Bitcoin fails to hold above $20K after bullish reversal, falls 9%

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Bitcoin jumped to $20,700 following the announcement of Binance’s plans to acquire FTX.

The leading cryptocurrency by market cap had been trading down at around $19,200 earlier in the day but surged 7.6% following the news.

However, the reversal was short-lived, as BTC has fallen back to $18,800 as of press time. Bitcoin fell as low as $18,420 before recovering slightly. The price action appears to be related to the liquidity crisis at FTX and the potential death spiral of the FTT token.

btc drop
Source: TradingView

The surge in Bitcoin’s price came after Binance announced it would acquire FTX, which temporarily caused the FTT token to jump 44% to $20.80. The token, however, only recovered for a short period and is now down to just $9.40 less than 2 hours after the acquisition announcement.

FTT death spiral
Source: TradingView

There has been $85.94 million in Bitcoin liquidations over the past 4 hours throughout Nov. 8. Across the entire crypto market, $303.68 million has been liquidated. The majority of the liquidations were from long positions, according to data from Coinglass.

coinglass liquidations
Source: Coinglass

 

 

 

The post Bitcoin fails to hold above $20K after bullish reversal, falls 9% appeared first on CryptoSlate.

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