Bitcoin is bearish today after dropping 2.4% in the past 24 hours. At the time of writing, Bitcoin was trading at $20,668, according to CoinGecko. The broader market is also bearish amid the uncertainty surrounding the FTT token and the US mid-term elections.
Bitcoin slips back below $21k
Last week, Bitcoin made an impressive rally after breaking past $21k. The coin’s recovery came after the US job data was stronger than expected, and the US dollar index (DXY) dropped. The US dollar and Bitcoin are inversely correlated.
However, the bullish momentum has faded, and Bitcoin shows signs of dropping lower. In the last 24 hours, Bitcoin has traded between $20,575 and $21,300, indicating high volatility in the token. Bears seem to be having control of the market.
The global market is also bearish. All the top ten cryptocurrencies are trading in the red zone, with Solana making the most losses, with a 13% decline over the past 24 hours. The total market capitalization currently stands at $1.063 trillion.
Bitcoin’s price chart indicates that the coin has recorded intense selling pressure. In the last 24 hours, the Relative Strength Index (RSI) has dropped to 30, indicating high selling pressure. The Moving Average Convergence Divergence (MACD) line is also below the signal line, which points toward an intense bearish sentiment.
If the market fails to recover and Bitcoin continues shedding value, the coin will likely drop below $20,500. The major support stands at $20,300, and if the price fails to hold above this level, Bitcoin will likely drop below $20K.
Binance to sell its entire FTT holdings
The CEO of Binance, Changpeng Zhao, has said that the exchange will liquidate all the FTT holdings in its books, which has triggered the ongoing price drop across the crypto market. In a Twitter thread, Zhao said the sale was because of “recent revelations that have come to light.”
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ Binance (@cz_binance) November 6, 2022
In another tweet, the Binance CEO said that the liquidation of FTT was “post-exit risk management” amid lessons learned from the collapse of Terra. He also said that the exchange would not support those who lobbied against other players in the industry.
Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.
— CZ Binance (@cz_binance) November 6, 2022
The sale of FTT by Binance comes amid speculations about Alameda Research’s insolvency. A leaked balance sheet from the company showed that billions of dollars worth of its assets were in the FTT token. Alameda Research is owned by the CEO of FTX, Sam Bankman-Fried, and if the rumors prove true, they could trigger adverse effects across the market.
The upcoming mid-term elections in the United States are also creating market uncertainty, and a rally is unlikely to happen in the short term.
Altcoins to consider buying today
As the broader market bleeds, you might consider investing in these three altcoins with the potential to rally higher.
Dash 2 Trade is a new cryptocurrency project whose presale has already raised more than $5.45 million. The presale is currently in stage three, and D2T could be the next token to explode. Dash 2 Trade is a platform offering crypto traders signals to help them make informed investment decisions.
The other presale to invest in today is for IMPT. IMPT is the native token for the IMPT.io platform seeking to lower carbon emissions through blockchain. The IMPT presale has raised more than $12.39 million.
The third presale to consider investing in is for Calvaria (RIA). Calvaria is a blockchain gaming project focused on attracting traditional and blockchain gamers. The RIA presale is in the fourth stage after raising over $1.5 million.
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