Last Week’s Market Wrap

Last week there were two events that should have been positive for cryptocurrencies, the US midterm Congressional elections and the US consumer inflation CPI. It seems like we’re seeing a split, with Republicans taking Congress while Democrats keep the Senate. Inflation showed a decent cool-off as well, which improved risk sentiment in financial markets immensely, but cryptocurrencies didn’t benefit from it.

Instead, they crashed as one of the major crypto exchanges FTX bankrupted in what seems to be another attack on the ongoing war on cryptos. FTX was forced to sell to Binance, while its FTT coin fell below $2  from around $25 where it was trading prior to the crash. As a result, all cryptocurrencies crashed, with BTC falling below $16,000 and Ethereum heading toward $1,000.

This Week’s Market Expectations

This week the crypto sentiment will be the main driver again and at the moment the sentiment remains negative in the crypto market. Sellers remain in control, so we’ll see when this will end. The broader risk sentiment in financial markets has turned positive, so there’s a good chance that cryptocurrencies turn bullish once the panic over the FTX event is over. Meanwhile, the crypto exchange AAX said it had suspended activity, citing a scheduled upgrade that had been delayed by turbulent markets.

Crypto Signals Update

Last week was very difficult week for cryptocurrency traders, following the FTX drama. The bullish run in the crypto market ended with a crash and FTX was forced to sell off to its rival Binance after halting withdrawals. The FTX’s token FTT fell below $2 and the buy signals we had in Ethereum and Rune got smoked.

 [[FTX]] Heading Toward $1?

The native coin of the FTX exchange FTT crashed lower and it continues to remain bearish as sellers push below $2. So, FTT has lost more than 90% of its value during the crash, so the sentiment remains deeply negative and it is very difficult for FTT coin to recover from here.

FTT/USD – Daily chart   

 BITCOIN Failed at the 100 SMA Again?

Bitcoin was trading in a rage above and below $20,000 for a few months, with a slight bullish bias as lows were getting higher. Buyers pushed the price toward the 100 SMA (green) on the daily chart, which turned into resistance again, rejecting BTC just before the crash came, which sent the price toward $15,000.

BTC/USD – Daily chart