This week in Crypto: FTX, Bitcoin and volatility
What’s happening in the crypto universe?
Crypto markets continue to stabilise. In this week’s Crypto Verse, we review the week that was in the crypto world and take a look at the charts of Bitcoin, Ether and Litecoin.
SBF goes on tour
Volatility in the crypto market diminished last week, despite further rumblings of market dysfunction and dislocation stemming from the FTX collapse. Sam Bankman-Fried, the disgraced CEO of the now-bankrupt exchange, embarked on an informal speaking tour in a bid to straighten the record.
At the New York Times DealBook Summit, Bankman-Fried admitted he “screwed up”, but denied trying to commit fraud. Instead, he said the issue was a failure of risk management. In an interview with Good Morning America, Bankman-Fried pleaded that he had no knowledge of “any improper use of customer funds”.
While questions remain about the outlook of the likes of Gemini, and the financial strength of Binance, which like FTX creates its own token to bolster the asset side of its balance sheet, fears of contagion have diminished. In recent days, hedge fund Fir Tree has filed a suit against Grayscale, out of fears about the underlying strength of the Grayscale Bitcoin Trust.
Three cryptos to watch
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Bitcoin
The price of Bitcoin remains in a downtrend.
However, the downside momentum is easing, and there are some small signs of bullish divergence between the price and the weekly RSI. Price is meeting resistance at prior support around $US17,5000. A break of that level could drive a pushback to the 20-week moving average, which has been a level that sellers have entered the market in the past. Meanwhile, technical support remains at around $US14,000.
Bitcoin weekly chart
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Ether
Ether too remains in a downtrend, although its price action looks slightly more constructive than its larger counterpart. Price has carved out a higher-low. But like Bitcoin, it is trading below its 200-week moving average and meeting some resistance at that level. Support appears to be around $US1050, while a break above $US1700 would begin to negate Ether’s downturn.
Ether weekly chart
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Litecoin
Litecoin has been a relative outperformer in the crypto space.
The weekly RSI has pushed above 50, with the price above the 20-week moving average. Price is meeting resistance now at the 50-week moving average and a resistance zone between 85 and 90. Support may be found at the 20-week moving average and upward-sloping support.
Litecoin weekly chart
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