The failure of the FTX centralized exchange will carry with it the dust of unhealthy management that caused a shock among cryptocurrency newbies in the coming months.
Less traumatizing is the impact among longtime investors and enthusiasts who, having experienced more complicated periods, seem to be absorbing the recent declines with more balance.
The bullish acceleration a few hours before the November close completed a reversal that began last week, limiting the damage that until a few days ago relegated the monthly performance among the worst ever with declines of more than 25% since the beginning of the month.
Although the jump does not erase the negative balance on a monthly basis, losses for Bitcoin (-16%) and Ethereum (-17%) limit the damage by laying the groundwork for a more robust recovery in the coming weeks.
The recovery is needed to turn the performance of the last quarter of the year back into the positive.
If it does not happen for Bitcoin it would be the 4th consecutive quarter in the red. A condition that has never occurred so far in the history of the queen of cryptocurrencies.
The early hours of December indicate a desire for prices to consolidate the rise of the last days of November above medium-term resistance on a day in the red.
Blue chips split among the upside signs with the top two Polkadot (DOT) and Uniswap (UNI) both up close to 4% on a daily basis, followed by Avalanche (AVAX), Polygon (MATIC), Chainlink (LINK) and Monero (XMR) all up 1% from yesterday’s levels.
On the opposite side Dogecoin (DOGE) losing over 3%, by a few decimals snatching the black jersey from XRP down 2.5% followed at a distance by Solana (SOL) at -1%.
After 20 days the price of BTC recovers $17k showing good intentions to confirm the reversal timidly started on 21 November after hitting the lowest bottom in two years in the $15,600 area.
The second bullish push that developed between 28 and 30 November was accompanied by high trading, indicating the closing of downward positions.
In fact, the highest volume trading was recorded at different stages of the day on Wednesday, 30 November accompanying the price to $17,100 for the first time since 11 November, the day of the opening of bankruptcy proceedings (Chapter 11) for FTX.
If Sunday night’s weekly close registers above $16,500 the chances of seeing $18k again in the coming weeks increase.
Using the same analysis, the price of ETH demonstrates more bullish intensity by realizing a recovery of more than 20% from the lows touched on 22 November.
Ethereum‘s technical structure continues to indicate harmony in its movements, and the recent cyclical phase has also respected previous indications almost to perfection.
Continuing to follow the development of the uptrend, the next bullish push should maintain the intensity of previous cycles and accompany prices to the $1,330 area in the coming days.
The possibility of a price retracement should not be ruled out after failing to cross the psychological threshold of $1,300 just hours before the November monthly close.
Unlike Bitcoin, from current levels for ETH there is room to maneuver downward as well.
Only a slide below $1,230 would jeopardize the bullish setup built over the past two weeks.