Crypto Recharged Over The Weekend

Cryptocurrency

Summary:

Market Picture

The crypto market has recharged over the weekend. Positive traction resumed on Monday after the crypto market’s total capitalisation shrank by 150 billion from Saturday’s high near $3.39 trillion to Sunday’s low. We saw more profit-taking by retail traders, and buying resumed during trading hours, setting the stage for inflows from institutional traders due to increased risk appetite in global markets.

Bitcoin approached the $100K level on Friday but failed to break through and, at one point, pulled back below $96K. This looks like an intra-week correction. On Monday morning, we saw buying dominate again, taking the price back to $98.2K. The persistence of the recent pattern suggests that Bitcoin will reach the $106K level by the end of the week.

Ethereum is trading near $3400, close to the November highs. A move above $3450 could spark more active growth, with a potential target at $4000-4100, the area of the year’s highs.

News Background

According to SoSoValue, net inflows into US spot bitcoin ETFs totalled a record $3.38 billion last week, bringing total inflows since bitcoin ETFs approval in January to $30.84 billion.

Solana updated the all-time high previously set in 2021 on the back of four filings with the SEC to launch spot Solana ETFs. The Chicago Board Options Exchange (CBOE) published Forms 19b-4 for these funds.

VanEck reiterated its September Bitcoin forecast. The target price for the first cryptocurrency in the current cycle is $180,000. Several key indicators suggest that the next phase of the bull market has just begun.

According to The Block, Ethereum’s daily transferred on-chain value reached $7.13 billion, the highest since the beginning of the year. This indicates a recovery in network activity amid the cryptocurrency market rally.

Trump is expanding the number of cryptocurrency supporters in a future administration. He has nominated hedge fund manager Scott Bessent as Treasury Secretary. According to CNN, Trump is considering appointing former Bakkt CEO Kelly Leffler as Secretary of Agriculture.

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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Economic

Global Macro and Markets

Global Markets: US Treasury yields fell sharply yesterday. The yield on 2Y USTs fell 10.6 basis points to 4.269%, while 10Y yields fell 12.7bp to 4.273%. This all appears to be related to the news we reported in this note yesterday about the picking of Scott Bessent to be the next Treasury Secretary, which markets have received well. Since then, there have also been headlines reporting Donald Trump as saying that he would impose an additional 10% tariffs on China and 25% on Mexico and Canada, which will add some further volatility. More positively, there are reports also that a ceasefire may be days away in the Middle East between Israel and Hizbollah.

There was less euphoria in the equity markets. Both the NASDAQ and S&P 500 rose about 0.3% yesterday, while Chinese stock indices lost between 0.4 and 0.5%. EURUSD pushed back above 1.05 but is sitting just below that level now. Other G-10 currencies have also made further gains against the USD, though the AUD remains roughly unchanged at about 65 cents. Asian FX also had a positive day on Monday, led by the previous laggards, the KRW and TWD. The MYR also made decent gains. USDINR has dropped to 84.29 from 84.5 and USDCNY is down to 7.2462.

G7 Macro: There wasn’t a whole lot going on in macro-land yesterday. Just some more bad German Ifo data, but that will have surprised no one. Macro was well down the pecking order from political appointments and other noise yesterday. There is more macro data today, but none of it is particularly interesting. The US Conference Board’s consumer confidence data is probably the main release of the day, but there are also various housing-related numbers published. Early tomorrow morning Asia time (03:00 SGT/HKT) we get the FOMC minutes of the last meeting published. The commentary from FOMC members has been mixed since then, with some suggesting greater caution, but others (Kashkari overnight) indicating December remains open for further easing. Markets reflect this, with just a 55% chance of a December cut priced in. The minutes may shift the needle slightly one way or another.

Singapore: After a sharp decline in non-oil domestic exports in October, we suspect there may be some downside risk to the consensus forecast for a 2.0% MoM (2.6%YoY) increase in October industrial production published at 13:00 SGT.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Economic

The Megaphone Trading Pattern, also known as the Broadening Formation, is a powerful technical chart pattern that can provide valuable insights for traders looking to capitalize on market volatility. As the name suggests, the pattern resembles a megaphone with widening price swings, making it one of the most distinct chart patterns to spot in any market. In this article, we’ll explore what the Megaphone Pattern is, how to trade it effectively, and how to manage risk to maximize your potential for success.

