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

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

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

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

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