Bitcoin Price and Ethereum Prediction – FTX Down 35% amid Insolvency Rumors
The Asian session has started with a crypto market massacre, with all of the main cryptocurrencies on a strong negative run and the global crypto market cap plummeting below $1 trillion amid FTX insolvency fears. Bitcoin price fell sharply and broke through an upward trendline to trade at $19,600. Similarly, Ethereum fell 7.5% to $1,470.
Billionaire Sam Bankman-FTX Fried’s cryptocurrency exchange was the subject of increasing rumors throughout the night, but the company’s CEO tweeted first thing Monday morning: “FTX is fine. Assets are fine.”
Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.— CZ 🔶 Binance (@cz_binance) November 6, 2022
We covered a story earlier today that Alameda Research, a subsidiary of FTX, carried a large amount of its native exchange token, FTT, on its balance sheet. A public spat ensued between Alameda CEO Caroline Ellison and Binance CEO Changpeng Zhao, who also owns a substantial amount of FTT tokens.
The CEO of FTX says that speculations about the company’s financial health are unfounded.
After rival crypto exchange Binance announced it would sell its holdings of FTX’s native token on Monday, FTX founder and billionaire Sam Bankman-Fried took to Twitter to reassure crypto investors.
Sunday, Binance CEO Changpeng Zhao tweeted that “due to recent revelations that have come to light,” the exchange would be selling its FTX token holdings.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4— CZ 🔶 Binance (@cz_binance) November 6, 2022
But Zhao did not elaborate on which disclosures he was referring to or how many tokens Binance actually had.
In response, FTX’s Bankman-Fried encountered with series of tweets, saying:
“A competitor is trying to go after us with false rumors.”
Check out this link if you want to read more about the FTX backstory.
Top Altcoin Gainers and Losers
In the last 24 hours, the top performers were Toncoin (TON), VeChain (VET), and Chainlink (LINK). Overall, the bullish bias is a bit weaker as the market is exhibiting risk-off sentiment. Toncoin has lost over 4% to trade at $1.66, and Polygon has risen by more than 2% to $0.026. At the same time, the price of LINK has increased by about 1% to $8.35.
In the last 24 hours, FTX Token has been a major victim of FTX insolvency rumors, losing more than 27% to $16. We’ll go over it in greater depth in the section below. BitDao (BIT) is down 17% to $0.3400, while Solana (SOL) is down 17% to $26.75.
The current Bitcoin price is $19,600 and the 24-hour trading volume is $60 billion. Bitcoin lost over 6% during the Asian session. CoinMarketCap currently ranks it first, with a live market cap of $378 billion, down from $438 billion yesterday.
Bitcoin has broken through an upward channel at $20,400 and triple bottom support at $20,000, shifting Bitcoin’s technical outlook to the bearish side. Bitcoin has also formed a “three black crows” candlestick pattern on the 4-hour timeframe, indicating a strong bearish bias among investors.
On the downside, Bitcoin’s immediate support is at $19,230, and a break of this level could expose BTC to $18,650. Leading and lagging indicators such as the RSI, MACD, and 50-day moving averages all support a downward trend.
If BTC fails to halt the downtrend at $18,650, a break below will allow for further selling until $18,000 and $17,650.
On the higher side, Bitcoin’s immediate resistance remains at $20,000, and a break above this level could expose BTC to $20,635. Bearish bias persists today.
On Tuesday, the second most valuable cryptocurrency, Ethereum fell roughly 9% in the previous 24 hours to trade at $1,446. On CoinMarketCap, it is now ranked second, with a live market capitalization of $178 billion, down from $193 billion yesterday.
Ethereum has formed a bearish engulfing and three black crows candlestick pattern on the 4-hour chart, indicating a strong selling bias among investors. Ethereum has now broken below an upward trendline at $1,460. With the breach of the upward trendline, Ethereum gains access to the downside until the $1,380 support zone.
At the same time, the RSI and MACD are indicating a strong bearish trend; however, both indicators have entered the oversold zone, indicating that sellers may be exhausted soon, opening the door for bulls to buy.
So keep an eye on $1,460 because closing 4-hour candles above this level has the potential to reverse the downtrend and help us in capturing a bullish correction. On the downside, $1,380 may be a good level for bulls.
FTX Down 35% amid Insolvency Rumors
The current price of FTX Token is $16, with a 24-hour trading volume of $1.1 billion. FTT has fallen by over 28% in the previous 24 hours and over 35% in the last seven days. With a live market cap of $2 billion, CoinMarketCap now ranks #30.
On the technical front, the FTT/USD has broken through a descending triangle pattern, indicating the possibility of a bearish trend continuation.
FTT may find next support near $13.85 or $9.50 on the downside, as the breakout of the descending triangle pattern could negatively impact FTT investors’ sentiment.
FTT’s immediate resistance remains at $19 or $22 on the upside.
New Crypto Presale With Huge Potential
Dash 2 Trade (D2T)
Dash 2 Trade is an Ethereum-based trading intelligence platform that provides real-time analytics and social data to traders of all skill levels, allowing them to make more informed decisions. It started its token sale two weeks ago and has now raised over $5.4 million while also confirming its first CEX listing on LBank Exchange.
1 D2T = 0.0513 USDT at the moment, but this will soon rise to $0.0533 in the next stage of the sale and $0.0662 in the final stage.