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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Market update: Bitcoin steady as Coinbase merges as winner from Binance saga

Bitcoin stays below $38k in rangebound trade; crypto remains calm despite Binance's record fine and a new CEO. Surprisingly, Coinbase advances, positioning itself as an unlikely winner in the market.

Source: Bloomberg

Bitcoin rallied sharply yesterday after threatening to break support at the 35,500 level. Yesterday’s aggressive rebound came within a whisker of the 38,000 mark, before struggling to break higher today. It seems the current range may be here to stay a while longer.

Binance fine, as its CEO CZ steps down and Coinbase emerge as winners

It has been a dynamic week in the cryptocurrency realm, with significant developments at Binance, the world's largest crypto exchange, taking center stage. The imminent departure of Changpeng Zhao, known as CZ, from the CEO position in favor of Richard Teng made headlines. In a statement on the X platform, Zhao emphasized that this transition is in the best interest of himself, Binance, and the broader crypto community. Notably, he concluded by affirming that the arrangements with US regulators do not involve allegations of misappropriation of user funds or market manipulation.

In addition to appointing a new CEO, Binance faces a $4.3 billion fine, prompting concerns about the company's well-being. Incoming CEO Richard Teng swiftly allayed worries, highlighting robust revenues and profits. Teng further emphasized the company's strong fundamentals, boasting a debt-free capital structure and modest expenses.

An intriguing exchange ensued on X platform between Binance's CEO and Coinbase director Conor Grogan. Grogan suggested, based on the proof of reserves document shared by Teng, that Binance might need to sell crypto assets. Binance refuted this claim, asserting that the reserves are sufficient for the repayment program.

Binance incoming CEO Richard Teng and Coinbase director, Conor Grogan's exchange on X

Source: X

Coinbase triumphs: leading 2023 with ETF optimism, outperforming competitors, eyes pivotal 2024

Observing Coinbase, a compelling narrative unfolds. Despite recent challenges, the US exchange emerges as the standout winner in 2023 amidst competitor setbacks. The announcement of the Spot Bitcoin ETF application, with Coinbase as the storage partner, positions the platform as a beneficiary. Growing speculation around ETF approval, combined with a recent recovery in US equities, propels Coinbase into a successful streak.

Further validating this belief is the recent metrics from both Coinbase and Binance which showed a sharp uptick in Bitcoin Holdings for the former, while the latter’s Bitcoin Holdings continues to slide. A Bitcoin ETF approval might add a further layer of credibility to Coinbase and 2024 could be a huge year for the exchange and equally as important for Binance.

A brief look at the Coinbase chart below and you can see that share price has been on a steady rise since bottoming out at around the $30 mark in January, before a double bottom pattern in June helped the share price return to July highs around the 109.00 handle. Given the promising fundamentals for Coinbase and the potential ETF approval, it would take a wise man to bet against further gains in the coming months.

Coinbase daily chart

Source: TradingView

Bitcoin technical outlook and final thoughts

From a technical standpoint, BTCUSD is interesting as it hovers just below the $38k mark. Nothing much has changed from a technical standpoint. The 38,000 mark remains a stumbling block to further upside and I fear the longer we stall at this level, the greater the likelihood for a selloff becomes.

Resistance levels:

  • 38,000
  • 40,000
  • 42,500

Support levels:

  • 36,200
  • 35,500-35,200
  • 34,177

BTCUSD daily chart

Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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