What is the Megaphone Trading Pattern?

The Megaphone Trading Pattern is a chart formation that appears when the price of an asset swings widely in both directions, creating a series of higher highs and lower lows. This creates a shape similar to a megaphone, with the upper and lower trendlines diverging as the price moves. The pattern can appear in any time frame, from minutes to daily charts, and is most commonly seen in highly volatile markets.

Traders recognize the Megaphone pattern by its characteristic wide price fluctuations and the fact that the pattern lacks a defined upward or downward direction. It represents market indecision, with buyers and sellers battling for control, which often leads to high volatility.

How to Identify the Megaphone Pattern

To spot a Megaphone Pattern, you need to look for the following features:

Higher Highs and Lower Lows: The most defining feature of the Megaphone Pattern is its series of progressively higher peaks and lower troughs. These fluctuations should become more pronounced as the pattern develops.

Trendlines Diverging: The upper trendline should connect the higher highs, and the lower trendline should connect the lower lows. Both lines will show an expanding formation, where the distance between the highs and lows grows wider over time.

Volume Increase: In many cases, volume will increase during the formation of the pattern, particularly at the breakout points. This is a sign of market participation and can signal the continuation of the trend after the breakout.

Long Duration: The Megaphone pattern is typically formed over a longer time period, sometimes weeks or months. This allows the price to make several large swings in both directions before the breakout occurs.

How to Trade the Megaphone Pattern

When trading the Megaphone pattern, the key is to anticipate the breakout once the pattern is fully formed. Here are several strategies to help you trade the Megaphone pattern effectively:

1. Wait for a Breakout

The best time to enter a trade is after the price breaks out of the upper or lower trendline of the Megaphone pattern. A breakout above the upper trendline signals that buyers have gained control and could push the price higher. Conversely, a breakdown below the lower trendline suggests that sellers have taken charge, and the price may continue lower.

Entry Strategy:

Enter a long position when the price breaks above the upper trendline.Enter a short position when the price breaks below the lower trendline.

Stop Loss Strategy:

Place a stop-loss just below the breakout point for a long position or just above the breakout point for a short position.If the price retraces and fails to break out, exit the trade to minimize losses.

2. Use Support and Resistance Levels

The price levels where the pattern's highs and lows occur are important areas of support and resistance. By identifying these levels, you can better anticipate potential breakout points. Often, the price will struggle at these levels before making a decisive move.

Example:

If the price repeatedly tests the lower trendline and fails to break below it, this indicates strong support. Conversely, repeated tests of the upper trendline that fail to break higher indicate resistance.

3. Trade with Momentum

The Megaphone pattern often results in rapid price movements once a breakout occurs. To take advantage of this momentum, look for confirmation of the breakout with volume. An increase in trading volume during the breakout indicates that the move is supported by market participants, increasing the likelihood of a sustained trend.

Example:

If the price breaks out above the upper trendline with a surge in volume, you can expect a strong move upwards. Similarly, a break below the lower trendline with high volume suggests that the downward move may continue.

4. Risk Management

Trading the Megaphone pattern can be risky due to its volatile nature. It's essential to use proper risk management techniques to protect your capital. Ensure you set appropriate stop-loss orders and consider using trailing stops to lock in profits as the price moves in your favor.

Risk Management Tips:

Limit your risk per trade to 1-2% of your trading capital.Use stop-loss orders to protect yourself in case the breakout turns out to be a false signal.Avoid entering trades too early in the pattern’s formation. Wait for a confirmed breakout before committing your capital.

Common Pitfalls to Avoid

While the Megaphone pattern can be a lucrative trading opportunity, it does come with its challenges. Some common pitfalls to avoid include:

False Breakouts: One of the risks of trading the Megaphone pattern is false breakouts. The price may appear to break above or below the trendlines but then quickly reverse, causing losses. This is why waiting for confirmation with volume is crucial.

Overtrading: Given the pattern’s volatility, it can be tempting to enter trades prematurely. However, it’s essential to wait for the pattern to complete before making any decisions to avoid being caught in erratic price movements.

Lack of Risk Management: The large price swings associated with the Megaphone pattern can lead to significant losses if you're not careful. Always use stop-loss orders and carefully monitor your trades to protect your capital.

