Bitcoin (BTC) has weakened more than 20% since the beginning of November, falling from $20681 to a low of $15479. The current Bitcoin (BTC) price stands at $16431, which is more than 75% from its record peak of $69,000 that was achieved last November.
Today, Crypto Lists will discuss Bitcoin (BTC) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk and how much margin you have if trading with leverage.
The risk of further decline is not over
November has been a rough month for the cryptocurrency market, and all major cryptocurrencies have been suffering due to the collapse of the FTX cryptocurrency exchange. The consensus appears that the price of Bitcoin could drop much lower before reaching the bottom of the ongoing bear market, and some analysts said that they would not be surprised to see Bitcoin at the $10,000 level in the weeks ahead. For some this is unpleasant news, for others it presents an exciting buying opportunity.
The outcome of the recent negative events raised more doubts in the crypto space, and as a result, cryptocurrency investors continue to offload their assets from the exchanges. This Monday, Crypto lending firm BlockFi reported that it has filed for Chapter 11 bankruptcy after suspending user payouts at the beginning of this month. BlockFi’s bankruptcy filing indicates it owes $275 million to FTX, making FTX the company’s second-largest creditor. Its largest creditor is Ankura Trust, a corporate trust company to which it owes $729 million.
The former Ark Invest crypto lead, Chris Burniske, said that the crypto exchanges that went bankrupt would have to liquidate any liquid and illiquid assets they have to return users’ deposits. Because of this, market participants should be ready for another potential downward move and be cautious as possible to avoid additional losses caused by irrational trades and investments.
Regulatory pressure is also limiting BTC’s upside currently, and many crypto firms are under investigation by securities regulators in the United States. This week Binance moved 127,351 Bitcoin worth $2 billion from its proof-of-reserves to demonstrate its control over a wallet, and last week, Binance pledged an additional $1 billion towards its industry recovery fund. Binance CEO Changpeng ‘CZ’ Zhao said:
“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 a $12,000–$14,000 Bitcoin (BTC) price and described what the crypto community thinks of the BlockFi bankruptcy. According to Cointelegraph experts, the crypto industry finally needs some serious progress on the regulation front, and until this happens, the upside potential for Bitcoin and other cryptocurrencies will be limited.
Technical analysis for Bitcoin
Bitcoin (BTC) has weakened from $21473 to $15479 since November 05, 2022, and the current price stands at $16431. Bitcoin might have a hard time holding above the $15000 level in the upcoming days, and a break below this level would indicate that BTC could probably test the price level at $13000.
On the chart below, I marked the trendline, and as long the price of Bitcoin is below this trendline, we can’t talk about a trend reversal, and the price of BTC remains in the SELL-ZONE.
Important support & resistance levels for Bitcoin
On this chart (the period from May 2022), I marked important support and resistance levels to help traders understand where the price could move. Bitcoin (BTC) remains under pressure, but if the price advances above $18000, the next target could be $19000 or even resistance that stands at $20000. The important support level is $15000, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $13000. If the price drops below $10000, which represents an important psychological support level, the next target could be located around $8000.
What speaks for the rise in the Bitcoin price
The last several weeks have been extremely taff for the cryptocurrency market, and cryptocurrencies have been suffering as the FTX crypto giant went bankrupt. The upside potential for Bitcoin remains limited for now; still, if the price advances above $18000, the next target could be $19000 or even resistance that stands at $20000.
It is also important to say that the softening inflation in the US is certainly positive news for riskier assets like stocks and cryptocurrencies. Bitcoin (BTC) and other cryptocurrencies could pump in December if the Federal Reserve hints at slowing the pace of rate increases.
What indicates further downfall for Bitcoin?
Bitcoin (BTC) has weakened more than 20% since the beginning of November, and despite this, traders should be ready for another potential downward move. There are fears of a domino effect from the FTX fallout that could drag other exchanges down, especially after Crypto lending firm BlockFi reported this Monday that it has filed for Chapter 11 bankruptcy.
What do analysts and experts say?
Craig Erlam, a Senior Market Analyst at Oanda, said that the outlook for risk appetite in the near term is not looking good, and the cryptocurrency market continues to be bearish. Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence, said that the price of Bitcoin could drop lower before reaching the bottom of the ongoing bear market. According to McGlone, Bitcoin might reach levels around $10,000 to $12,000, and then eventually, at some point, it is going to come out ahead and resume an upward trajectory.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.