Bitcoin Drops amidst Binance-FTX Drama
New Crypto Rout
Last week, Bitcoin had shown resilience to the Fed's latest jumbo rate hike and mr Powell's hawkish press conference, moving to the highest levels since mid-February last Friday. This did not last however, since fresh woes rippled through the crypto-world this week.
The CEO of crypto exchange Binance twitted that the firm would liquidate any remaining FTT holdings, a token by rival FTX, citing "recent revelations" [1]. This sparked a sell-off in the token and FTX faced what its CEO described as "liquidity crunch". Binance has come to a non-binding agreement to acquire FTX's non-US operations. [2]
This turmoil sent many digital coins lower, with FXCM's CryptoMajors Basket losing more than 20% on the week at the time of writing. Ending a period of relative stability, BTC/USD loses more than 15%, hitting the lowest levels in two years. Any technical approach is difficult at this stage, given the high volatility and the magnitude of the move.
The 13,207 support has now come in the spotlight, but fresh catalyst may be required for such drop. Any recovery will encounter the first strong resistance cluster in the broader 20,000-21,700 region. This includes the EMA200, the November high and the daily Ichimoku Cloud.
Nikos Tzabouras
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 08 Nov 2022 https://twitter.com/cz_binance/status/1589283421704290306 | |
| Retrieved 27 May 2023 https://twitter.com/SBF_FTX/status/1590012124864348160 |
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