- From a crypto technical standpoint, things are not looking good, and further bleeding seems more probable.
- If the bears consistently push Bitcoin and crypto prices on a falling trend, the next strong support level is between $13k and $16k.
A crypto crash has pushed Bitcoin and the altcoin market further down in the past 24 hours following FTX’s acquisition news. The total cryptocurrency market cap has declined over 8.3 percent, to around $946 billion, per the latest data. According to statistical data provided by Coinglass, over $742 million have been rekt in the past 24 hours.
Notably, over 354,838 crypto traders were liquidated in the past 24 hours, with the most significant single liquidation order on Binance’s BTCUSDT pair valued at $6.70 million. FTX CEO and founder Sam Bankman-Fried have seen his net worth decline from over $14 billion to around $900 million in just a couple of hours.
Moreover, the FTT token has slumped over 70 percent in the past 24 hours to trade below $5 from an ATH of $84 a year ago.
While some analysts predicted the dip, the liquidation of FTT by Binance triggered a fresh bear market. Moreover, FTX and Binance are high-profile crypto firms, ranked top ten by daily traded volume. The liquidation of a top crypto firm backed by deep-pocketed venture firms has sparked fear over the rest of the cryptocurrency exchanges.
Ironically, Bankman-Fried had predicted that many of the existing cryptocurrency exchanges would collapse during the ongoing bear market, as they are silently insolvent. Furthermore, Coinbase noted in its 2022 Q3 report that trading volume has significantly slumped in the past few months and has no signs of recovery in the near future.
How deep will the crypto market dip before hitting bottom?
The cryptocurrency market is heavily controlled by Bitcoin price trends. As such, whenever Bitcoin traders show fear in the market, the entire industry responds similarly. The top crypto projects, with leading total value locked (TVL) like Ethererum, significantly affect the entire altcoin industry.
Consequently, international regulations affecting the top coins have a high impact on the entire crypto industry. For instance, the Ripple vs SEC case, expected to have outcomes in the next few months, has a long-lasting effect on the entire cryptos industry.
As such, crypto firms are coming together to fight international regulations that hamper blockchain development and adoption. Coinbase, among other firms, recently joined the Ripple vs SEC case as an interested party.
From a crypto technical standpoint, things are not looking pretty good, and further bleeding has a significant probability.
In the history of Bitcoin, it has never stayed below the 200MA for this long since 2015. The current bear market is a significant turning point in the history of Bitcoin prices.
If the bears consistently push Bitcoin and crypto prices on a falling trend, the next strong support level is between $13k and $16k.
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