Breaking: Tether begins freezing FTX USDT at the request of Law enforcement

The issuer of Tether, the largest stablecoin in the cryptocurrency industry, is currently freezing up to $46 million of USDT following instructions from law enforcement. According to Whale Alert, a Twitter account dedicated to tracking large cryptocurrency transactions, the blacklisted/frozen address is owned by FTX exchange.

FTX exchange has faced a liquidity crisis after rumors of insolvency sparked massive withdrawals. Attempts to save the exchange continue to hit walls, starting with Binance exchange which backed out of a deal to acquire the firm.

Meanwhile, crypto prices have started to recover, with Bitcoin price jumping above $17,000. Before BTC printed the ongoing bullish candle, it tested support at $15,544, as observed in the chart below.

The Stochastic oscillator shows that buyers are gradually gaining the upper hand. This indicator is useful in identifying overbought conditions (above 70.00) and oversold conditions (below 30.00).

Short-term long positions will be safe if the Stochastic sustains a northbound move. Buyers will trigger long-term buy positions if the indicator returns above the midline and even closes the gap to the overbought region.

BTCUSD daily chart

Bitcoin price needs to close the day above $17,000, as traders will view this as confirmation for a sustainable move to highs above $20,000 – where BTC is expected to resume its push for $30,000.