Analyst says BTC price will face 20% drop in weeks if Bitcoin avoids key level
Traders warn that Bitcoin is not looking good when it comes to the upside BTC price as GBTC hits a new record low.
At the December 19 Wall Street opening, it held steady below $17,000 as skeptical traders feared further declines.
BTC traders call time on upside potential
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair was virtually unchanged at around $16,700 over the weekend.
The pair saw only partial volatility at the open as US stocks fell slightly. At the time of this writing, the S&P 500 and the Nasdaq Composite Index fell 0.5% and 1%, respectively.
For Bitcoin traders, there was little to celebrate with the consensus built around the potential to test lower levels in the next step.
“As long as it stays below $19k, it shows a bearish trend,” Crypto Poseidon said alongside a chart.
Popular trader and analyst Rekt Capital highlighted $17,150 as an important level that needs to be regained to avoid further declines later.
By uploading a one-month chart of BTC/USD, “If BTC continues to drop from ~$17150 resistance… Then the price could drop as low as -20% in the coming weeks.”
Rekt Capital added that “there is still time for BTC to close Monthly Close above ~$17150 later this month” but “a Monthly Close below ~$17150 will confirm the start of a breakout”.
Meanwhile, Michaël van de Poppe, founder and CEO of trading company Eight, offered a slightly more hopeful outlook.
Expecting more US economic data towards the end of the week, the BTC/USD pair had the potential to break out and then target $17,300 to offer “short opportunities”.
“No breakthrough, then you are looking for long positions around $16.2k or $15.5k,” he replied.
Grayscale CEO: FTX was “people’s failure”
The news is that Binance.US, the US branch of crypto exchange Binance, has offered to buy the assets of troubled lender Voyager, but this has had no tangible impact on market performance.
Related: “low wave” for all markets? 5 things to know about Bitcoin this week
The announcement, the latest in the FTX saga, comes as Binance continues to grapple with what Binance CEO Changpeng Zhao calls “FUD” over the weekend.
Meanwhile, in a letter to investors, Michael Sonnenshein, CEO of investment firm Grayscale, sought to make a clear distinction between FTX and crypto as a whole. Grayscale’s parent company, Digital Currency Group (DCG), was previously caught in the FTX post.
“FTX Was a Public Failure, Not Crypto’s Failure: Too many investors were injured. “From crypto to traditional finance to mainstream media and D.C., few seem to have escaped deception through false narratives and forged documents.”
“However, we should not combine the actions of a few individuals and organizations with the underlying blockchain technology of Bitcoin or Ethereum, or smart contracts and decentralized finance applications.”
Grayscale’s flagship product, Grayscale Bitcoin Trust (GBTC), traded at a 48.7% discount from Bitcoin spot price as of December 17 – the highest discount ever, according to data from Coinlas
The views, opinions, and views expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Are cryptocurrencies taking off?
This movement in Bitcoin, which saw over $ 18 thousand after a long break, became a ray of hope for the new year. Bitcoin needs to be watched above $ 17,500 in order to continue the upward hope after 2022, when big losses are experienced.
For crypto investors, 2022 has been a year they won’t want to remember.
With constant negative developments, prices collapsed completely. The collapse that started while talking about 100 thousand dollars in Bitcoin, which tested the levels of 69 thousand dollars in November last year, lasted up to 15 thousand 500 dollars. In other words, there is a 77.5 percent loss compared to the peak.
According to the news of Ufuk Korcan from Ekonomim.com, this storm in Bitcoin, the flagship of crypto, was also reflected in altcoins as a deluge. Many coins have dropped 95-99% below their historic highs. In other words, a person who saw that there was $ 1000 in his crypto money account 1 year ago, writes an amount such as $ 10-50 on his screen today.
DIRECTED THE FED’S DECISIONS
In this process, the main factor determining the trend was the interest rate hikes by the US Federal Reserve (Fed) to restrain high inflation and curbing monetary expansion. How about what is going on in the crypto market itself? Crypto assets were hit hard by the collapse of Luna, one of the ‘top 10’ coins, from $200 levels to very zero cents, followed by the sinking of funds like Celsius. As if these were not enough, the bankruptcy of FTX, one of the largest crypto exchanges in the world, which is called ‘what if’, also struck the final blow. The collapse of FTX reminded one of the largest investment banks, Lehman Brothers, which went bankrupt during the 2008 global economic crisis. Dubbed ‘too big to fail’, Lehman has shaken confidence in the system, just like FTX.
ARE THERE NEW PONZIES?
The collapse of the FTX stock market reminded me of the Madoff incident in 2008. Bernie Madoff, a former stockbroker and investment consultant, made a full $65 billion profiteering with the ponzi, the pyramid scheme he founded. A ‘Ponditial Chain’ is a fraud method where people who are included in the system are paid with their own investments or money from subsequent participants. When many investors want to withdraw their money at the same time, the system crashes and leaves many victims behind. Today, crypto exchanges, where there is no control and the status of their financial structures are not known, also raises questions in the minds. Bailey, Governor of the Bank of England, recently made the statement that “regulation is needed even if the crisis in cryptocurrencies passes”. Although there have been statements about the regulations for a long time, it has never been implemented. However, in general, a regulation that includes all actors in the crypto market is actually the best option for investors.
ATTENTION TO THIS LEVEL IN ETHEREUM!
Ethereum managed to stay above the uptrend it started on the week of March 9, 2020 on the weekly chart. However, the pressure of the downtrend that started in the week of November 8, 2021 is still felt. Therefore, in order to talk about an upward movement in this parity, we should definitely not go above this trend line. Next week, the resistance point of this trend coincides with the $1376 level. In addition, the $1350 level, which acts as a resistance in the recent rises, is also extremely important in terms of being a horizontal resistance point. In case of possible pullbacks, the main trend support point for this week is $1194. While the trading volume is still not supportive, the indicators are mostly positive.
The Name Who Knows FTX Crash: These Bitcoin Exchanges May Also Go Down!
Siemer noted that more stock market crashes will cause more pressure from regulators. He noted that regulators will focus more on the crypto industry. Also, according to Siemer, the world’s largest crypto exchange Binance is not on the “danger list.” As is known, some market participants speculated about the health of the stock market. Last week, the stock market pulled back significantly. But “They’re the world’s largest exchange,” Siemer said in the phone call. He also used the following expressions:
Binance has no chance of losing money as FTX loses most of the money. They don’t bet. There are no hedge funds affiliated with them.