Bitcoin Crash To Get Worse, Analyst Predicts Bottom Levels For BTC
The current downfall, followed by the collapse of FTX’s native token, may be a wake-up call for another crypto crash ahead.
Following the recent news of Binance’s acquisition of its rival crypto exchange FTX, several cryptocurrencies surged in the price chart yesterday but soon ignited a fresh bearish rally after witnessing extreme selling pressure due to panic among investors.
Currently, many cryptocurrencies are making long bearish candles, and the market cap has dropped by 10.85% in the last 24 hours, touching the $900 billion mark.
More Bloodbath For Crypto Market
The sudden market crash has surprised investors by wiping billions of dollars from portfolios at once, fading the hope of an upcoming bull run.
The current downtrend of leading assets has worried investors about their predicted short-term goal by the end of December as Bitcoin has broken its crucial support level at $18K with a downtrend of 11%, and Ethereum dropped below by a whopping 18% in the last 24 hours.
The current negative sentiments have drawn the attention of crypto analysts and strategists in providing the next price movement as a prominent crypto expert, Michael Van De Poppe, who is the founder of Eight Global, predicts that the current bloodbath of the crypto market will extend further depending on news and its impact.
According to him, the recent crypto market crash is impactful enough to plunge Bitcoin’s price below $10K in the upcoming days.
However, there is a high possibility that the BTC price may soon reach a bottom price range of $12K to $14K.
If you are planning to invest in the dip, the analyst suggests investing in small incremental amounts regularly (DCA) rather than shorting positions now.
How Far Bitcoin’s Price Can Plunge?
FTX’s native token, FTT, is solely responsible for causing this massive crypto crash as FTX’s insolvency and buyout created an extreme selling and panic among investorst, leading to massive withdrawals of funds from crypto exchanges to avoid upcoming unexpected price fluctuations. The FTT token is currently down by 72%, with a current value of $4.5.
The daily price chart of BTC is not promising, as it is poised to bring another death dance for the crypto industry after its collapse in May.
According to CoinMarketCap, Bitcoin is currently trading at $17,550 with a market cap of $337.5 billion. Bitcoin has recently touched its support level of $17.5K, which was formed back in June.
The RSI-14 indicator has dramatically dropped from a level of 64 to 30, hinting at a highly volatile market trend downside. The MACD line is also retracing downwards quickly to plunge the BTC price more.
Following the recent acquisition of FTX by Binance, BTC made a fake breakout between a resistance zone of $20.5K to $20.8K.
The next support level for Bitcoin is $16.3K, where the Bollinger band’s lower limit is placed. BTC will likely break its support level in the next few days and trade below the price level of $13K.
However, it can bounce back from this price level as the accumulation rate of BTC is increasing exponentially in the dip, which may push its price above the resistance level of $16K by the end of December.
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Crypto Bear Market Will Get Worse In Coming Days – Predicts Tezos Founder
On Wednesday evening, Bitcoin was largely flat, but Dogecoin and Ethereum saw gains with the total market value of cryptocurrencies being roughly constant at $1 trillion. After a largely lackluster market month, cryptocurrency ended October slightly higher, setting up what may be a busy November. Many cryptocurrency companies began to struggle as a result of falling bitcoin prices as the U.S. The Federal Reserve scaled back its pandemic-era support.
Over 70% of the recent peaks have been lost by large corporations like Bitcoin, Ethereum, and others. The Fed, which is steadfastly working to control inflation, is on track to announce another rate hike.
Cofounder of “Ethereum killer” Tezos Kathleen Breitman predicts that the current bear market cycle in cryptocurrencies will only worsen. Breitman explains that cheap money “inflated” the most recent bull run.
She said that “a lot of easy money was pouring into the system.” The co-founder of Tezos thinks that the value of cryptocurrency enterprises has increased. She cited the fact that despite its sales volume dropping compared to 2021, the top NFT marketplace OpenSea is still valued at an astounding $13.3 billion. “There was a lot of cheap money that went in. Valuations went super sky-high,” Breitman noted.
Bear cycle similar to previous cycle?
The analytics company Glassnode compared the bottom of the current Bitcoin market cycle with those from earlier bear markets in its “week on-chain” report on October 31. A double-top rejection from last week’s relief rally appears to have put an end to it. The market was “hammering out a Bitcoin bottom, with almost textbook similarities to earlier cycle lows,” according to Glassnode.
It stated that, similar to earlier cycles, investors and hodlers have suffered significant financial losses as a result of the bear market in Bitcoin. It went on to say that the only thing left is a component of time and investor indifference.
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The Crypto Bear Market Could Have Been Much Worse – Says FTX CEO Sam Bankman-Fried – Coinpedia – Fintech & Cryptocurreny News Media
After Jerome Powell’s remarks at the Jackson Hole Economic Symposium, the price of bitcoin dropped. The asset’s price dropped by almost 6% over the previous week. Bitcoin increased by 2% the previous day, outpacing volume from the day before, and reaching a high of $20,000. Part of the losses from Monday has been recovered by the largest cryptocurrency by market cap.
Sam Bankman-Fried, chief executive officer of FTX, remarked that in terms of asset prices, the crypto winter might have been considerably worse. The sector, according to the billionaire investor, needs competent regulation, and it makes little difference who does it.
He also discussed the many investments his companies had made in cryptocurrency firms. Bankman-Fried claimed that while some rescue investments were successful, others fell short of expectations.
Things will be in control
Even though Bitcoin’s price once again dropped below $20,000 to start the week, the FTX CEO thinks things won’t get too terrible. According to Bankman-Fried, the Bitcoin price situation could have been worse in an interview with Bloomberg.
According to the investor, he is not concerned about the business collapsing any time soon. He labeled the outcomes of investments totaling $1 billion in a crypto bailout as “mixed.” The CEO emphasized that the funding was provided with the goal of assisting cryptocurrency startups, not profiting from transactions.
The investor said that in order to gain support for the cryptocurrency ecosystem, he is actively lobbying Congress in Washington. He responded that it would not really matter when asked about the lack of clarity regarding which regulatory authority may monitor crypto businesses. The Securities and Exchange Commission or the Commodity Futures Trading Commission could regulate the sector, he continued, and that would be great with him.
“What we’ve tried really hard to do over the last year is get the industry to a place where it is happy to accept sensible regulation. I believe tensions have cooled somewhat between regulators and the digital currency companies.”