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

1

Retrieved 09 Nov 2022 https://twitter.com/cz_binance/status/1589283421704290306

2

Retrieved 26 Nov 2022 https://twitter.com/SBF_FTX/status/1590012124864348160

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.

Risk Warning: Our service includes products that are traded on margin and carry a risk of losses in excess of your deposited funds. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}