Thu 28 Nov 2024 ▪
3
min reading ▪ by
Fenelon L.
The crypto market is experiencing a significant correction at the end of November 2024, with bitcoin hovering around $93,400. This 6% drop since Monday comes as technical indicators signal a worrying bearish divergence. Meanwhile, Ethereum is showing signs of resilience near its key resistance.
A technical correction expected for bitcoin
Bitcoin began a marked correction this Wednesday, November 28, after reaching a new all-time high of $99,588 last Friday. This 7% drop took the leading crypto to a low of $90,791 on Tuesday, before a slight rebound above $93,400.
Technical analysis reveals a worrying bearish divergence on the Relative Strength Index (RSI). Indeed, as price formed a new high on Friday, the RSI posted a lower high, a classic signal of a potential near-term reversal.
According to Ryan Lee, chief analyst at Bitget Research, bitcoin is expected to move in a range between $85,000 and $120,000 in December. A potentially bullish factor could come from Microsoft, which is reportedly considering acquiring Bitcoin, subject to approval from its board of directors.
Ethereum and Ripple: divergent trajectories
Ethereum is showing resilience in the face of the market correction, trading around $3,420 and approaching its weekly resistance at $3,454. Ethereum ETF inflows hit an all-time high of $300 million in a single day in November, reflecting growing interest from institutional investors.
Ripple, on the other hand, is showing signs of technical weakness after losing its weekly support at $1.40. The RSI indicator in the overbought zone at 82 suggests that a deeper correction could occur, with a potential downside target at $1.12.
The change in leadership at the SEC, with Gary Gensler expected to leave in January 2025, could bring new life to the crypto market. His potential successor, Paul Atkins, is considered more favorable to the crypto ecosystem, which could positively influence the sector’s outlook for 2025.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
