Bitcoin Bulls Shrug Off Binance Turbulence: Is $40,000 in Sight Now?
This week marked significant developments in the cryptocurrency industry, with the DOJ imposing a historic fine on Binance and the exchange's admission to serious accusations leading to the forced resignation of Changpeng Zhao. Despite the gravity of these events, Bitcoin's eventual response was quite subdued.
Surprisingly, the initial panic that ensued following these revelations dissipated within a short 24-hour period, and the market swiftly resumed its course. Notably, the market actively embraced recent developments indicating a potential shift in the balance of power within the cryptocurrency industry, with institutional investors lending their support.
Industry experts, commenting on Binance's reconciliation with US authorities, have asserted that it is in the best interest of the market. Moreover, the increased rhetoric around transparency in the sector is believed to strengthen the likelihood of approval for the spot Bitcoin ETF, a development that has significantly influenced the market in recent months.
Bitcoin's price chart this week also shows that the Binance incident was quickly priced in. Bitcoin, which fell 5% on Tuesday amid panic selling on the news of the settlement, recovered its losses the next day and continued to maintain its positive outlook.
Bitcoin has remained in a sideways pattern in the $35,500 — 37,500 range within the ascending channel in November. At this point, the cryptocurrency, which has exceeded the Fibonacci expansion area according to the last bearish momentum, has turned the Fib 1,618 value into support. In November, an intermediate resistance was formed in the narrow band of $37,500 — 38,000. Just above this resistance, a second resistance line at $38,500 — 38,600 may form in the
Read more on investing.com
