Bitcoin Price Hits Multi-Year Low at $15.6K, Analysts Expect Further Drops
Investor sentiment in the cryptocurrency market has been rocked after Binance decided to terminate its deal with FTX to acquire the troubled cryptocurrency exchange. The event sent Bitcoin to new year-to-date lows and sent other altcoins sharply lower.
Cointelegraph data shows Bitcoin (BTC) plunged to $15,698 amid turmoil caused by potential FTX bankruptcy and failure of Binance trading. Analysts are looking at technical charts to find the next price path.
Analysts Expect Downside Continuation with Short Support at $12,000
Independent market analyst CanteringClark said BTC’s price could bounce above $15,000 in the short term. Citing various indicators, analysts suggested that Bitcoin could finally settle at the $12,000 level.
This is as clean a break in continuity as you’re going to get, and this time you really have the catalyst to send it.
15k may offer temporary support, but the next major area where prices settle seems to be around 12k handles.
Cheap bitcoins are coming. pic.twitter.com/aDDMJIMRDh
— Clark (@CanteringClark) November 9, 2022
Will Bitcoin Price Fall Below Major Multi-Year Moving Averages?
Analyst Caleb Franzen explained that the Estimated Moving Average (EMA) is an indicator used to measure price over a period of time. According to Franzen, if Bitcoin’s price continues to fall, it will be the first time in its history that his 104-week EMA has fallen below his 156-week EMA if the price continues to fall.
#bitcoin Analysis using annual EMAs with weekly candlesticks:
52-week EMA = 1 year
104-week EMA = 2 years
156-week EMA = 3 yearsThe 52 or 104 EMA has never broken below the 156 EMA, but we are very close to this cycle.
new first appearance $BTC? pic.twitter.com/knUwdAnqvb
— Caleb Franzen (@CalebFranzen) November 9, 2022
read more: Bitcoin Sinks To New Annual Low At $16.8K As FTX Bankruptcy Fears Contagious
Fears are growing, investors are selling at a loss
Independent market analyst Dave the wave uses a logarithmic growth curve to highlight the growing market fear surrounding Bitcoin. According to Dave, if Bitcoin’s monthly candlestick falls below $16,907, Bitcoin’s growth will be undermined using this important long-term indicator.
LGC tested here.
where to look #btc We end with the monthly candle, which is most important for long-term models. pic.twitter.com/nM79cVNhjs
— Dave the Wave (@davthewave) November 9, 2022
Citing aSOPR on-chain metrics, Glassnode analysis shows that consumers are selling at a 10% loss. This has not occurred since the sale in June 2022.
Over the past 48 hours, a series of dramatic events have unfolded involving the FTX and Binance exchanges.
Accordingly, we saw #bitcoin The aSOPR dropped to 0.9, indicating that the average consumer perceives a 10% loss.
This is as severe as the sell-off in June when the price first fell to $17.5k. pic.twitter.com/p2vmhzEy8Y
— Glassnode (@glassnode) November 9, 2022
Analysts across the market expect Binance’s bid to buy FTX to stop the current bleeding of the sale, and investors are likely to step up their risk-off stance now that the deal has been called off.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.
Bitcoin Price Hits Multi-Year Low at $15.6K, Analysts Expect Further Drops
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