The ongoing cryptocurrency bear market deepened further with the collapse of the crypto exchange FTX and its affiliated companies. After failing to reach a deal to be acquired by Binance, FTX filed for Chapter 11 bankruptcy protection in the United States on November 11. Just after filing for Chapter 11 bankruptcy in the US, an admin in FTX’s Telegram channel announced that the exchange had been hacked and $477 million was suspected to be stolen.
This entire saga hurt the already fragile sentiment in the crypto space. That brought down the entire crypto market capitalization to under $800 billion on November 10, according to coinmarketcap. Several crypto hedge funds and market makers are likely to take a big hit with the collapse of FTX and this has increased fears of contagion. Amidst the gloom and doom, Elon Musk gave hope to crypto investors when he said in a tweet on November 14 that “Bitcoin will make it, but might be a long winter.”
Another positive sign was that digital asset investment products saw an inflow of $42 million in the week ending November 13, the largest inflow in 14 weeks, according to CoinShares Digital Asset Fund Flows Weekly Report. This suggests that select institutional investors may be buying the dips.
Bitcoin plunged and closed below the crucial support of $17,567.45 on November 9. This pulled the relative strength index (RSI) to oversold levels, indicating that a consolidation or relief rally was possible. Buyers attempted to push the price back above the breakdown level of $17,567.45 on November 10 but the bears held their ground.
The BTC/USD pair is currently stuck between $17,567.45 and $15,512. The first sign of strength will be a break above the resistance zone between $17,567.45 and the 20-day exponential moving average (EMA). If that happens, the pair could then challenge the psychological level at $20,000 and later $21,500.
On the other hand, if the price turns down from the overhead resistance zone, it will suggest that the sentiment remains negative and traders are selling on every minor rally. The pair could then again drop to the support at $15,512. If this level cracks, the selling could intensify further and the pair could drop to $12,000.
Lastly please check out the advancement’s happening in the cryptocurrency world.
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