Conclusion

The Megaphone Trading Pattern is an excellent tool for traders looking to capitalize on high volatility and significant price swings. By identifying the pattern early and waiting for a confirmed breakout, traders can enter trades with the potential for substantial gains. However, it's crucial to manage risk effectively, as the pattern's volatility can also lead to large losses if not approached with caution.

By understanding the structure and behavior of the Megaphone pattern, along with using solid technical analysis and risk management techniques, traders can effectively navigate these market fluctuations and make the most of their trading opportunities.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Glendon

Economic

In the world of financial trading, Contracts for Difference (CFDs) have become a popular and efficient way for traders to speculate on price movements without owning the underlying asset. Among the various types of CFDs, Index CFDs are widely used by traders looking to capitalize on movements in stock market indices. But how exactly does an Index CFD work, and why are they so popular? In this comprehensive guide, we’ll break down the mechanics of Index CFDs, their benefits, and key strategies for trading them effectively.

What is an Index CFD?

An Index CFD is a derivative contract that allows traders to speculate on the price movements of a stock market index. Unlike traditional index investing, which involves buying shares of all companies that make up the index, an Index CFD gives traders exposure to the overall performance of the index without actually owning the underlying assets.

Popular indices such as the S&P 500, NASDAQ 100, Dow Jones, and FTSE 100 are often available as CFDs. With an Index CFD, you are essentially agreeing to exchange the difference in the index’s value from the time the contract is opened to when it is closed, making it possible to profit from both rising and falling markets.

How Does an Index CFD Work?

Trading an Index CFD is similar to other forms of CFD trading, but instead of trading individual stocks, you are speculating on the price movement of a whole index. Here’s a step-by-step breakdown of how it works:

1. Choose the Index CFD to Trade

To begin, traders select an index CFD from a broker’s list of available markets. Common indices available for CFD trading include:

S&P 500: Tracks 500 of the largest U.S. companies.

NASDAQ 100: Tracks 100 of the largest non-financial companies on the NASDAQ stock exchange.

Dow Jones Industrial Average (DJIA):

Includes 30 of the largest publicly traded U.S. companies.

FTSE 100: Represents 100 of the largest companies listed on the London Stock Exchange.

Each of these indices reflects the overall performance of a basket of stocks within a specific market or sector.

2. Open a Position

Once an index is chosen, the trader can open a position on the CFD. The position can either be long (buy) if the trader believes the index will rise or short (sell) if they expect the index to fall.

Long Position (Buy):

If you anticipate that the index will rise in value, you open a long position. This allows you to profit from the increase in the index’s value.

Short Position (Sell):

Conversely, if you believe the index will fall, you open a short position. This allows you to profit from a decrease in the index’s value.

3. Leverage and Margin

One of the key features of CFD trading is leverage, which allows traders to control a larger position with a smaller initial investment. This means that traders can potentially make higher profits (or losses) compared to traditional index investing.

Leverage: A broker will provide leverage, which amplifies both profits and losses. For example, a 10:1 leverage means that for every $1 you invest, you control $10 worth of the index.

Margin: The margin is the amount of capital required to open a CFD position. It is a fraction of the total value of the contract and varies depending on the broker and the index you are trading.

4. Monitor Market Movements

Once the position is opened, traders will monitor market movements closely. Index CFDs react to changes in the market sentiment, economic reports, corporate earnings, geopolitical events, and other macroeconomic factors.

For example, a strong earnings report from major companies within an index may drive the value of that index up, leading to a potential profit for those holding a long position.

5. Close the Position

When the trader decides to exit the trade, they close the position. The profit or loss is calculated based on the difference between the opening and closing prices of the index. If the price has moved in favor of the trader’s position, they make a profit. Conversely, if the price moves against the position, a loss occurs.

Profit Calculation:

For example, if a trader opens a long position on the S&P 500 at 4,000 and closes it at 4,050, they would make a profit based on the movement of 50 points multiplied by the size of their position.

Loss Calculation:

If the index moves against the position, the trader would incur a loss.

Advantages of Trading Index CFDs

Leverage and Flexibility: CFDs allow traders to use leverage, meaning they can control larger positions with a smaller capital outlay. This offers the opportunity for significant profit, but also comes with higher risk.

