BTC Bears Eye Sub-$19,000 on FTX-Binance Feud and LBRY Loss to the SEC

Key Insights:

• Bitcoin (BTC) extended its losing streak to three sessions on Monday, while ethereum (ETH) ended the day flat.
• This morning, a feud between Binance and FTX and an SEC win in its case against LBRY sent the pair into the deep red.
• The technical indicators have turned bearish, signaling downward price trajectories.

Ethereum (ETH) ended the day flat on Monday. Following a 3.63% loss on Sunday, ETH ended the day at $1,568.

A mixed start to the day saw ETH fall to a mid-morning low of $1,546. Steering clear of the First Major Support Level (S1) at $1,542, ETH rose to a late high of $1,609. However, coming up short of the First Major Resistance Level (R1) at $1,617, ETH eased back to $1,568.

On Monday, bitcoin (BTC) fell by 1.54%. Following a 1.79% decline on Sunday, BTC ended the day at $20,609.

A mixed start to the day saw BTC rise to an early high of $21,083. Coming up short of the First Major Resistance Level (R1) at $21,240, BTC slid to a late low of $20,421. BTC fell through the First Major Support Level (S1) at $20,762 and the Second Major Support Level (S2) at $20,592 before a partial recovery to $20,609.

A bullish NASDAQ Composite Index session failed to provide support. Finding support from investor sentiment towards the US Mid-Terms and the hopes of a Fed pivot, the NASDAQ rose by 0.85%.

In contrast, the crypto market fell by $7.1 billion (-0.73%) to $974.9 billion.

However, this morning’s losses have been significant, with a feud between Binance and FTX sending FTT to a new 2022 low of $15.07. News of Binance’s plans to sell off its FTX tokens sent shockwaves through the crypto market, reminding investors of the Terra Labs collapse.

Adding to the bearish mood was overnight news of the SEC winning its case against LBRY. While there are hopes that the outcome has little bearing on the SEC v Ripple case, there have been suggestions that the SEC requested the latest extension to allow the Court decision to come in.

Today, there are no US economic indicators for investors to consider. The lack of stats leaves BTC and ETH in the hands of the crypto news wires and the NASDAQ Composite Index, which could deliver support.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 5.62%% to $1,480. A bearish morning saw ETH slide from an early high of $1,577 to a low of $1,433.

ETH fell through the First Major Support Level (S1) at $1,540 and the Second Major Support Level (S2) at $1,511. Finding support at the Third Major Support Level (S3) at $1,448, ETH tested resistance at $1,500 before easing back.

Technical Indicators

ETH needs to move through S2, S1, and the $1,590 pivot to target the First Major Resistance Level (R1) at $1,603 and the Monday high of $1,609. An ETH return to $1,600 would signal a bullish afternoon session. However, moves through the US session will depend on Binance and FTX news.

In the event of an extended rally, the Second Major Resistance Level (R2) at $1,637 and $1,650 would likely come into play. The Third Major Resistance Level (R3) sits at $1,700.

Failure to move through S2, S1, and the pivot would leave the Third Major Support Level (S3) at $1,448 in play. However, barring an extended afternoon sell-off, ETH should avoid sub-$1,400.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below the 100-day EMA, currently at $1,529. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish signals.

A move through S2 ($1,511) and the 100-day EMA ($1,529) would bring S1 ($1,540) and the 50-day EMA ($1,570) into view. However, a fall through the 200-day EMA ($1,477) would leave S3 ($1,448) in play.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 4.51% to $19,680. A bearish morning saw BTC fall from an early high of $20,692 to a low of $19,377.

BTC fell through the First Major Support Level (S1) at $20,326 and the Second Major Support Level (S2) at $20,042. The Third Major Support Level (S3) at $19,380 limited the downside.

Technical Indicators

BTC needs to move through S2, S1, and the $20,704 pivot to target the First Major Resistance Level (R1) at $20,988 and the Monday high of $21,083. A return to $20,000 would signal a rebound.

In the case of an extended rally, the Second Major Resistance Level (R2) at $21,366 and resistance at $21,500 would likely come into play. The Third Major Resistance Level (R3) sits at $22,028.

Failure to move through S2, S1, and the pivot would leave the Third Major Support Level (S3) at $19,380 in play. Barring another extended sell-off, BTC should avoid sub-$19,000.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 200-day EMA, currently at $20,161. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA to deliver bearish signals.

A move through S2 ($20,042) and the 200-day EMA ($20,161) would bring S1 ($20,326) and the 100-day EMA ($20,431) into play. A move through the 50-day EMA ($20,662) would signal a shift in sentiment.

However, a failure to move through S2 ($20,042) would leave S3 ($19,380) in view.