At the beginning of November, the global crypto market in general had looked like it had taken a bullish turn. However, the FTX fiasco has brought things back to square one or even worse. The moves made by both Binance and FTX have made most crypto assets incredibly volatile right now.
The liquidations involving the Solana platform have only served to increase the selling pressure already forming. As of the third week of November, Bitcoin (BTC) is trading around the $16,300 mark, having touched the yearly lowest lows of about $15,700 in the past week. Ethereum and other altcoins have been making similar downward journeys, and the general market sentiment isn’t exactly hopeful at the moment, either.
Notably, in the previous week, BTC had fallen about 22% as witnessed on Sunday, November 13. Still recovering from the fresh wound of the FTX scandal, the crypto markets in general continue to look for a new bottom that will hold.
<source: tradingview, binance>
While the RSI for BTC/USD remains neutral for now (35.88), BTC is currently trading below both its 20-day EMA ($18,600) and 50–day SMA ($19,400). The $16,200 levels are acting as the immediate support for BTC, past which the lows from last week of around $15,700 may come into play as a firm support point in the immediate future. For now, BTC faces a solid resistance around the $17,600 levels. Clearing the $18,000 mark might signify a rally for BTC, which could again take the crypto to the monthly highs of around $21,400.
As Sean Farrell, the head of digital-asset strategy at FundStrat opined: "In the past six months, we have witnessed the unraveling of a web of leverage that entangled the crypto space. It started with LUNA/UST, seemingly resolved in the 3AC unwind, only to find that SBF now appears to have been insolvent as well.... We think it is appropriate to wait for lower lows as there is good reason to think that there will be other casualties, which could lead to forced selling or, at the very least, bad headline risk."
In relevant news, the analysts at Glassnode reported that Bitcoin exchange outflows have hit the surprising level of 106,000 BTC per month. This may seem like bad news to the not-so-experienced, but it actually symbolizes that BTC is being hodled for the long-term as investors move their funds to cold storages. Of course, this time it also signifies that people are losing faith in the security systems of centralized exchanges.
While researchers and traders are keeping their expectation subdued for a while and waiting for the crypto market to make a significant move in either direction, on a positive note, Subway is experimenting upon Bitcoin’s Lightning Network, which is a layer-2 Bitcoin payments solution. They seem to be getting upbeat responses in Berlin, Germany in particular.
As a matter of fact, over the course of the last few months, Berlin’s Subway has noted BTC transactions numbering over as much as 120.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.