Technical Analysis of BTC/USD for November 10, 2022

Crypto Industry News:

After Binance CEO Changpeng Zhao announced that the company would liquidate its position in FTX Tokens, FTX CEO Sam Bankman-Fried (hereinafter SBF) became active on social media, apparently trying to suppress rumors of a conflict between major exchanges.

According to Bankman-Fried's Twitter posts today, FTX "came to an agreement on a strategic deal" with Binance after trying to clear the backlog of payouts. SBF said it asked Binance to step in with the aim of "eliminating liquidity crises" and covering assets on a 1: 1 basis.

Zhao issued his own statement on Twitter, saying FTX turned to Binance for help on November 8 in response to the "major liquidity crisis". According to the Binance CEO, the transaction SBF mentioned was a non-binding letter of intent to acquire FTX.

Technical Market Outlook:

The BTC/USD pair lost over 27% from the top made at the level of $21,471. The price hit the level of $15,555 which is located below the technical support and the yearly low seen at $17,600, so the bears made a new yearly low during the sell-off. So far the bounce from this level was shallow and the market is trying to test the level of $17,600 again. The market conditions on the H4 time frame chart are extremely oversold, however, no significant bounce has been made yet. The nearest technical resistance zone is seen at $17,600 $18,150 and $18,220.

Weekly Pivot Points:

WR3 - $21,429

WR2 - $21,125

WR1 - $20,930

Weekly Pivot - $20,825

WS1 - $20,629

WS2 - $20,524

WS3 - $20,222

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout in the long term.