Overall, the crypto market is in a bearish sentiment at the moment, with BTC and ETH stuck in a relatively tight trading range. This has been driven by growing uncertainty about the future of cryptocurrencies, as tight regulations and increased scrutiny from governments and financial institutions have led to a decline in investor confidence.
The crash of the FTX exchange could extend the crypto winter, according to a report by Coinbase. After the Nov. 16 Wall Street open, Bitcoin fell to intraday lows of $16,434 as another potential victim was claimed in the FTX scandal.
The bankruptcy filing of FTX on Nov. 11 has had a negative impact on several companies that focus on cryptocurrencies, which now have assets stuck with the company. Additionally, investors are worried that this could cause further damage to the cryptocurrency ecosystem if it spreads any further.
At the moment of writing, Bitcoin is trading at $16,597.14, down by 1.55%, according to data from coinmarketcap.com.Bitcoin is still struggling to climb above the $17,000 resistance level despite a recent rise in its price. Genesis Global Capital, the crypto lending service of Genesis Trading, has recently stopped processing withdrawal requests due to insufficient funds. This might have hindered Bitcoin’s price recovery, as the crypto lending service is one of the major sources of funds for BTC investors.
According to a series of tweets from Digital Currency Group (DCG), the decision to shut down Genesis Trading was directly related to the FTX fiasco.
Bitcoin closed yesterday’s trading session below the $17,000 level. This puts it at risk of falling further toward the $16,000 support level in the near term. The Exponential Moving average of $18,200 has started to head downward, and the MACD indicator is also indicating a bearish market.
However, if Bitcoin manages to correct higher in the near term, it could find resistance at $17,000 and $18,200 before potentially making another attempt at breaking above this level. Moreover, if the price breaks above the 20-day EMA, it could signal a potential bullish reversal.
Meanwhile, most other major cryptocurrencies are trading in the red today as well, with Ethereum and Ripple seeing particularly significant price declines of 2.99% and 1.95% respectively. Ethereum is trading at $1,207.02 while Ripple is trading at $0.38.The worst performing altcoins on the daily basis are Curve Dao token which has declined by 8.03% followed by Stacks STX which is down by 6.58%. The overall cryptocurrency market cap stands at $829.95 billion while Bitcoin’s market dominance hovers around 37.59 percent, according to data from coinmarketcap.com.
The overall cryptocurrency market is looking to recover from yesterday’s steep decline, but it remains vulnerable to a sudden sell-off driven by negative news or events. With most of the digital assets trading at around support levels, the market could see a further decline if negative sentiment prevails. Traders will be looking out for any signs of a potential uptrend to potentially start buying and accumulating cryptocurrencies in anticipation of a price rally. However, until then, many investors are likely to remain on the sidelines as the crypto winter continues to drag on.