Bitcoin Finds Support, Helped by Elon Musk Comments

  • BTCUSD
    (${instrument.percentChange}%)

BTC/USD Analysis

A new rout hit the crypto world this month, as crypto exchange FTX faced "liquidity crunches" as per the former CEO [1], after the plunge of its FTT token. Rival Binance eventually pulled out of a tentative deal to acquire the non-US operation of FTX [2] and the troubled firm eventually filed for bankruptcy on Friday.[3]

This sparked a sell-off in various digital coins, with BTC/USD having slumped to two-year lows on Thursday, registering its worst week since June It is now vulnerable to fresh lows and the 15,000 handle, but new catalyst may be needed for a bigger decline towards and below 13,207.

BTC/USD gapped lower today, but avoided fresh lows and covers the losses with the help of Elon Musk's comments, who tweeted "BTC will make it, but might be a long winter" [4]. This can lead to further rebound towards the EMA200 (at around 14,470), but daily closes above it, which could pause the downside momentum, may prove elusive for now.

The area above the EMA200 looks unfriendly from a technical prospective, while sustained recovery seems difficulty as long as crypto woes persist. In any case, caution is needed as markets monitor the news around FTX and volatility remains elevated.

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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 14 Nov 2022 https://twitter.com/SBF_FTX/status/1590012126701441025

2

Retrieved 14 Nov 2022 https://twitter.com/binance/status/1590449161069268992

3

Retrieved 14 Nov 2022 https://twitter.com/FTX_Official/status/1591071832823959552

4

Retrieved 25 Nov 2022 https://twitter.com/elonmusk/status/1592043719645356034

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