Access to Major Indices: Index CFDs provide access to a wide range of global indices, such as the S&P 500, FTSE 100, or Nikkei 225, allowing traders to diversify their portfolio without needing to buy individual stocks.

Short-Selling Opportunities: With Index CFDs, traders can profit in both rising and falling markets. If the index declines, traders can take short positions and profit from the drop.

No Ownership of Underlying Stocks: When trading Index CFDs, there’s no need to own the stocks that make up the index. This eliminates the need for dividend payments or corporate governance concerns, making the process simpler and faster.

Risks of Trading Index CFDs

High Risk Due to Leverage: While leverage can amplify profits, it also magnifies losses. Traders must be cautious and use risk management strategies like stop-loss orders to mitigate potential losses.

Market Volatility: Index CFDs are highly sensitive to market volatility. Sudden market movements, economic reports, or geopolitical events can lead to rapid price fluctuations, causing both gains and losses.

Costs and Fees: Some brokers may charge overnight financing fees if a position is held for a prolonged period. These costs can eat into profits, particularly for traders holding positions long-term.

Key Strategies for Trading Index CFDs

Trend Following: Identifying the direction of the overall market trend can increase the chances of successful trades. For example, trading long positions during bullish trends or short positions during bearish trends.

Economic Indicators: Monitoring economic reports, such as GDP, unemployment data, and interest rates, can provide insights into the future performance of indices.

Risk Management: Using stop-loss and take-profit orders helps to limit potential losses and lock in profits at predefined levels.

Conclusion

Index CFDs offer traders a flexible and powerful way to speculate on the performance of stock market indices. By understanding the mechanics of Index CFDs, including leverage, margin, and risk management strategies, traders can capitalize on price movements in global markets. However, due to the volatility and leverage involved, it’s essential to approach Index CFD trading with caution and a clear trading plan.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Glendon

Economic

In the world of stock market trading, terms like "bull market" and "bear market" are commonly heard, but one term that may not be as frequently discussed, yet plays a crucial role in market trends, is "consolidation." While consolidation is often associated with periods of uncertainty or indecision, understanding this market phenomenon can offer traders and investors valuable insights into price action, trend reversals, and entry or exit points. In this article, we will explore what consolidation is in the stock market, why it happens, and how traders can use it to their advantage.

What is Consolidation in the Stock Market?

Consolidation refers to a phase in the stock market where a security’s price moves within a specific range without showing a clear direction — neither trending upward nor downward. It is a period of stabilization after a significant price movement (either up or down), where the stock's price fluctuates within a relatively narrow range. This "pause" in movement reflects a temporary balance between buyers and sellers, where neither side is able to establish dominance.

Consolidation typically happens after strong price movements, whether bullish or bearish. For example, after a rapid rally, the price may stabilize and move sideways for a while, as traders and investors digest recent gains or losses. The market is "catching its breath," so to speak, before determining the next major move.

Why Does Consolidation Happen?

There are several reasons why consolidation periods occur in the stock market:

Market Exhaustion: After a strong move, whether upward or downward, the market may need time to rest before continuing in either direction. This pause is an opportunity for traders to assess the market's current state and adjust their positions accordingly.

Balance of Supply and Demand: Consolidation happens when buying and selling pressures are in equilibrium. Buyers are not willing to pay higher prices, and sellers are not willing to accept lower prices. This creates a "standoff" between the two sides, resulting in a sideways price movement.

Uncertainty and Lack of Catalysts: During periods of uncertainty, such as awaiting earnings reports, economic data releases, or geopolitical events, market participants may become hesitant to take strong positions, leading to a consolidation phase.

Market Participants Waiting for a Breakout: Traders often wait for a breakout from the consolidation range before deciding to make a move. This is especially true when the market is in a wait-and-see mode, with participants looking for confirmation of either a continuation of the prior trend or a reversal.

Identifying Consolidation Patterns

Consolidation periods are often visually identifiable on price charts, and several chart patterns and indicators can help traders recognize these phases:

Sideways Channel (Range-Bound Movement): A classic consolidation pattern is a sideways trading range, where the price fluctuates between clear support and resistance levels. These ranges can last for days, weeks, or even months, depending on the security.

