During the European session, Bitcoin finally made some upside movement, having bounced off the double-bottom support level of $15,650. Genesis Global Capital, one of the largest cryptocurrency lenders, halted customer withdrawals due to a liquidity issue caused by an increase in withdrawal requests following the FTX collapse.
Following the demise of FTX, Genesis announced on November 16 that withdrawals would be temporarily halted due to “unprecedented market turmoil.”
On November 10, the company disclosed publicly that it had money locked in an FTX trading account worth approximately $175 million. The struggling cryptocurrency investment bank was in talks with potential investors about raising another $1 billion.
Furthermore, according to reports, the cryptocurrency exchange Binance held talks about potentially saving the lender controlled by the Digital Currency Group.
The Wall Street Journal reported on November 21 that Genesis had approached Apollo Global Management and Binance for funding. Binance, however, rejected it due to potential conflicts of interest. As it seeks new funding, Genesis Global Trading has mentioned bankruptcy as a possible option.
On November 21, Genesis stated that it had “no plans” to declare bankruptcy anytime soon and would try to reach a “consensual” solution. Because of the news, BTC/USD fell to new two-year lows.
Lack of Trust in Exchanges Triggers FUD
The recent Bitcoin decline surprised most market participants because the dust had settled following the FTX crisis. Despite Santiment’s explanation, the first cryptocurrency is still struggling to hold on to its value.
Santiment, an analytical firm, tweeted about the declining value of BTC/USD on November 21. According to the research firm, FUD caused the drop to $15,800 for the first time in two years due to the growing fear of centralized exchanges following the FTX crisis.
The incident could have also had an impact on Bitcoin address activity, which had reached a six-month high. Furthermore, according to Santiment, Bitcoin reached the benchmark over the weekend.
On November 20, 1.1 million BTC addresses were active on a daily basis, according to data analysis. It suggested that the currency was distributed to numerous addresses.
Furthermore, it appeared that many investors profited by transferring assets away from centralized exchanges. It was due to the fact that supply outside of exchanges outweighed inflows into exchanges. Furthermore, the reported exchange influx has decreased in recent days.
On November 17, the most recent increase per inflow was 253,000. It suggested that, despite little selling pressure, investors remained skeptical of CEXes.
El Salvador’s Bitcoin Adoption “not Very Sustainable”
Vitalik Buterin, the creator of Ethereum, has questioned the Bitcoin community’s enthusiasm for El Salvador and its president, Nayib Bukele, claiming that they have overlooked the fact that Bukele’s administration is “not very democratic.”
According to Ethereum co-founder Vitalik Buterin,
“many Bitcoin users overlooked the fact that the government in Bukele is not a particularly democratic government, that it has a lot of issues, and that they are not very good at respecting other individual freedoms.”
El Salvador was the first country to make Bitcoin legal tender, requiring businesses to accept the largest cryptocurrency as payment.
The action sparked widespread resentment among citizens and businesses. The adoption of El Salvador’s Bitcoin law coincided with the cryptocurrency Bull Run, during which the price of Bitcoin reached a high of more than $69,000.
The cryptocurrency market has now collapsed, with Bitcoin losing more than 76% of its value since its peak.
Buterin stated that the Bitcoin adoption model in El Salvador was built on the assumption that prices would rise, but because Bitcoin’s price fell, “it now looks just terrible, and not many people are using it.”
The current Bitcoin price is $16,156, and the 24-hour trading volume is $33 billion. Bitcoin has gained by over 2% in the last 24 hours.
CoinMarketCap now ranks first, with a live market cap of $310 billion. It has a total quantity of 21,000,000 BTC coins and a circulating supply of 19,213,406 BTC coins.
The BTC/USD pair began trading at $15,766 on November 22, reaching a high price of $16,281 and a low price of $15,616. Near the $15,850 level, Bitcoin is gaining immediate technical support. Candles closing above this level indicate the possibility of a bullish reversal.
A tweezer’s bottom pattern above $15,850 suggests the possibility of a bullish reversal. As a result, increased buying pressure may propel an uptrend to the $16,500 and $17,180 resistance levels.
If the $17,180 level is broken again, there may be more room for buying until the $18,650 level, which is extended by the 38.2% Fibonacci retracement level.
The RSI and MACD indicators are still indicating a sell trend below $16,500, and the 50-day moving average is also indicating a sell trend. As a result, a bearish breakout below a triple bottom pattern may expose the BTC price to the $14,475 range.
Today, keep an eye on $15,850 as it is likely to act as a pivot point for Bitcoin.
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