull assets from centralized exchanges and transition to cold storage, according to Glassnode.

Per its most recent report, withdrawals this week had hit as high as 5,000 BTC. At the same time, new Bitcoin wallets are piling up coins after newly established wallets recorded 516,914 transactions, an increase of 72% over the last three months. 

In other news, a dormant BTC whale wallet containing 2,207 BTC has just emerged from an eight-year hiatus, moving a million dollars worth of BTC out of the wallet for the first time.

As BTC prices take another pause, whales are doing what they do best. On-chain data from November 16 indicates that the third-largest Bitcoin whale just added another 207 BTC to their stack, taking their total BTC holdings to a whopping 193,433.46915660 BTC.

In terms of adoption, Magnum Real Estate Group, a high-profile U.S. property management firm, is ready to sell a set of retail condos in NYC for $29 million to be paid exclusively in BTC. Payments giant Mastercard (MA) has announced plans to release Asia Pacific’s first crypto-like payment card, enabling users to pay for goods and services using BTC and other cryptocurrencies. 

Whales Of The Week

• November 11: 6,925.621 BTC moved from multiple addresses to an unknown wallet
• November 11: 37,510.031 BTC moved from multiple addresses to an unknown wallet
• November 12: 178,009.985 BTC moved from multiple addresses to Bitfinex
• November 12: 10,000.000 BTC moved from Bitfinex to an unknown wallet
• November 12: 5,295.558 BTC moved between unknown wallets
• November 14: 3,569.965 BTC moved between unknown wallets
• November 15: 15,078.200 BTC moved between unknown wallets
• November 15: 4,317.017 BTC moved between unknown wallets
• November 16: 10,000.000 BTC moved from multiple addresses to Binance
• November 16: 9,969.493 BTC moved from multiple addresses to Bitfinex

The Technical Take

After nosediving on November 16 and continuing its slide Wednesday, BTCUSD is is trending towards the bottom of a multi-week range. Week over week, Bitcoin prices tumbled by 9.9% but still managed to outperform peers Ethereum and Cardano, which slumped 12.7% and 15.7%, respectively, against the U.S. dollar over the same period.

At present, the BTCUSD pair is trending just above the lower bound of a range near $58,500 beginning from mid-October.

However, given the steep incline of the latest reversal lower, the Stochastic Oscillator is beginning to indicate that the pair has overshot to the downside and is slightly oversold. Any upside crossover of the %K and %D line and move to retake the 20.0 level could signal a price rebound.

Looking at the key levels, any deeper decline below the 50-day moving average sets up the BTCUSD pair for a retest of support at $58,500 and then secondary support at $57,300. On the upside, $60,000 remains the psychological level to watch ahead of resistance at $61,750 and $63,200.

Disclosure: At the time of publication, Reuben Jackson did not have a position in any of the securities mentioned in this article.

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