Bitcoin Bounces Back as Market Shows Strength
Bitcoin (BTC) made a strong recovery on November 23, reaching $38,000 as concerns over Binance’s $4.3 billion fine faded away. The price of BTC surged to $37,870 before cooling off and stabilizing around $37,500. This marked a significant change in sentiment compared to just 24 hours prior when fears of U.S. legal action against Binance caused a series of long liquidations.
Market participants were surprised by the intensity of the bounce, with popular trader Ninja commenting on the aggressive bid seen on the spot Binance market. This led to speculation that something big was happening in the market.
One popular narrative centered around the potential approval of a Bitcoin spot price exchange-traded fund (ETF) in the U.S., which could be less than 50 days away. The recent events at Binance may have provided a timely backdrop for the approval of this long-awaited institutional investment product.
Fellow trader Pentoshi suggested that the approval of a Bitcoin ETF would lead to increased demand and upside potential for BTC price. He believed that this would mark the beginning of substantial multi-decade traditional finance allocation to Bitcoin.
Samson Mow, CEO of Bitcoin adoption firm JAN3, added to the positive sentiment by stating that Bitcoin could reach $1 million in a matter of days or weeks once the ETF money starts flowing in.
Technical analysis also pointed to a bullish thesis for Bitcoin. The relative strength index (RSI) values had been reset by the recent dip to weekly lows, suggesting that the correction was complete and the upward trend would resume. This sentiment applied not only to Bitcoin but also to Ether (ETH) and other major altcoins.
Disclaimer: This article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.