This week in Crypto: Sam Bankman-Fried arrested

Crypto assets continued to stabilize despite ongoing concerns about market and regulatory risk. In this week’s Crypto Verse, we take a look at the major developments in the industry last week, and analyse the charts of Bitcoin, the Crypto 10 Index and Cardano ($1).

Volatility drops as contagion fears diminish

Confidence is returning to the market, as volatility subsides following the spectacular collapse of FTX a month ago. The fall-out from the incident continues, however, with disgraced CEO Sam Bankman-Fried arrested by Bahamian authorities in anticipation of an extradition request by the United States.

Bankman-Fried had remained prolific in the media as he attempted to salvage his image. Despite that, Bankman-Fried was refusing to appear before a US Senate Banking Committee hearing into the collapse of FTX, which is scheduled for this week.

Further allegations of improper behaviour have emerged in recent days about the events leading to FTX’s bankruptcy. News reports are alleging that members of the company’s “inner circle” had formed a chat group called “Wirefraud” to discuss secret information before the exchange’s failure.

It’s expected new FTX CEO John Ray III, who is responsible for winding up the business, will address this issue when he appears before the Senate hearing, along with the supposed independence of FTX US, and the ongoing effort to secure the company’s assets.

In other news, the world’s largest Crypto exchange, Binance, is also drawing negative press, amidst allegations that the company and its executives, including CEO Changpeng Zhao, violated money laundering laws. The Department of Justice has flagged possible plea deals with the company. Binance denies any wrongdoing.

Three cryptos to watch

• Bitcoin

Bitcoin remains in a clear downtrend. However, downsider momentum has slowed. Price is currently grinding along technical resistance at $17,500, with a break of that level potentially bringing the 20-week moving average into focus. Major, long-term support remains around $12,000 - $14,000.

Bitcoin weekly chart

• Crypto 10 Index

In the short-term, the Crypto 10 Index remains rangebound. Resistance is currently around 8050, while support appears around a possible double bottom of 5130. The 20-week moving average may also attract sellers in the event of any future rally.

Crypto 10 Index weekly chart

• Cardano

As one of the smaller alt-coins, Cardano ($1) has established a clear downtrend. Downside momentum has eased recently. However, price action remains defined by a series of higher-lows. Technical resistance appears to be around the 20-day moving average.

Cardano weekly chart