A crypto market bloodbath has begun with the Asian session, with all of the major cryptocurrencies on a strong negative run and the total market value of all cryptocurrencies throughout the world falling below $1 trillion due to concerns over FTX’s ability to continue operations. The price of bitcoin dropped significantly and broke through an upward trendline, trading around $19,600 at the time of writing. In a similar fashion, the price of Ethereum dropped 7.5% to $1,470.
The cryptocurrency exchange owned by billionaire Sam Bankman-FTX Fried was the subject of escalating speculations during the course of the night; nevertheless, the CEO of the business tweeted first thing Monday am that “FTX is fine. Assets are fine.”
Earlier on in the day, we reported on a news that said that Alameda Research, which is a subsidiary of FTX, held a significant quantity of its native exchange token, FTT, on its financial sheet. A public argument broke out between the chief executive officer of Alameda, Caroline Ellison, and the chief executive officer of Binance, Changpeng Zhao, who also holds a significant number of FTT tokens.
The CEO of FTX has said that rumors about the firm’s financial stability are baseless.
Sam Bankman-Fried, the creator of FTX and a millionaire in his own right, went to Twitter on Monday to reassure crypto investors after an announcement made by rival cryptocurrency exchange Binance that it will liquidate its shares of FTX’s native coin.
On Sunday, the CEO of Binance, Changpeng Zhao, said on Twitter that the cryptocurrency exchange will be selling its holdings of FTX tokens “due to recent revelations that have come to light,”
However, Zhao did not provide any more information on the disclosures to which he was referring or the number of tokens that Binance truly had.
In reaction, FTX’s Bankman-Fried faced a barrage of tweets in which the following were said:
“A competitor is trying to go after us with false rumors.”
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.
Compiled by Coinbold