Triangles: Consolidation can also form triangle patterns, where price action narrows, creating a "cone" or "triangle" shape. The two most common triangle patterns during consolidation are:

Symmetrical Triangle:

This occurs when both support and resistance levels are converging at the same rate. It signals indecision in the market, with traders anticipating a breakout in either direction.

Ascending/Descending Triangles:

These patterns form when one side (support or resistance) is flat while the other side slopes. Ascending triangles typically have an upward breakout potential, while descending triangles suggest downward movement.

Flags and Pennants: These patterns typically follow a sharp price movement and then consolidate within a small range. Flags have a rectangular shape, while pennants resemble small triangles. Both are often considered continuation patterns.

Moving Averages: Traders also use moving averages (such as the 50-day or 200-day MA) to identify consolidation. When the price trades near the moving average with little deviation, it could indicate a consolidation phase.

How Long Does Consolidation Last?

The length of a consolidation phase can vary greatly. Some consolidations last only a few hours, while others can last for several weeks or even months. The key factor influencing the duration of consolidation is the overall market sentiment. If there is uncertainty or if market participants are waiting for major news or events, consolidation can extend longer. Conversely, if a catalyst triggers a breakout, the consolidation phase may be short-lived.

How Can Traders Use Consolidation?

Traders can take advantage of consolidation phases by using a few key strategies:

1. Range Trading

During consolidation, prices move within a well-defined range between support and resistance. Traders can look to buy near support and sell near resistance, taking advantage of price fluctuations within that range. This strategy works best when the market shows clear consolidation and lacks a clear trend.

2. Breakout Strategy

One of the most common strategies employed during consolidation is the breakout strategy. A breakout occurs when the price moves outside of the consolidation range, signaling a potential new trend. Traders look for a breakout above resistance (for a bullish move) or below support (for a bearish move). Volume plays an important role in confirming the strength of a breakout — higher volume often indicates a stronger move.

3. Trend Reversal Strategy

While consolidation often leads to continuation patterns, it can also signal a potential trend reversal. For example, if a stock has been in a strong downtrend and enters a consolidation phase, traders may anticipate a potential reversal once the price breaks above the consolidation range. Technical indicators, such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD), can help confirm reversal signals.

Indicators to Watch During Consolidation

Several technical indicators can help identify consolidation phases and guide traders’ decisions:

Relative Strength Index (RSI): When the RSI is near 50, it indicates that the market is neither overbought nor oversold, which is common during consolidation.

Bollinger Bands: During consolidation, the price will often trade within the bands, which tighten as volatility decreases.

Volume: Low volume during consolidation signals a lack of conviction in the market, while an increase in volume could indicate an impending breakout.

Conclusion

Consolidation is an important concept in the stock market that all traders should understand. It represents a period of price stabilization after a strong movement, where the market pauses before determining its next direction. Traders can use consolidation phases to employ range trading strategies, prepare for potential breakouts, or look for trend reversals. By recognizing consolidation patterns and employing effective trading strategies, traders can position themselves for success in any market environment.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Warren Takunda

Cryptocurrency

Bitcoin pulled back below $96,000 on Nov. 24, suggesting that short-term traders are booking profits near $100,000. Corrections are a part and parcel of every bull phase, where newbie traders panic, but experienced traders view the dips as a buying opportunity.

The prediction markets are projecting a breakout above $100,000 in 2024. Data from betting platform Kalshi suggests an 81% possibility of Bitcoin being at $100,000 or higher on Dec. 31. The median forecast is for Bitcoin to reach $122,000 by the new year. Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_1

Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_1

Crypto market data daily view. Source: Coin360

Another bullish voice is that of Georgii Verbitskii, the founder of the TYMIO decentralized finance platform, who told Cointelegraph that Bitcoin could rally between $100,000 and $120.000 by the end of 2024 or early 2025. As more traders join the party, Verbitskii expects Bitcoin to extend its up move to $180,000 by the end of 2025.

What are the critical support levels in Bitcoin and altcoins that are likely to attract buyers? Let’s look at the top 5 cryptocurrencies that look strong on the charts.

Bitcoin price analysis

Bitcoin is facing resistance near the psychologically crucial level of $100,000, but a positive sign is that the bulls have not ceded much ground to the bears. Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_2

Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_2

BTC/USDT daily chart. Source: TradingView

The rising moving averages and the relative strength index (RSI) in the overbought zone indicate the path of least resistance is to the upside. If buyers shove the price above $100,000, the BTC/USDT pair is likely to pick up momentum and dash to $113,331 and later to $125,000.

