Bitcoin Falls 5% in 24 Hours as Crypto Market Turns Red; Here’s why
The relative calm surrounding Bitcoin (BTC) was broken and selling pressure was applied early on Tuesday, November 8, as FTT, the ticker symbol of cryptocurrency exchange FTX, plunged to a 21-month low amid persistent concerns over the financial health of the Alameda trading company.
Bitcoin’s price has once again fallen below the psychologically significant $20,000 mark. Currently, the flagship cryptocurrency is trading at $19,751, down 4.78% in the last 24 hours and down 4.05% in the last seven days, according to data obtained by Finbold from CoinMarketCap.
As it stands, Bitcoin now has a total market capitalization of $378.5 billion.
Bitcoin Technical Analysis
Bitcoin’s immediate support is around $19,200 and a break of this level could expose BTC to $18,700. This is the case when looking at the bearish side of the market.
A downtrend is supported by both leading and trailing indicators, such as the Relative Strength Index (RSI), the MACD moving average, and the 50-day moving average. If Bitcoin fails to reverse its downtrend at $18,700, a break below that level could open the door for more selling pressure down to $18,000.
On the other hand, Bitcoin’s immediate resistance level is around $20,000, and a break above this level could expose BTC to $20,300-$20,400, which had held as before as crucial support for the past month.
Crypto trading specialist Michaël van de Poppe noted on November 7:
“We are looking at a few levels of support that I would prefer to see [BTC] maintain. It’s looking at the $20,500 and $20,300 levels, and actually those are the regions I would look at for potential long positions.”
FTX uncertainty puts the market on edge
The announcement by Binance CEO Changpeng Zhao that the firm has made the decision to sell all of its FTT tokens sent shockwaves through the market.
Currently, the global crypto market cap is $984.37 billion, down 4.36% in the last day. In total, the big losing market bought $55 billion in 24 hours, as the total market capitalization fell from as high as $1.039 trillion to below the $1 trillion threshold.
This occurred as allegations circulated that Alameda Research, a company with strong ties to FTX, was experiencing financial difficulties. Despite this, Bankman-Fried said the company’s assets were “fine” in an attempt to quell false rumours.
FTT had an unexpected drop of 14% in a single hour. Over the past day, the value of the exchange token has dropped a sensational 19.5% at the time of publication.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
