The FTX-Alameda drama has sent a bearish shockwave to the entire crypto market, wiping nearly 20% of the total global crypto market capitalisation since FTX’s native token collapse.
Furthermore, the recent withdrawal of the FTX acquisition deal by Binance has created enough turmoil to create massive selling pressure for leading assets like Bitcoin, pushing it below the $17K support level.
Bitcoin Shows Warning Signs Of A Bearish Trend!
The domination of bears has been further triggered amid the current market crash led by FTX’s native token FTT’s collapse.
The global crypto market finds itself under massive selling pressure, forcing bitcoin investors to liquidate their positions to avoid any upcoming sudden loss-making price movements.
Additionally, the crypto exchange inflow saw a surge of over 5000 BTC in the last 24 hours, hinting at a panic situation among investors.
Rekt Capital, a leading crypto analyst firm, Predicted A recent breach of its support level created during the previous crash in June could lead to a further downside move by bitcoin.
According to Rekt Capital, BTC’s recent breakout below its monthly support level of $17,400 could turn into a fresh resistance level in the BTC price chart if it witnesses more dips.
Any rejection from $17.4K would send bitcoin down to the immediate monthly support level of $14,000, slowly moving BTC towards the capitulation zone. Moreover, BTC may follow its historical price correction as it can make a bearish price correction of 84.5% following its 2021 bearish cycle. In that case, the BTC price may make a low of $11K in the upcoming days.
The analyst further explained that the crash of a crypto exchange has historically brought bear cycles for bitcoin, and this bearish trend of BTC following the demise of FTX is no exception.
Rekt Capital mentioned that seller exhaustion is one of the major factors in accelerating the downtrend as it said,
“Capitulation cannot happen at once. When sellers get tired on a strong decline, it doesn’t take many buyers to fuel a strong uptrend. But when the bounce lost steam, sellers returned to pile on the pressure.
BTC Tends To End On A Bearish Note
After slipping to the lows of $15.5K, Bitcoin has been making a slow and steady upward rise following the positive consumer price index (CPI) data released by the U.S. Bureau of Labor Statistics.
Our technical analysis suggests that early 2023 could see further bearish momentum for BTC before skyrocketing.
The RSI-14 is hovering around a range of 34, gearing up to take BTC to the next support level.
The Bollinger Bands are also getting closer as the lower boundary is at $15.8K, which is an immediate support level for Bitcoin.
If BTC price retraces below and trades near $15K, we can anticipate a further bearish trend which can head towards the next support level of $14.1K by the end of December.
The MACD lines are declining vertically, forming a bullish support zone for bitcoin at the 23.6% Fibonacci retracement level from its current price.
However, a bullish comeback for Bitcoin is not happening soon as BTC will likely consolidate in a bearish trend till this year’s end before sparking a fresh surge in 2023.
