Leaked document hints at FTX’s true earnings; plus our weekly BTC and ETH analysis
- Ftx CEO Confirms Exchange’s Revenue Grew More Than $1 Billion in 2021
- Bitcoin/USD – Broken Loses Channel & 200 Week MA
- Ethereum/USD – Deviation Over the Weekly Level
Ftx CEO Confirms Exchange’s Revenue Grew More Than $1 Billion in 2021
Through a leaked document, it was reported that crypto exchange FTX had brought in revenues greater than $1 billion dollars in 2021 from just $89 million in 2020. The exchange’s operating income was up from $14 million in 2020 to a whopping $272 million last year. FTX’s net income reached up to $388 million in 2021 after only seeing $17 million in 2020. The report claims that more than half of the revenue stemmed from futures trading fees, while around 16% came from spot trading. The report also claims that the exchange held $2.5 billion in cash at the end of 2021 with a profit margin of 27%. After the document was leaked, Sam – Bankman Fried took to his personal twitter account to confirm that it was correct stating, “Fwiw numbers here are correct ballpark.”
Bitcoin/USD – Broken Loses Channel & 200 Week MA
BTC Daily Chart
BTC Weekly Chart
At the time of writing, one bitcoin is equivalent to roughly $23.1k and since last week, has broken the parallel channel (highlighted in orange) that it traded in for about 9 weeks. Price has also given a weekly close back below the weekly 200MA which was a key level that bulls needed to hold. Since both the channel and the very important weekly level have been invalidated, I believe there will be more downside to be seen for Bitcoin. It is important to note that the 2017 ATH level is still below current price and may act as short term support before a move lower.
Bitcoin Bull Scenario
Bitcoin reclaims the 200MA weekly level on a weekly candle closing basis and attempts to trade back at the $25k level again.
Bitcoin Bear Scenario
Bitcoin loses the 2017 ATH level and I believe prices will go to at least the lows made in June of this year if not lower.
Ethereum/USD – Deviation Over the Weekly Level
ETH Daily Chart
ETH Weekly Chart
At the time of writing, Ethereum is priced at $1605, and the most recent weekly candle has closed back under the important $1.8k level. Just below ETH’s current price lies two significant levels which include the 2017 ATH and the weekly 200MA level. Unlike bitcoin, ethereum is still above its weekly 200MA and has not yet retested this level. I would expect this level to give some sort of reaction if price is to go lower, although I am not sure of how long it would act as support in the event that price goes lower.
Ethereum Bull Scenario
Ethereum reclaiming the $1.8k level on a weekly closing basis would give evidence of strength from bulls.
Ethereum Bear Scenario
Ethereum losing the 2017 ATH level and/or the weekly 200MA would be very bearish in my opinion and I would start aiming for some of the lower weekly and monthly candle structures as support.