Since cryptocurrencies haven’t been trading in the vicinity of their all-time highs for more than a year, Bitcoin, Ethereum, and co. have been in a dry spell.
Stocks and cryptocurrencies both fell in response to the Fed’s tightening of its monetary policies. However, the terra firma collapse, which threatened whole ecosystems in May, particularly hurt cryptocurrency. It was believed that things could not get any worse at that moment.
However, Sam Bankman-Fried, the great saviour who backed difficult ventures with amounts in the triple digits of millions, made a few errors while managing billions. Errors that permanently damaged trust in the cryptocurrency business and brought about the collapse of his own enterprise Some institutional investors were also invested in his multibillion-dollar businesses and now had to write down their interests.
Related: Bitcoin investors lost $10 billion in a week, which is the fourth-worst loss ever.
Even Bitcoin proponents like Mike Novogratz, CEO of Galaxy Digital, have had to lower their hopes for this market’s future.
Novogratz predicted that bitcoin would hit the symbolic $500,000 threshold during the following five years less than six months ago. He remained committed to that price goal, notwithstanding the subsequent fall.
However, FTX has altered everything, and as of right now, he is retracting his prediction. Still, he believes that Bitcoin will eventually reach $500,000, just not in the next five years.
Mark Mobius, the founder of Mobius Capital Partners, predicts difficult days for bitcoin. He believes it’s likely that BTC will test $10,000 in 2023, despite increasing evidence of a potential bottom.
This is due to the fact that owning cryptocurrencies has grown less appealing after FTX’s implosion. Crypto yield ventures that guarantee returns of 5% or more for owning cryptocurrencies become popular during periods of low central bank interest rates. But that ecosystem, which was heavily reliant on FTX, suddenly seems dead, according to Mobius:
“Of course, there have been many companies that have offered 5% or higher interest rates for cryptocurrency deposits, but many of those businesses have failed in part due to FTX.”
People start to fear retaining the cryptocurrency coin in order to earn interest as a result of those mounting losses.
technical price indicators for bitcoin
At a BTC/USD price of $16,953, Bitcoin is currently declining by -0.77%, while the weekly gain is 3.01%.
Due to yesterday’s daily close of just under $16,986, the cryptocurrency failed to confirm the rise above the 23.6% Fibo retracements that began on November 30. In light of the market’s apparent readiness for further losses, a test of the November 21 low at $15,504 is anticipated.
Related: Bitcoin’s (BTC) weekly trend continues with a 24-hour gain.
Tageschart for bitcoin
The 38.2% Fibo retracement of $17,841, the 55-day MA of $18,424, and the 50% Fibo retracement of $18,533 can only be targeted if there is a consistent rise above the 23.6% Fibo retracements.
