Bitcoin extends steep fall as uncertainty grows
Bitcoin extends steep fall into second day, being down over 7% into early US session on Wednesday, following Tuesday’s 9.5% drop (the biggest one-day loss since Sep 13).
Cryptos are under increased pressure for the second day, as fears about the financial health of major exchange FTX grow, despite plans for a rescue deal from bigger rival Binance, which signed a nonbinding agreement to buy FTX’s non-US unit to help cover a liquidity crunch of the rival exchange.
The uncertainty remains high and could lead to further losses as two sides so far did not disclose the terms of their agreement and also unclear situation over whether they will proceed with agreement.
Bitcoin fell to the lowest in two years, with break of a multi-month base at 18600 zone (reinforced by Fibo 76.4% of larger 3317 / 68911 advance) adding to negative outlook.
Firm break here would risk acceleration towards 12633 (100MMA) and unmask psychological 10000 level.
Bearish daily and weekly studies support the action, with bears expected to remain firmly in play unless a substantial change in fundamentals occurs.
Res: 18798; 20000; 21287; 25194
Sup: 16843; 13828; 13207; 12633
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Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
