Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

This week in Crypto: FTX, Bitcoin and volatility

What’s happening in the crypto universe?

Video poster image

Crypto markets continue to stabilise. In this week’s Crypto Verse, we review the week that was in the crypto world and take a look at the charts of Bitcoin, Ether and Litecoin.

SBF goes on tour

Volatility in the crypto market diminished last week, despite further rumblings of market dysfunction and dislocation stemming from the FTX collapse. Sam Bankman-Fried, the disgraced CEO of the now-bankrupt exchange, embarked on an informal speaking tour in a bid to straighten the record.

At the New York Times DealBook Summit, Bankman-Fried admitted he “screwed up”, but denied trying to commit fraud. Instead, he said the issue was a failure of risk management. In an interview with Good Morning America, Bankman-Fried pleaded that he had no knowledge of “any improper use of customer funds”.

While questions remain about the outlook of the likes of Gemini, and the financial strength of Binance, which like FTX creates its own token to bolster the asset side of its balance sheet, fears of contagion have diminished. In recent days, hedge fund Fir Tree has filed a suit against Grayscale, out of fears about the underlying strength of the Grayscale Bitcoin Trust.

Three cryptos to watch

  • Bitcoin

The price of Bitcoin remains in a downtrend.

However, the downside momentum is easing, and there are some small signs of bullish divergence between the price and the weekly RSI. Price is meeting resistance at prior support around $US17,5000. A break of that level could drive a pushback to the 20-week moving average, which has been a level that sellers have entered the market in the past. Meanwhile, technical support remains at around $US14,000.

Bitcoin weekly chart

Source: IG
  • Ether

Ether too remains in a downtrend, although its price action looks slightly more constructive than its larger counterpart. Price has carved out a higher-low. But like Bitcoin, it is trading below its 200-week moving average and meeting some resistance at that level. Support appears to be around $US1050, while a break above $US1700 would begin to negate Ether’s downturn.

Ether weekly chart

Source: IG
  • Litecoin

Litecoin has been a relative outperformer in the crypto space.

The weekly RSI has pushed above 50, with the price above the 20-week moving average. Price is meeting resistance now at the 50-week moving average and a resistance zone between 85 and 90. Support may be found at the 20-week moving average and upward-sloping support.

Litecoin weekly chart

Source: IG

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.