After a period of relative tranquility around Bitcoin, selling pressure began early on Tuesday, November 8, when FTT, the native token of cryptocurrency exchange FTX, plummeted to 21-month lows amid persistent concerns over the financial health of trading company Alameda.
Bitcoin's price has once again fallen below the psychologically significant threshold of $20,000. According to data obtained from CoinMarketCap, the flagship cryptocurrency is currently trading at $19,751, down 4.78% over the last 24 hours and down 4.05% over the last seven days.
At present, Bitcoin has a total market capitalization of $378.5 billion.
1-day bitcoin chart. Source: CoinMarketCap
Technical analysis of Bitcoin
The immediate support for Bitcoin lies around $19,200, and a breach of this level might expose BTC to a price of $18,700. There is no doubt that this is the case when looking at the bearish side of the market.
Leading and trailing indicators, such as the relative strength index (RSI), the moving average of the MACD, and the 50-day moving average, are indicative of a downward trend. A break below $18,700 could open the door to more selling pressure downwards to $18,000 if Bitcoin cannot reverse its downward trend.
Bitcoin technical analysis 1-day chart. Source: TradingView
Meanwhile, Bitcoin's immediate resistance level is around $20,000, and a break above this level might expose BTC to $20,300-$20,400, which had previously served as crucial support.
Michael van de Poppe, an expert in cryptocurrency trading, noted on November 7 that:
“We are looking at a few levels of support that I preferably want to see [BTC] sustain. It is looking at the level at $20,500 and $20,300, and actually, those are the regions that I’ll be looking at for potential long positions.”
Market uncertainty over the FTX
Binance CEO Changpeng Zhao's announcement that the firm would sell all of its FTT tokens sent shockwaves throughout the market.
As of today, the global crypto market cap is $984.37 billion, a decrease of 4.36% over the previous day. Market capitalization fell from $1.039 trillion to below $1 trillion in 24 hours, as the broader market lost $55 billion.
1-day global crypto market cap. Source: CoinMarketCap
A number of allegations were circulating that Alameda Research, a company with strong ties to FTX, was experiencing financial difficulties. Despite this, Bankman-Fried stated that the company's assets were "fine" in an effort to dispel any false rumors.
In a single hour, the FTT dropped by 14%. During the last day, the value of the exchange token plummeted a startling 19.5%.