The liquidity crisis and related developments around the cryptocurrency exchange FTX have shaken the entire crypto sector down to its core, wreaking havoc on its largest assets, including the flagship crypto – Bitcoin (BTC) – which has never been weaker.
Specifically, the Bitcoin relative strength index (RSI) chart demonstrates that the maiden digital asset has reached an all-time low monthly index of 40.5, as renowned pseudonymous crypto trading expert PlanB observed on November 10. Bitcoins relative strength index chart. Source: PlanB
As it happens, the largest decentralized finance (DeFi) tokens relative strength has dropped below its previous all-time low, which was recorded in June 2022, when it stood at 43.7, almost 60% below the monthly all-time high value, as Finbold reported.
In the meantime, Bitcoin mid-term holders, who bought the token between three and six months ago, have been sending their BTC supply to exchanges in increased volume, which represents a bearish signal, as a CryptoQuant analyst confirmed on November 11. Bitcoin mid-term holders spot volume on all exchanges. Source: CryptoQuant Slow road to recovery Related Bitcoins volatility doubles in a week mimicking FTX Tokens moves, data reveals Brownstone Institute founder says Bitcoin could be headed back to $10,000; Here’s why ??El Salvador President Bukele dismisses rumors country holds Bitcoin on FTX
This information arrives at a time when Bitcoin is trying to keep its head above the $17,000 level, changing hands at the price of $17,325 at press time, which is 15.64% down across the week but still represents a modest recovery of 3.40% on the day. Bitcoin 7-day price chart. Source: Finbold
At the same time, another pseudonymous analyst, Moustache, noted that the current price activities of Bitcoin so far are only a bearish retest from the June lows of $17,600 and suggested keeping it simple:
Reclaim the Line = Bullish; Below the line = Bearish Bitcoin price activity analysis. Source: Moustache
Meanwhile, Bitcoins recovery was sparked by the consumer price index (CPI) data for October coming out lower than anticipated, with inflation rising 7.7% instead of the expected 8% and lower than Septembers 8.2% price hike.
As a result, the token added $15 billion to its previously declining market capitalization in just 15 minutes after the CPI results became public, halting the bloodbath that had been slashing crypto prices for several days up to that point.
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