Bitcoin Drew Red Candles as Binance FUD Surrounds the Market

    TheMorningCrypto Desk
    TheMorningCrypto Desk
    Published on December 17, 2022 1:42 PM

    Updated on January 16, 2023 11:13 AM

    Bitcoin plummeted below $17,000 on December 17, as bearish pressure mounted in the aftermath of yesterday's poor U.S. retail sales numbers.
    Bitcoin Drew Red Candles as Binance FUD Surrounds the Market
    Source: Unsplash

    Bitcoin plummeted almost 6% in two days as Binance FUD circles around the crypto market. Concerns about Binance, the largest global exchange, dominated the air, despite CEO Changpeng Zhao's best attempts to dispel what he dubbed "FUD." Longtime crypto traders were also wary of the legitimacy of the "craziest tales" regarding the crypto exchange business.

    On the same day, Binance's proof of reserves report was removed by auditor Mazars Group, which also said that it would no longer deal with crypto sector customers.

    Meanwhile, in a Twitter debate, Zhang openly mocked a statement by outspoken television celebrity Jim Cramer, who stated that he "would trust my money more in Draftkings than I would Binance."

    The gains Bitcoin and other crypto made during the Federal Meet this week have all gone. Ethereum (ETH) plunged more on Friday, approaching the $1,200 level. ETH recorded a low of $1,210.35 earlier in the day, after reaching a high of $1,291.32 on Thursday.

    With today's loss, Ethereum has fallen for the third straight session, breaking through a critical barrier of $1,230.

    RELATED: Bitcoin End in Green as Fed Indicates Further Hike on Interest Rates

    Bitcoin Price Analysis

    At the time of writing, the price of Bitcoin is USD 16,715.01, with a 24-hour trading volume of USD 25,378,611,334. In the previous 24 hours, Bitcoin has dropped 3.99%. BTC is now ranked first on CoinMarketCap, with a market valuation of USD 321,528,203,440. It has a maximum supply of 21,000,000 BTC coins and a circulating supply of 19,235,900.


    Source: CoinMarketCap

    ALSO READ: How Bitcoin and Inflation are related?

    The chart has previously formed a rising channel pattern for short-term traders. The support was broken earlier than predicted on December 16th. The price is settling somewhere between $16,865 and $16,527.

    The Fib retracement reveals a 1.618 fib level, indicating a further slide to $15,934. The price is stabilizing between 1 and 1.618 fib levels for the fib retracement.

    The RSI on the 4-hour chart reveals that BTC broke through the index's 30 levels and entered the oversold territory. The 30 RSI was broken on December 16 but regained on December 17. This means that short-term traders will see a price increase shortly.


    Source: TradingView

    Bitcoin (BTC) dipped below $17,000 in today's session as markets continued to react to retail sales data from last month. As retail sales in the United States fell short of expectations, BTC/USD fell to an intraday low of $16,997.54 earlier in the day.

    This comes less than a day after prices were on the verge of breaking beyond $18,000, reaching a high of $17,725.88.

    According to the chart, negative pressure increased after a breakdown of a floor at $17,200, with the price currently trading at $16,708.

    This little reversal occurs when the 14-day relative strength index (RSI) approaches a support level of 45.00.

    The index is presently tracking at 43.00, and price strength has already reached the aforementioned floor, with BTC breaking through the $16,800 support.


    Source: CoinMarketCap

    The Bitcoin fear and greed index is at 28 which shows the market sentiment is in fear. The fear comes as Bitcoin fell after the FED meeting as short-term investors came into the market made a profit and exited the next day. 


    Source: Lookintobitcoin

    Liquidation of $33 Mn Worth of Bitcoin Post CPI Gains

    Bitcoin and Ethereum have just given up all of their recent gains following this week's upbeat CPI news.

    More than $117 million in levered positions have been blown out throughout the whole market, with Bitcoin and Ethereum accounting for the majority of those holdings.

    ETH has seen around $45 million in liquidations in the last 24 hours, while BTC has had over $33 million. According to Coinglass liquidation statistics, the next greatest liquidations were Dogecoin ($3.3 million) and Litecoin ($3 million).

    Over the last 12 hours, more than 92% of all liquidations were blown out of long positions.


    Source: Coinglass

    Bitcoin FAQs

    Q1) How does Bitcoin make money?

    Ans: Miners on the Bitcoin network make money by validating blocks and being reimbursed for their efforts. Bitcoins may be traded for fiat money and used to make purchases from merchants and retailers who accept them via cryptocurrency exchanges.

    Q2) Can BTC addresses be hacked?

    Ans: Cryptocurrency is a decentralized digital money that secures transactions and ownership information via encryption. Transactions involving cryptocurrency are recorded on a digital database known as a blockchain. The fundamentals behind blockchain technology make hacking into a blockchain almost difficult.

    Q3) Are Bitcoin legal?

    Ans: Although many countries recognize bitcoins as a kind of finance, just a few consider them legal tender. Outright restrictions exist in China, Algeria, Bangladesh, Egypt, Iraq, Morocco, Nepal, Qatar, and Tunisia.

    Q4) How long will it take to mine 1 Bitcoin?

    Ans: It takes about 10 minutes to mine one Bitcoin, however, this is with perfect hardware and software, which isn't always cheap and only a few individuals have it. Most users can mine a Bitcoin in 30 days, which is more usual and reasonable.

    Q5) Can I mine Bitcoin on my phone?

    Ans: Solo or pool mining services are available for crypto mobile mining on iOS and Android platforms. However, Bitcoin can’t be mined using mobile phones as it is a very heavy process and requires heavy equipment.

     Disclaimer: The article is merely the opinion of the writer and is not intended to be taken as investment advice.