- November 8, 2023
- Posted by: [email protected]
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Bitcoin, the leading digital currency, finds itself navigating a multifaceted landscape filled with challenges and endorsements as the cryptocurrency market continues to mature. With its current price at $34,901, Bitcoin has experienced a slight decline of 0.25% as of Tuesday.
One of the significant challenges on the regulatory front is faced by the US Securities and Exchange Commission (SEC). The SEC is struggling with recruiting cryptocurrency experts due to constraints that prevent its employees from owning digital assets. Meanwhile, the Bitcoin network is grappling with a substantial transaction backlog, resulting in an astonishing 4,000% surge in fees.
Amidst these dynamic developments, prominent investment figure Cathie Wood remains steadfast in her support for Bitcoin. She advocates for its advantages over traditional assets such as gold and cash, particularly in an environment that could be characterized by deflationary economic conditions.
These intertwined factors create a complex backdrop for Bitcoin’s short-term price trajectory as the cryptocurrency weathers a range of challenges and endorsements.
The SEC’s Office of Inspector General recently released a report outlining the agency’s difficulties in recruiting cryptocurrency experts. The report underscores the scarcity of qualified candidates, fierce competition from the private sector, and the reluctance of applicants to divest their cryptocurrency holdings due to SEC rules prohibiting such ownership. This recruitment challenge comes as the SEC intensifies its enforcement actions within the crypto space, pursuing cases against individuals, companies, and entities such as Justin Sun, Do Kwon, Gemini, Genesis, Binance, and Coinbase.
The SEC’s struggle to acquire industry expertise could potentially impact its ability to effectively regulate the cryptocurrency market, thus influencing Bitcoin’s price movements.
As of November 2023, Bitcoin is contending with a substantial surge in transaction backlogs and fees. Since September 15, following a period of reduced activity, the Bitcoin mempool has accumulated over 157,000 unconfirmed transactions. Fees for high-priority transactions have spiked to $3.38.
This congestion is primarily attributed to the resurgence of Ordinal inscriptions, which processed nearly 700,000 transactions on November 4, making it one of the busiest days in Bitcoin’s history. The subsequent influx of over 800,000 transactions within just two days exacerbated the mempool backlog and drove up transaction costs.
The market movement of Bitcoin is currently primarily lateral, with the price draping around the critical pivot point of $34,990, attracting the attention of day traders. The immediate obstacle for the price is situated at $35,360, a level that has witnessed significant trading activity recently. A successful breakthrough at this point could set the stage for further advances, potentially reaching resistance levels at around $36,051 and subsequently $37,018.
On the downside, the first level of support is positioned at $34,693. In the event of bearish momentum, additional support may come into play at $33,281 and $32,481.
The Relative Strength Index (RSI) stands at 57, reflecting a mildly optimistic sentiment and indicating a slight bullish bias without reaching overbought conditions. Additionally, the 50-Day Exponential Moving Average (EMA) is at $34,390, just below the current market price, hinting at a potential uptrend on the horizon.
In the short term, Bitcoin’s prospects revolve around the resilience of the $34,693 support level. Maintaining this support level may pave the way for Bitcoin to challenge the $35,360 resistance in the near future. Conversely, a breach of this support could signal a descent, underscoring the importance of setting stop-loss orders in these volatile market conditions. Bitcoin’s journey continues in a landscape where regulatory challenges and network dynamics are actively shaping its trajectory.