The first support on the downside is at the uptrend line and then at the 20-day exponential moving average ($88,386). If the price rebounds off the 20-day EMA, the bulls will again try to resume the uptrend. A short-term top will be signaled when the pair plunges below $85,000. Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_3

Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_3

BTC/USDT 4-hour chart. Source: TradingView

The pair dipped below the 20-EMA on the 4-hour chart, indicating that the bears are attempting a comeback. The next support on the downside is the uptrend line. If the price rebounds off the uptrend line, the bulls will again attempt to propel the pair above $100,000. If they do that, the pair may surge to $113,331.

Alternatively, a break below the uptrend line will signal a lack of demand at lower levels. The pair may drop to $85,000.

BNB price analysis

BNB rallied above the $667 resistance on Nov. 23 and again on Nov. 24, but the long wick on the candlestick shows selling at higher levels. Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_4

Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_4

BNB/USDT daily chart. Source: TradingView

The 20-day EMA ($619) is the critical support to watch out for on the downside. If the price bounces off the 20-day EMA, the bulls will again try to propel the BNB/USDT pair to $722. This level may again act as a formidable hurdle, but if crossed, the rally could reach $810.

If bears want to prevent the upside, they will have to swiftly pull the price below the moving averages. If they do that, it will indicate that the markets have rejected the breakout. The pair may decline to the uptrend line. Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_5

Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_5

BNB/USDT 4-hour chart. Source: TradingView

The bulls purchased the dip to the breakout level of $635 and pushed the price above the 20-EMA. Buyers will try to push the price to $688, which is again expected to behave as a stiff resistance. However, if buyers overcome this barrier, the pair may rally to $722.

On the contrary, if the price turns down and breaks below $635, it will suggest that the bears are selling on every relief rally. The pair may drop to the 50-SMA and later to $600.

Avalanche price analysis

Avalanche broke above the resistance line of the ascending channel pattern on Nov. 22, but the bulls are facing selling at higher levels. Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_6

Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_6

AVAX/USDT daily chart. Source: TradingView

The AVAX/USDT pair could retest the breakout level from the channel. If the price rebounds off the resistance line with strength, it will indicate that the bulls have flipped the level into support. The pair may then attempt an upward move to $50.

Alternatively, if the price breaks below the resistance line, it will suggest that the bulls are losing their grip. The pair may drop to the 20-day EMA ($34.34), attracting buyers again. Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_7

Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_7

AVAX/USDT 4-hour chart. Source: TradingView

The pair is witnessing a tough battle between the bulls and the bears near the 20-EMA. If the price rises above the 20-EMA, the bulls will again try to push the pair toward the psychological level of $50.

Meanwhile, the bears are likely to have other plans. They will try to sell the rallies and pull the pair below the 50-SMA. If they succeed, the pair may descend to $32 and subsequently to $31.

NEAR Protocol price analysis

NEAR Protocol pierced the $6.50 overhead resistance on Nov. 24, but the bulls could not sustain the breakout. Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_8

Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_8

NEAR/USDT daily chart. Source: TradingView

The price could dip to the 20-day EMA ($5.48), which is a crucial support to watch out for. If the price rebounds off the 20-day EMA with force, the bulls will try to propel the NEAR/USDT pair to $8.58 and then to $9.01.

On the downside, a break and close below the 20-day EMA will suggest that the breakout above $6.50 may have been a bull trap. The pair could plunge to the 50-day SMA ($4.86), extending the stay inside the large $3.42 to $6.50 range for some more time. Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_9

Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_9

NEAR/USDT 4-hour chart. Source: TradingView

The price rebounded off the moving averages on the 4-hour chart, indicating that the bulls continue to buy the dips. If the price rises above $6.50, the bulls will try to start the next leg of the up move by clearing the overhead hurdle at $6.80.

Conversely, if the price turns down from $6.50 or $6.80, it will signal selling on rallies. That increases the risk of a break below the moving averages. The pair may tumble to the uptrend line and, after that, to $5.

