Yesterday, Changpeng Zhao resigned as CEO of Binance and the price of Bitcoin took advantage of this to fall below $37,000. In fact, the price of BTC shows a drop of more than 2% in 24 hours:
Bitcoin price shows an impressive rise in 2023, which surpasses the performance experienced during the 2021 bull run. However, sellers managed to push the price below $37,000.
In one week, the course is increasing by 2.5%. Furthermore, in a month, BTC still shows an increase of almost 20%. At the same time, the BTC/ETH pair fell more than 1% in 24 hours but is still up 2% in a week.
Cryptocurrencies Experience Sharp Falls After Changpeng Zhao’s Announcement
The announcement by the now former CEO of Binance sent shock waves to the cryptocurrency market as a whole, whose global capitalization has plummeted almost 4% to stand at $1.41 trillion.
Unsurprisingly, the most affected cryptocurrency was BNB, Binance’s native token. The price of BNB has plummeted 10% throughout the day, despite having registered a five-month high in the early hours.
Bitcoin, the largest cryptocurrency by market capitalization, has accumulated a drop of 4.1% in the last 24 hours to trade at $35,968, after starting the day above $37,400.
Ethereum is currently trading at $1,944 after falling 3.9%, while the rest of the top 10 cryptocurrencies are also experiencing significant drops: XRP (-5%), SOL (-7.4%), ADA (-5.1%) and DOGE (- 7%).
While cryptocurrency prices initially fell on the news, both Bitcoin and Binance Coin have recovered from their lows. Some market observers believe that CZ’s demise paves the way for regulatory approval of direct bitcoin investment vehicles such as ETFs.
Despite the Fall of Bitcoin, Traders Continue to Accumulate
For several months, the BTC price has been strong. In 2023, it shows a 120% increase, a performance that recalls the different bull runs. The Trend Accumulation Score by Cohort indicator allows us to account for the behavior of different categories ranging from the smallest wallets to the largest wallets (whales).
Since the beginning of the year the different cohorts have alternated between accumulation (blue) and distribution (red) and the indicator shows a significant accumulation in October. In fact, all the categories are accumulating according to data from the Glassnode site. As Bitcoin price falls below $37,000, traders are accumulating and hoping for a return above $40,000.
Recapture $37,000 or Fall Towards $35,000 Support for Bitcoin Price
After this drop, the buyers’ objective is to retake the resistance zone located at $37,000. In this way, the course could mark a new record in 2023 and return to the resistance level at $38,500:
On the other hand, a rejection at the resistance level and institutional bias (EMA 9/EMA 18) could cause the price to return to the support level at $35,000. Specifically, the course is in the process of lateralizing. As long as the $35,000 holds, buyers have the advantage in 4H. The RSI failed to regain bullish momentum closing above 67. If the RSI closes below 25 then bearish dynamics would continue. In this case, the sellers would continue to benefit from the momentum.
The price of Bitcoin fell following the announcement about Changpeng Zhao’s resignation as CEO of Binance. $37,000 will need to be reclaimed as support in an attempt to make a new high in 2023. Since October, traders have been accumulating a lot of BTC. The trend does not seem to weaken. Will BTC continue its impressive momentum since the beginning of the year?
By Audy Castaneda
