The possibility of further price decline remains
November has been a tough month for the cryptocurrency market, with all major cryptocurrencies suffering from the fallout of the FTX exchange collapse. The prevailing sentiment is that Bitcoin’s price could still fall much further before finding a bottom, and some analysts have speculated that Bitcoin could drop to the $10,000 mark in the coming weeks. For some, this presents unwelcome news, while for others, it may represent a promising buying opportunity.
The negative events surrounding the market have fueled growing uncertainty in the crypto space, causing many investors to pull their assets from exchanges. This past Monday, crypto lending firm BlockFi announced it had filed for Chapter 11 bankruptcy after halting user payouts earlier in the month. BlockFi’s bankruptcy filing revealed it owes $275 million to FTX, making FTX its second-largest creditor. Its largest creditor is Ankura Trust, which it owes $729 million.
Chris Burniske, former Ark Invest crypto lead, stated that bankrupt crypto exchanges would need to liquidate both liquid and illiquid assets to return user deposits. Due to this, market participants should prepare for another potential downward move and take extreme caution to avoid further losses caused by irrational trades and investments.
Regulatory challenges are also limiting Bitcoin’s potential for price growth, with several crypto companies under investigation by US securities regulators. Recently, Binance transferred 127,351 Bitcoins worth $2 billion from its proof-of-reserves to demonstrate control over a wallet. Last week, Binance also pledged an additional $1 billion to its industry recovery fund. Binance CEO Changpeng ‘CZ’ Zhao stated:
“This is part of the Proof-of-Reserve Audit. The auditor requires us to send a specific amount to ourselves to show we control the wallet.”
On this week’s The Market Report show, Cointelegraph resident experts discussed the possibility of Bitcoin (BTC) falling to a price range of $12,000 to $14,000 and analyzed the impact of the BlockFi bankruptcy on the crypto market. According to Cointelegraph experts, the crypto industry urgently needs significant regulatory progress, and until this happens, Bitcoin and other cryptocurrencies will have limited potential for growth.
Technische analyse van Bitcoin
Since November 5, 2022, Bitcoin (BTC) has dropped from $21,473 to $15,479, and the current price is at $16,431. Bitcoin may struggle to maintain a price above the $15,000 level in the coming days, and if it breaks below this level, it could potentially test the $13,000 mark.
The chart below illustrates the trendline, and as long as Bitcoin’s price stays below this line, we cannot consider a trend reversal, and the price of BTC remains in the SELL-ZONE.
Key Support and Resistance Levels for Bitcoin
The chart from May 2022 highlights significant support and resistance levels, which can help traders predict price movements. Bitcoin (BTC) remains under pressure, but if it rises above $18,000, the next resistance targets could be $19,000 or $20,000. A key support level is at $15,000, and if the price falls below this level, it would signal a “SELL” and open the path for a potential decline to $13,000. Should Bitcoin drop below $10,000, which is a critical psychological support level, the next target could be around $8,000.
Factors Supporting a Bitcoin Price Increase
The past few weeks have been exceptionally challenging for the cryptocurrency market, especially with the bankruptcy of the FTX crypto exchange. While the potential for Bitcoin’s price growth is currently limited, if Bitcoin moves above $18,000, the next resistance target could be $19,000 of zelfs $20,000.
Additionally, easing inflation in the US is a positive sign for riskier assets such as stocks and cryptocurrencies. Bitcoin (BTC) and other cryptocurrencies could experience price surges in December if the Federal Reserve signals a potential slowdown in rate hikes.
Indicators Suggesting Further Decline for Bitcoin
Bitcoin (BTC) has fallen more than 20% since the start of November, and traders should be prepared for further potential declines. Fears of a domino effect following the FTX collapse could drag other exchanges down, especially after BlockFi’s announcement that it filed for Chapter 11 bankruptcy.
Inzichten van analisten en experts
Craig Erlam, Senior Market Analyst at Oanda, indicated that the outlook for risk appetite in the near term remains bleak, with the cryptocurrency market continuing to be bearish. Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, suggested that Bitcoin’s price could fall further before reaching the bottom of the current bear market. According to McGlone, Bitcoin could reach levels between $10,000 and $12,000 before eventually recovering and starting a new upward trend.
Disclaimer: Crypto is highly volatile and not suitable for everyone. Never invest money you cannot afford to lose. The information on this site is intended for educational purposes and should not be regarded as financial or investment advice.