OKB price analysis

OKB has been attempting a trend change by forming a series of higher highs and higher lows. Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_10

Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_10

OKB/USDT daily chart. Source: TradingView

The OKB/USDT pair accelerated after breaking out of $48 on Nov. 23, clearing the path for a possible rally to $62 and thereafter to $68.

The $48 level is expected to behave as a support during pullbacks. If the price rebounds off the $48 level, it will signal that the sentiment remains positive, and traders are buying on dips.

However, if the $48 support cracks, the pair could fall to the 20-day EMA ($44.79). The deeper the fall, the greater the time needed for the up move to resume. Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_11

Bitcoin Price Dip May Spur Buying Spree in BNB, AVAX, NEAR, and OKB_11

OKB/USDT 4-hour chart. Source: TradingView

The bears are trying to halt the rally at $56.74, but the bulls are in no mood to surrender. The pair is likely to find support at $51 and then at the 20-EMA. If the price turns up from the current level or the 20-EMA, it will indicate buying on dips. That will improve the prospects of a rally above $56.74.

This optimistic view will be negated in the near term if the price dives below the 20-EMA. The pair may then drop to the 50-SMA.

Source: Cointelegraph

Risk Warnings and Disclaimers

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Warren Takunda

Stocks

December S&P 500 E-Mini futures are up +0.45%, and December Nasdaq 100 E-Mini futures are up +0.57% this morning as investors welcomed Scott Bessent’s nomination as U.S. Treasury Secretary, while also awaiting the publication of the minutes of the Federal Reserve’s latest policy meeting as well as the release of the Fed’s favorite inflation gauge and other key economic data later in the week.

Market participants viewed Donald Trump’s selection of Scott Bessent as Treasury Secretary as a prudent choice that could bring greater stability to the U.S. economy and financial markets. Bessent, the head of macro hedge fund Key Square Group, has signaled support for Trump’s tariff and tax cut plans, but investors anticipate he will prioritize economic and market stability over pursuing political gains.

In Friday’s trading session, Wall Street’s major equity averages ended higher. Super Micro Computer climbed over +11% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after announcing that it expects to file its delayed 10-K and 10-Q reports in the period available under Nasdaq rules. Also, Copart advanced more than +10% after reporting better-than-expected FQ1 revenue. In addition, Elastic N.V. surged over +14% after the AI enterprise search company posted upbeat FQ2 results and raised its full-year guidance. On the bearish side, Intuit slumped more than -5% and was the top percentage loser on the S&P 500 and Nasdaq 100 after the tax and accounting software company issued below-consensus FQ2 guidance.

Economic data released on Friday showed that the U.S. S&P Global manufacturing PMI rose to a 4-month high of 48.8 in November, in line with expectations. Also, the U.S. November S&P Global services PMI climbed to a 2-1/2 year high of 57.0, better than expectations of 55.2. At the same time, the University of Michigan’s U.S. November consumer sentiment index was revised lower to 71.8 from the preliminary reading of 73.0, weaker than expectations of 73.7.

“The U.S. flash PMIs for November were bullish in aggregate thanks to strength in services,” stated Vital Knowledge’s Adam Crisafulli, noting that the details indicated a goldilocks scenario, “with favorable growth developments and cooling price pressures.”

Meanwhile, the U.S. stock markets will be closed on Thursday in observance of the Thanksgiving Day Holiday. Also, the stock markets will close early on Black Friday, with trading ending at 1 p.m. Eastern Time.

The highlight of this holiday-shortened week will be the October reading of the U.S. core personal consumption expenditures price index, the Fed’s preferred inflation gauge. Also, investors will be monitoring a spate of other economic data releases, including U.S. GDP (second estimate), the CB Consumer Confidence Index, Building Permits, the S&P/CS HPI Composite - 20 n.s.a., New Home Sales, the Richmond Manufacturing Index, Durable Goods Orders, Core Durable Goods Orders, Initial Jobless Claims, Wholesale Inventories (preliminary), the Chicago PMI, Pending Home Sales, Personal Income, Personal Spending, and Crude Oil Inventories.

Market participants will also focus on earnings reports from several high-profile companies. Prominent tech firms such as Dell Technologies, HP Inc. , Analog Devices, Workday, and CrowdStrike, along with retailers like Best Buy, Dick’s Sporting Goods, and Macy’s , are scheduled to release their quarterly results this week.

