The bankruptcy filing by the crypto exchange giant FTX has created a black hole in the crypto space as the market has lost billions of dollars due to the FTX crash. However, it may mark the birth of a fresh bullish start for the crypto market by Q1 of 2023 as it sets a new goal for leading assets to bounce back to unexpected price levels. As the macro conditions of the traditional market improve, Bitcoin tends to fade its bottom levels by skyrocketing to a bullish territory.
Bitcoin Will Soon Ignore Its Consolidating Area!
The crypto sector, which once promised decentralization and trust to the community and investors, has now become a joke, rife with authoritarianism following the demise of FTX. However, bitcoin continues its legacies and leads the market north as it aims to start an upward rally by next week.
A well-known crypto analyst, Matthew Dixon, the CEO of Evai, predicts that Bitcoin may extend its current consolidation trend for the next few days. According to him, Bitcoin may break its ongoing consolidated price range if it exceeds the price level of $17K.
He further predicted that BTC could form an ascending triangle pattern with two tops between the price range of $17.6K and $17.4K on the price chart. If bitcoin overcomes its resistance at $17.6K by next week, bitcoin could easily drive itself up to $19.5K.
What Lies Ahead For Bitcoin?
The FTX’s downfall is similar to previous bearish events like Mt Gox in 2014, and it may raise concerns about centralization and centralized exchanges. Hence, Bitcoin has a high chance of standing out as it works in a decentralized nature, forcing users to trust self-custodian wallets rather than centralized exchanges.
Looking at the daily price chart, the bitcoin market has reached a short-term consolidation range as BTC price has been hovering around the $16K-$17K range since last week. Bitcoin currently trades at $16.5K after facing rejection at $17K again today.
The RSI-14 indicator has no sign of improvement as it continues to trend in an overselling zone of the 36-level. However, the MACD line seems to change its mood as it starts trading parallelly with the current trend without dropping further below its signal line.
Bitcoin price is currently forming a short term bearish momentum that could test the immediate support at $16,350. If BTC fails to hold its price near $16K, it could soon aim for a breakout below its 23.6% Fibonacci retracement level, dropping to $14.5K.
However, an upward retracement is expected if BTC makes a bullish reversal after testing the $16,350 support level. A breakout above its Bollinger band’s upper limit, which is near the EMA-20 trend line at $17.9K, may spark fresh surges in the price chart, and Bitcoin can next make an attempt to break its strong resistance at $20K.
