new bottom – The Binance Drama – FTX has taken a turn that is partly reshaping the crypto landscape. The sector may be witnessing a historic event, and the price of Bitcoin (BTC) reflects the major movements taking place there currently.
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Bitcoin price: $20,000 before the plunge
The relief only lasted a few minutes. Bitcoin made a foray above $20,000, as the FTX Token took a dip above $20, when Binance CEO Changpeng Zhao announced that his company and FTX have signed a “non-binding” letter of intent to “fully acquire » Sam Bankman-Fried’s crypto exchange. Binance reportedly intends to help the latter “to cover the shortage of liquidity”.
This rebound was followed by a long fall, which shows that concern still reigns over the markets, despite the start of an agreement between Changpeng Zhao and Sam Bankman-Fried, in the hope of ending the current crisis.
After a new bottom, the bulls respond present
Bitcoin has dropped to $16,950 on Bitfinex today, November 8, 2022, thus touching a low for the year, below the previous low of last June at around $17,611.
Cryptocurrency is trading to $18,264 at the time of writing, and is currently recording a daily loss of 12.33%. The FTX Token is trading at $4.61 on Binance.
To highlight the magnitude of today’s tremors, the Material Indicators platform has noted that the technical and psychological supports have yielded. The moving averages of 100, 50, 21 days, not to mention the peak of 2017, have been lost in a single daily candlestick.
Referring to the recent swings in Bitcoin price, the area around $18,210 could now act as support on a daily basis.
Given the current context, the Whalemap team reminded that, based on the realized price of portfolios holding 10 to 100 BTC, the bottom of this cycle could be at $12,480.
The collaboration between Binance and FTX seems to be gradually coming to fruition, but the declines in the markets show that investors may need further positive developments, communicated by Changpeng Zhao and Sam Bankman-Fried, to be sufficiently reassured.
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