In addition, investors will closely monitor the release of the Federal Reserve’s minutes from the November 6-7 meeting on Tuesday. The report will offer details on the policymakers’ discussion during the November meeting, where they decided to lower interest rates by a quarter percentage point, and may shed light on the central bank’s future rate-cut plans.

U.S. rate futures have priced in a 56.2% chance of a 25 basis point rate cut and a 43.8% chance of no rate change at December’s policy meeting.

The U.S. economic data slate is mainly empty on Monday.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.343%, down -1.52%.

The Euro Stoxx 50 futures are up +0.56% this morning as U.S. President-elect Donald Trump’s Treasury Secretary nomination and dovish remarks from a European Central Bank official boosted sentiment. Technology stocks led the gains on Monday. A survey showed on Monday that German business sentiment fell more than expected in November. “The German economy is floundering,” Ifo President Clemens Fuest said. Meanwhile, ECB chief economist Phillip Lane stated that the central bank’s policy should not stay restrictive for an extended period, while also acknowledging that inflation will require more time to ease to the 2% target. Market participants are awaiting the release of Eurozone preliminary inflation data for November, scheduled for Friday, which will provide insights into the size of the ECB rate cut in December. In corporate news, Banco Bpm Spa gained over +1% after UniCredit SpA launched an unexpected 10 billion euros ($10.45 billion) all-share offer for the lender.

Germany’s Ifo Business Climate Index, Germany’s Business Expectations, and Germany’s Current Assessment data were released today.

The German November Ifo Business Climate Index has been reported at 85.7, weaker than expectations of 86.1.

The German November Business Expectations came in at 87.2, stronger than expectations of 87.0.

The German November Current Assessment arrived at 84.3, weaker than expectations of 85.4.

Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.11% and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.30%.

China’s Shanghai Composite Index closed slightly lower today, reflecting continued investor disappointment over the absence of stronger fiscal measures to rejuvenate the nation’s economy. Also, impending U.S. trade tariffs and uncertainty regarding U.S. policies toward China kept sentiment subdued. The People’s Bank of China maintained a key policy rate unchanged in November after previously cutting it in September, providing no fresh catalyst for the market. China’s central bank on Monday infused 900 billion yuan ($124.26 billion) of liquidity into the banking system through its one-year medium-term lending facility at an unchanged rate of 2.00%. This contrasts with a total of 1.45 trillion yuan of such loans due this month, resulting in a net drain of 550 billion yuan in November. Meanwhile, The Guardian reported that the U.S. is expected to unveil new export restrictions to China this week, potentially adding up to 200 Chinese chip companies to a trade restriction list. On the positive side, a separate report indicated that China and Germany were close to reaching a resolution regarding tariffs on Chinese EV imports into the bloc. Investors’ attention this week is centered on Chinese PMI and industrial profit data.

Japan’s Nikkei 225 Stock Index ended in the green today, hitting its highest level in over a week. Electronics and chemical stocks led the gains on Monday. Japanese shares also mirrored Wall Street’s positive finish on Friday as signs of U.S. economic strength boosted hopes for earnings growth. Data from the Cabinet Office released on Monday showed that Japan’s leading economic indicators index, which gauges the economic outlook for a few months ahead based on data such as job offers and consumer sentiment, was revised downward in September. Meanwhile, investors are focused on Tokyo’s inflation data, set for release on Friday, after Bank of Japan Governor Kazuo Ueda last week signaled that the December policy meeting will include a live discussion on whether to raise interest rates. In corporate news, Keisei Electric Railway surged over +13% and Keikyu climbed more than +11% following reports that a fund associated with activist investor Yoshiaki Murakami has built stakes in both railway operators. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -11.80% to 20.85.

The Japanese September Leading Index was at 109.1, weaker than expectations of 109.4.

Pre-Market U.S. Stock Movers

Arm Holdings rose over +1% in pre-market trading after UBS initiated coverage of the stock with a Buy rating and a $160 price target.

Robinhood Markets gained more than +3% in pre-market trading after Morgan Stanley upgraded the stock to Overweight from Equal Weight with a price target of $55.

Source: Barchart

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Stocks Set to Open Higher as Investors Cheer U.S. Treasury Pick, Fed Minutes and Inflation Data in Focus

Source: Barchart

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