#BTC (four-hour timeframe). The asset fell slightly short of the expected 0.382 Fibonacci retracement level ($20,117), the reversal of the price movement occurred at $20,240. The consolidation of the asset occurs within the bull-flag pattern of the technical analysis. By the moment of writing the review, bitcoin has closely approached the upper border of the formation, which also coincides with the volume level of $20,700, which increases the chances of the tool to rollback to the support block around $20,400.
Then I expect stronger buying of the asset and a repeated assault of $20,700. In the short term, a bitcoin upside exit from the Flag with a subsequent retest of its upper boundary is likely, which can be used to open a long position. The nearest target for the upward movement after the breakdown of the figure will be the price level of $21,600.
#ETH. Ether is still gathering strength under the resistance level at $1,600, with the nearest support level around $1,560. The asset increased its value by 0.45% in pairing with #BTC over the past 24 hours.
The Hong Kong authorities decided to legalize retail operations with cryptocurrencies, other digital assets and exchange-traded investment funds working with cryptocurrency. The government is preparing to repeal the current rule that allows only people with at least $1 million in wealth to trade in digital currencies.
At the same time, the Securities and Futures Commission (SFC) of Hong Kong for the first time presented the criteria for obtaining a license for exchange-traded investment funds working with cryptocurrency ETFs. For now, they will only be able to invest in #BTC and #ETH futures, but the list of available instruments will be expanded in the future.
Interestingly, Hong Kong’s decision to relax rules for retail trading and the launch of ETFs follows an earlier announcement of its intention to become an Asian financial and cryptocurrency center. At the same time, the metropolitan authorities plan not just to encourage trading in digital assets, but also to create a comfortable environment for blockchain startups to participate in the development of the administrative region’s economy. I think that such undertakings will contribute to the development of the entire cryptocurrency industry, and other regions will adopt Hong Kong’s experience.
The U.S. stock market ended Monday’s trading lower amid negative dynamics from the technology, commodities and utilities sectors. The attention of market participants is directed to the November meeting of the U.S. Federal Reserve System. After a projected increase in the prime rate to 3.75%-4%, there is a possibility that the U.S. Central Bank may slow the rate hike. At the close on the New York Stock Exchange, the Dow Jones was down 0.39%, the S&P 500 was down 0.75% and the NASDAQ Composite was down 1.03%.
In the last 24 hours, the total value of digital assets rose 1.4%, while the dominance of the major cryptocurrency declined 0.75%. Bitcoin’s share of the total cryptocurrency market capitalization reached 40.3% (according to Tradingview), in the case of its fixation under 40%, opens the way to reduce the dominance up to 37-38%, which will favorably affect altcoins.