The cryptocurrency market continues to shed blood, with the majority of cryptocurrencies trading in the red on November 9 due to panic selling yesterday, fueled by rumors of FTX’s insolvency. While Bitcoin fell to nearly $18,000, Ethereum was on the verge of a significant loss below $1,300.
The global crypto market cap is $913.58 billion, over 11% from the previous day. DeFi’s total volume is currently $9.99 billion, accounting for more than 4.5% of the overall crypto market 24-hour volume. The overall volume of all stablecoins is now $199 billion, accounting for 93% of the total 24-hour volume of the crypto market.
Binance Triggers Liquidity Crisis, then Buys FTX
Sam Bankman-Fried, who established the cryptocurrency exchange FTX into a global powerhouse, has tweeted that Binance has agreed to buy the company. Following news of an alleged impending Binance buyout, the native token of Sam Bankman-cryptocurrency Fried’s exchange FTT rose initially, but investors remained uncertain, and FUD triggered a dramatic sell-off, causing FTT to fall from $22 to $4, a drop of more than 80%.
Changpeng Zhao, the founder of Binance, also took to Twitter to discuss the transaction, writing, “This afternoon, FTX asked for our support.” We are experiencing a severe shortage of cash. To ensure the safety of our users, we have signed a non-binding LOI with the intention of acquiring FTX.com in its entirety and relieving the financial strain.
Within the next few days, we’ll be performing a thorough DD. Since falling sharply on Saturday night, when Binance CEO Changpeng Zhao said the exchange would dump hundreds of millions of dollars worth of FTX’s native token FTT due to allegations of Alameda Research’s insolvency, Bitcoin and Ether have been steadily regaining their losses.
The CEO of FTX, Sam Bankman-Fried, discusses how things have “full circle” with Binance being the exchange’s first and last investor. The terms of the agreement are being kept private.
Since Binance has the option to terminate the agreement at any time, FTT investors remain in FUD (fear, uncertainty, and doubt), maintaining the overall trading bias bearish.
Check out this link if you want to read more about the FTX backstory.
Top Altcoin Gainers and Losers
There have been very few coin gains in the last 24 hours, with BinaryX and PAX Gold being two of the top 100. BinaryX price gained over 2% to trade at $145, and PAX Gold has risen by more than 2% to $1,700.
FTX Token (FTT) has lost more than 71% of its value in the last 24 hours due to FTX insolvency rumors. Aptos (APT) is down 21% to $4.8, while Chiliz (CHZ) is down 16% to $0.20.
The current Bitcoin price is $18,395 and the 24-hour trading volume is $115 billion. Bitcoin lost over 6% during the Asian session and over 10% in the last seven days. CoinMarketCap currently ranks it first, with a live market cap of $351 billion, down from $378 billion yesterday.
On the technical front, BTC/USD has breached all previous support levels mentioned in the Bitcoin price prediction for the European session. Bitcoin is currently gaining immediate support at $18,170, with the next support level remaining at 17,150.
The closing of bearish engulfing indicates that the selling trend is likely to continue, so we should keep an eye on $18,170. Closing below this level may result in additional selling.
Leading and lagging indicators like RSI, MACD, and 50-day moving averages are indicating a bearish trend. Bitcoin may encounter immediate resistance at $19,000 or $19,895.
On Wednesday, the second most valuable cryptocurrency, Ethereum fell roughly 12% in the previous 24 hours and over 17% in the last seven days to trade at $1,303. On CoinMarketCap, it is now ranked second, with a live market capitalization of $159 billion, down from $178 billion yesterday.
On the daily chart, Ethereum has formed a symmetrical triangle pattern, which is supporting ETH near the $1,227 level. The ETH/USD pair has broken below the 50-day moving average, which was previously extended as support at 1,385 and is now acting as resistance.
The RSI and MACD are also in the selling zone, and the formation of a bearish engulfing candle indicates the possibility of further selling.
On the downside, a break of the $1,227 level may expose the ETH price to the $1,125 or $1,000 mark.
FTX Token is Down 84%
The current price of FTX Token is $4.54, with a 24-hour trading volume of $3 billion. FTT has fallen by over 71% in the previous 24 hours and over 84% in the last seven days. With a live market cap of $607 million, CoinMarketCap now ranks #30.
On the technical front, the FTT/USD has broken through a descending triangle pattern, indicating a possible continuation of the bearish trend. On the downside, FTT may find support near $3 or $1, as the breakout of the descending triangle pattern may have a negative impact on FTT investors’ sentiment.
FTT’s immediate resistance remains at $6 or $10 on the upside.
Compiled by Coinbold