CRYPTO NEWS

Bitcoin Recovery Wades Off Celsius Liquidation, But For How Long?

The price of bitcoin has made a remarkable recovery above $20,000 after a brutal week riddled with crashes. These dips had driven decentralized finance (DeF)/ lending protocol Celsius, to the brink of liquidation. However, as the price has recovered, the platform is once again able to hold out for longer as its liquidation point is now a bit further away. The question remains if the recovery will hold and if Celsius will be able to avoid liquidation.

Liquidation Price Pushed Back

With the price of bitcoin above $20,000, the liquidation price of Celsius is now a little bit distant. This has not changed the sentiment around the lending protocol though, which has now suspended withdrawals for 7 days at this point. Its liquidation price still remains firmly at $14,000 but the company has assured the community that it continues to work to rectify the issues.

Celsius had first announced the transfer and withdrawal freeze last Monday citing unstable market conditions as the reason behind the move. Even with the recent recovery, the lending protocol remains at risk of liquidation, and as such withdrawals and transfers remain frozen.

Related Reading | Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story

In its most recent communique with the public, Celsius has said that it is working with officials to find a suitable resolution to its issues. “As has been a priority since our company’s inception, we maintain an open dialogue with regulators and officials,” said Celsius. “We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a resolution.”

 However, if history is anything to go by, then it is very unlikely that investors will be able to withdraw their funds. Speculations in the space remain largely in the camp of eventual bankruptcy especially given the Three Arrows Capital (3AC) debacle.

BTC recovers above $20,000 | Source: BTCUSD on TradingView.com
Will Bitcoin Keep Recovering?

The current trajectory for bitcoin points towards more recovery to come but that it is only if this turns out to be a legitimate recovery and not a bull trap. This would essentially see the price test the $21,000 resistance level before the end of the trading day.

Related Reading | Don’t Expect A Bitcoin Recovery Anytime Soon, Galaxy Digital CEO

That said, the digital asset price is still trading below its 20-day moving average. While this can often point toward a buying opportunity, it can also show that investors are not willing to put money into the market at the prices they have over the last two weeks.

Market sentiment is also in extreme fear, pointing to even more wariness among investors. If the sentiment were to turn along with prices, then the market could see more buying pressure, which could see the uptrend continue.

Bitcoin is trading at $20,731 at the time of this writing. It remains the world’s largest cryptocurrency with a market cap of $396 billion.

Featured image from Vulcan Post, chart from TradingView.com

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FTX token price outlook after BlockFi acquisition deal

FTT holds steady at a $24 support level. FTX exchange to acquire BlockFi for $240 million. The Crypto sector faces bearish pressure amid macro-economic factors. As the cryptocurrency sector faces bearish pressure, FTT and other tokens native to crypto exchanges have remained resilient. FTT has only lost 9.6% in the past month since trading at::Listen

  • FTT holds steady at a $24 support level.

  • FTX exchange to acquire BlockFi for $240 million.

  • The Crypto sector faces bearish pressure amid macro-economic factors.

As the cryptocurrency sector faces bearish pressure, FTT and other tokens native to crypto exchanges have remained resilient. FTT has only lost 9.6% in the past month since trading at $27, as per data from CoinMarketCap

Comparatively, bitcoin has plunged 36% in the bearish market, which is attributed to macroeconomic factors. The hike of interest rates by the US Federal Reserve and the political turmoil in Europe has shifted attention to the less risky assets.

FTT token is currently trading at $24.4 after a 0.65% gain in the past day but remains down 8.98% in the last week. Overall, the token is trading at 69% below its all-time high of $76.4.

FTX gets option to acquire BlockFi for $240 million

FTX has signed a deal with the option to acquire the embattled crypto lender BlockFi for $240 million in a move to benefit from the bearish crypto space. The deal also includes extending the lender a $400 million revolving credit facility. Although the announcement is yet to impact the value of the FTT token, investors are expecting to benefit from the long-term gains from the expansion.

FTX has also been keen on its geographical expansion. The exchange was licensed in the first quarter to operate a virtual asset exchange and clearing house services in the UAE. Aside, The firm’s European subsidiary was awarded a license to offer services to institutional investors.

FTT holds steady at $24 support

Source: Tradingview 

From the daily technical outlook above, FTT is consolidating at the $24 support level after dropping below $35. The token has been on a steady decline since reaching a high of $51 towards the end of March. The RSI is at 42, affirming that the token has not entered the oversold zone, and further downward momentum could be seen. With the token at a key support level, a drop below it will open further weakness, and the FTT can trade lower.

Summary

As macro-economic factors continue to hold down the various crypto assets, FTT will remain largely bearish before a trend reversal. If the token goes below the current support level of $24, it could open further downward pressure. A buy entry is only recommended if the price clears above the current level with the confirmation of a bullish price signal.

The post FTX token price outlook after BlockFi acquisition deal appeared first on CoinJournal.

Bitcoin Recovery Wades Off Celsius Liquidation, But For How Long?

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