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Source: Сointеlеgrаph

Bitcoin (BTC) lingered around $16,500 at the November 23 Wall Street open as US markets waited for Thanksgiving signals.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View

Shades of Gray and GBTC Still Dominate Crypto Sentiment

Data from Markets Pro and TradingView showed that BTC/USD is avoiding volatility after two-year lows the day before.

The pair left analysts guessing a day before the Thanksgiving holiday shutdown of the US markets, with crypto commentators still focused on the Digital Currency Group (DCG).

Potential liquidity issues at DCG-owned Genesis Trading continued to worry those already anticipating further losses in bitcoin and altcoins.

As reported, concerns have already circulated about the future of the Grayscale Bitcoin Trust (GBTC), Bitcoin’s largest institutional investment vehicle with over $10 billion in assets under management.

On November 22, former Grayscale CEO Barry Silbert released a letter to DCG shareholders that went viral on social media in an effort to boost morale.

“Not sure how to interpret the mixed reports around DGC, GENESIS, Grayscale, but Barry Silbert’s email yesterday gave the crypto market some hope,” Material Indicators wrote in a Twitter thread that day.

He added that GBTC announcements, however, could come after business hours, which could be a potential catalyst for volatility.

The attached chart of buying and selling pressure on the world’s largest exchange, Binance, showed strong resistance at just below $17,000.

In terms of buying, at the time of writing, only $15,000 represented any kind of credible support, with the bulk being $14,000.

BTC/USD order book data (Binance). Source: Essential Indicators/Twitter.

“I’ve never seen such a bad mood”

Meanwhile, commenting on the general state of the crypto market following the FTX debacle, popular commentator William Clemente said that sentiment should not be confused with the underlying strength of Bitcoin.

Related: Bitcoin May Need $1 Billion More Losses Before BTC Price Bottoms Out

“I have never seen such a bad mood,” he admitted.

“Fears about every centralized company in the industry, people giving up, losing hope, depression. Meanwhile, the fundamentals of Bitcoin have not changed at all. Posting this to review when BTC hits new highs in a few years.”

According to the classic Crypto Fear & Greed Index criterion, however, there was room for a fall: the 22/100 reading is still more than double that which traditionally accompanies bear market bottoms.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

“The word ‘dead’ quickly spread across crypto platforms in November,” research firm Santiment added on Nov. 22.

“As one of the more bearish words, this is a sign that traders are giving up on the recovery of the markets. Ironically, this capitulation historically occurs when markets recover.”

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of .

Source: Сointеlеgrаph

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