The relative tranquility around Bitcoin (BTC) was broken, and selling pressure applied early on Tuesday, November 8, when FTT, the native token of cryptocurrency exchange FTX, plummeted to 21-month lows on persistent worries over the financial health of trading firm Alameda.
Bitcoin’s price has again fallen below the psychologically significant $20,000 threshold. Currently, the flagship cryptocurrency is trading at $19,751, 4.78% in the last 24 hours and down 4.05% across the last seven days, according to data retrieved by Finbold from CoinMarketCap.
As things stand, Bitcoin now has a total market capitalization of $378.5 billion.
1-day bitcoin chart. Source: CoinMarketCap
Bitcoin technical analysis
Bitcoin’s immediate support is located around $19,200, and a breach of this level might expose BTC to $18,700. This is the case when looking at the bearish side of the market.
A downward trend is supported by both leading and trailing indicators, such as the relative strength index (RSI), the moving average of the MACD, and the 50-day moving average. If Bitcoin is unable to reverse its downward trend at $18,700, a break below that level could open the door for more selling pressure down to $18,000.
Bitcoin technical analysis 1-day chart. Source: TradingView
On the other hand, Bitcoin’s immediate resistance level stands around $20,000, and a break above this level might expose BTC to $20,300-$20,400, which had held as previously as crucial support over the last month.
Crypto trading specialist, Michaël van de Poppe noted on November 7:
“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.”
FTX uncertainty puts the market on edge
The announcement made by Binance CEO Changpeng Zhao that the firm has made the decision to sell all of its FTT tokens sent shock waves across the market.
Currently, the global crypto market cap is $984.37 billion, a 4.36% decrease over the last day. In total the broader market lost bought $55 billion in 24 hours, as the total market worth fell from as high as $1.039 trillion to below the $1 trillion threshold.
1-day global crypto market cap. Source: CoinMarketCap
This happened as allegations were circulating that Alameda Research, a company with strong ties to FTX, was having financial difficulties. In spite of this, Bankman-Fried said that the company’s assets were “fine” in an effort to put to rest any false rumors.
The FTT had an unexpected drop of 14% in a single hour. Over the course of the last day, the value of the exchange token has plummeted a startling 19.5% at the time of publication.