The FTX- Alameda Research drama has sent a bearish shockwave to the entire cryptocurrency market, wiping nearly 20 percent of the total worldwide cryptocurrency market capitalisation since FTX’s native crypto token collapse.
Furthermore, the past few withdrawal of FTX’s acquisition deal by Binance Crypto exchange has created enough turmoil to build substantial selling pressure for leading assets like Bitcoin, pushing it below the level of support of $17K.
Bitcoin (BTC) Shows Warning Signs Of A Bearish Trend!
The domination of bears has been further triggered amid the present market tragedy led by FTX’s native crypto token FTT’s collapse.
The worldwide cryptocurrency market keeps itself under substantial selling pressure, forcing Bitcoin (BTC) investors to liquidate their positions to avoid any next sudden losing money price fluctuation.
In addition, the cryptocurrency exchange inflow saw a surge of over 5000 Bitcoin in the previous day, hinting at a panic situation between investors.
A prominent cryptocurrency analyst company, Rekt Financial resources, predicted that Bitcoin (BTC) can potentially retrace more to the downside as it recently broke its level of support, formed for the past collapse in June.
Reports by Rekt Financial resources, Bitcoin’s recent breakout below its monthly level of support of $17,400 could Becomes a fresh resistance level in the Bitcoin price chart if it witnesses more dips.
Furthermore, Bitcoin may follow its historical price correction as it can cause a bearish price correction of 84.5 percent following its 2021 bearish cycle. In that case, the Bitcoin price may cause a low of $11K in the following days.
The analyst further highlighted that the collapse of a cryptocurrency exchange has historically brought bear cycles for Bitcoin, and this bearish tendency of Bitcoin is no exception following FTX’s demise.
Rekt Financial resources mentioned that seller exhaustion is one of the major factors in accelerating the downtrend as it said,
“Capitulation cannot take place in one take. And once sellers are exhausted on a strong move down, it doesn’t take numerous buyers to encourage a strong bounce. On the other hand, when the bounce loses steam, sellers return to pile on the pressure.”
Bitcoin Tends To End On A Bearish Note
After slipping to the bottom Line of $15.5K, Bitcoin (BTC) has been making a slow and steady upward boost following the positive consumer price index (CPI) data released by the United States Bureau of Labor Statistics.
Our technical analysis outlines that there could be further bearish momentum for Bitcoin before skyrocketing by the beginning of 2023.
The RSI-14 is hovering around a range of 34, gearing up to take Bitcoin to the following support level.
The Bollinger bands are likewise getting closer as the lower limit is at $15.8K, an immediate level of support for Bitcoin.
If Bitcoin price retraces below and trades near $15K, we can anticipate a further bearish tendency which can head towards the following level of support of $14.1K by the end of December.
The MACD line is dropping vertically, building a quick support region for Bitcoin (BTC) below 23.6 percent Fib retracement from its current value.
Nonetheless, a positive tendency comeback for Bitcoin (BTC) is not happening soon as Bitcoin will likely consolidate in a bearish tendency till this year’s end before sparking a fresh surge in 2023.