Focus on Bitcoin (BTC) and Ethereum (ETH)

The tensions of the past few days also spilled over into the weekend, capping the second-worst weekly performance since the beginning of the year for Bitcoin and the third-worst for Ethereum.

The two major cryptocurrencies are cushioning their fall by around 20%, painting a dull technical picture with only a few weeks left until the end of the year.

2022 will be remembered as the worst year in history for project and company failures in cryptocurrency financing and investment.

With each passing day, more and more disturbing details emerge about the handling of deposits on FTX exchange by Sam Bankman Fried, aka SBFuntil a few days ago considered the wizard and visionary of the new crypto-finance.

A management that has so far caused losses of an estimated more than 30 billion dollars among small and large investors, but due to how it has been managed and implemented, it is not excluded that other exchanges may also use it.

After recovering August levels with a peak of 38 points reached on November 7, investor confidence is returning to the levels that characterized last summer’s performance in the 20-point range. Never until the last few years have Fear and Greed Index measured such a long-term trend in the “Fear” space, highlighting one of the most difficult periods in the sector.

In addition to the collapse of the original FTT token on the FTX exchange, which lost more than 90% in just 7 daysSolana (SOL) also did very poorly, halving its value from $31 or just over $14 in a week, losing more than 50%.

Bitcoin (BTC) Price Analysis

During the weekend, the price of Bitcoin (BTC) continues to hover dangerously close to $16k.

Tensions remain high on the major cryptocurrency as it retreats to two-year lows. Indeed, it had not been since the end of November 2020 that the price of BTC fell below $16k.

An initial estimate of chain data suggests that BTC liquidations are largely due to selling forced by margin calls of risky positions or repositioning of portfolios by medium and long-term investors.

Open interest by the number of BTC remaining open for overnight positions falls to the lowest level in August and with the counterpart to the lowest level in 6 months.

Reasons that advise increasing caution to risk levels while maintaining a management of any remaining open positions and not rushing to re-enter a market still exposed to possible falls.

The volatility index returned to the highest levels since June last year, indicating high nervousness and too much risk for inexperienced investors.

Ethereum (ETH) Price Analysis

Despite a larger drop for BTC by a few decimal percentiles, the price is on Ethereum (ETH) sinks under $1100 USD while they managed to stay above the low of last June, when the price of ETH fell to the $880 USD area, the lowest low since January 2021.

This should not lead to illusions of greater strength for the altcoin queen, which is still affected by possible downside speculation.

The return above USD 1,250 in these early hours of the new week will also need to be confirmed at daily close. This level is actually the last valid medium to long-term support protecting the psychological threshold of $1000.

USD 1250 coincides with the double high of late June and mid-July that foreshadowed the decline that saw the price of ETH reach summer highs in the USD 2030 area in mid-August.

It is necessary to monitor developments in the next few hours while maintaining strict management of any bullish positions with stop-losses within the lows between Wednesday 9th and Thursday 10th November, and in any case above USD 1,050.

Breach of this threshold, identified by professional traders when buying put options, can trigger selling due to repositioning of portfolios.