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(Kitco News) – Cryptos closed out the work week strong as Bitcoin (BTC) bulls managed to fend off an attempt by bears to push the top crypto into a deeper correction, while the altcoin market continued to trend higher as traders entered the market in full force.
Stocks also climbed higher to finish the week on a positive note despite the latest round of economic data showing that the American consumer is less confident about the state of the U.S. economy and expects inflation to continue to rise.
At the closing bell, the S&P, Dow, and Nasdaq were all in the green, up 1.56%, 1.16%, and 2.05%, respectively. The benchmark 10-year yield moved down to trade near 4.63%, which also helped put a bid under risk assets.
Data provided by TradingView shows that after a brief dip to $36,430 in the early hours on Friday, Bitcoin’s price climbed its way to a daily high of $37,485 near midday, and has since pulled back to support at $37,300.
BTC/USD Chart by TradingView
“November Bitcoin futures prices [were] higher in early U.S. trading Friday, after hitting a contract high Thursday,” said Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“The BTC bulls have the solid overall near-term technical advantage,” Wyckoff said. “A price uptrend on the daily bar chart is firmly in place. The trend is indeed the bull’s friend. Look for more price upside in the near term.”
While many analysts also see a possible extension of the uptrend, Crypto trader Ali Martinez has warned that Bitcoin will likely soon undergo a short-lived market correction.
“Bitcoin is nearing $40,000, and the crowd couldn’t be more excited. But one important rule in trading is that you cannot follow the herd,” Martinez wrote on X (formerly Twitter). “Although I’m not touching my spot BTC position until some time in 2025, I’m inclined to enter a short in the futures market.”
As for why he sees a correction imminent, Martinez said, “The TD Sequential presents a sell signal on the weekly chart as BTC approaches an important area of resistance between $38,500 and $42,000.”
BTC/USD 1-week chart. Source: X
“I believe this resistance wall could trigger a correction toward $33,000, where I plan to buy the dip before the uptrend resumes,” he said. “Invalidation would be a weekly candlestick close above $42,500.”
MN Trading founder Michaël van de Poppe said that if a correction does occur, “$31,000 is crucial and needs to hold in order to prevent further downward momentum (if any). In that aspect, the $31,000 area is comparable to what the markets have been eyeing in the 2017-2021 cycle at $6,000.”
BTC/USD 1-day chart. Source: MN Trading
That being said, Poppe thinks that BTC would “Most likely dip towards $32,000-33,000,” which is “where [long] bids should be placed as strong sentiment usually doesn’t give the obvious retests.”
In the event of a push higher, Poppe identified “a clear monthly and weekly resistance [zone] between $38,000-40,000.”
“This level will break at some point, but currently, Bitcoin’s price has been providing the first test at this level,” he said. “These first tests don’t break [through resistance] at first sight, hence the correction the markets [saw] yesterday. Overall, the outlook is positive.”
He added that there is the potential for a new range to form where “Bitcoin’s price goes sideways, and that’s a strong indication of further upward momentum on altcoins.”
BTC/USD 1-week chart. Source: MN Trading
“During late November and December, most likely we’ll see more hype into the markets as the odds of a potential approval of the spot Bitcoin ETF is going to provide more momentum towards the markets, hence why the expectations are that we are likely going to see $45,000-50,000,” Poppe concluded.
Altseason kicks off with triple-digit gains for FTT
Altcoin prices surged higher, with only a dozen tokens in the top 200 trading in the red on Friday.
Daily cryptocurrency market performance. Source: Coin360
FTT, the token for the FTX cryptocurrency exchange, saw its price catapult 146% higher on news that the SEC may allow it to reopen its trading desk. JasmyCoin (JASMY) recorded an increase of 32.6%, and Celestia (TIA) gained 30.2%.
The overall cryptocurrency market cap now stands at $1.41 trillion, and Bitcoin’s dominance rate is 51.4%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
