Bitcoin shrugs off FTX news, but analysts warn BTC and altcoins are due significant losses.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
FTX CEO tells of “complete failure of corporate controls”
The pair showed acclimatization to events around the FTX insolvency, the latest including revelations that Alameda Research had been immune from liquidation while trading on the platform.
After the departure of Sam Bankman-Fried, new CEO John Ray III wasted no time in acknowledging the extent of the problems left in his wake.
In a filing with the U.S. Bankruptcy Court for the District of Delaware, Ray describes the corporate control of FTX as a “complete failure.” He wrote:
“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”
As Cointelegraph reported, United States lawmakers intend to hold a dedicated hearing on FTX next month, while Bankman-Fried is reportedly subject to efforts to extradite him from the Bahamas.
BTC price action has nonetheless managed to shake off related volatility, as evidenced in the modest reaction to news of contagion impacting the crypto lending arm of Genesis Trading on Nov. 16.
Analyzing the current climate, however, popular commentators on Nov. 17 were far from optimistic.
“Bulls really need to reclaim $17,600 for us to be able to shift nicely in a long position,” Crypto Tony tweeted, adding that “for now bears are in control.”
Il Capo of Crypto, repeating a warning that altcoins could see further losses of up to 50%, was even franker in his message to followers.
“I repeat… EXIT ALL THE MARKETS,” he stated on Nov. 16, suggesting that “most people are not ready for what is coming.”
Bid liquidity offers $13,500 support
On the topic of potential BTC/USD downside targets, fellow analyst Titan of Crypto flagged various high-liquidity zones on exchange order books.
The largest of these, comments said, lies at $13,500.
“Although there’s liquidity to grab around $18.5k, $17.2k and $15.5k, the bigger one is lower at $13.5k,” they stated.
Analytics resource Material Indicators, meanwhile, calculated the total bid liquidity between the spot price and $13,000 as $195 million on the Binance order book.
BTC/USD order book data (Binance). Source: Material Indicators/Twitter
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