It has been two weeks since the FTX crash took place but still, the situation is dire for the entire crypto industry. Almost every cryptocurrency and crypto firm seems to be paying the price due to FTX.
The crypto market is currently showing no signs of recovery due to the constant pull from the FTX crash. Almost every day a different cryptocurrency firm once linked with FTX is going down.
Bankruptcies are being filed on an even larger scale than they were filed when the Terra network crash took place.
Even now, analysts have their fingers crossed about the future of cryptocurrencies. There is too much uncertainty in the market that is not allowing investors to support or back any cryptocurrencies.
Bitcoin is suffering from the same
Even the largest cryptocurrency in the entire industry is not exempt from the downfall. It is also suffering from the same demise as other cryptocurrencies in the crypto ecosystem.
Although two weeks have passed since the FTX collapse happened, Bitcoin has not found strong ground. It is still trading at a level lower than $17,622, which is the breakdown level.
Despite rebounding from a lower price, Bitcoin’s hovering below the breakdown level is a negative sign for the BTC community.
As the price of Bitcoin hit a lower trading level, it experienced a boost and the rebound caused BTC to rise up. However, after experiencing high volatility, Bitcoin was not able to cross the $17,190 mark.
For now, Bitcoin seems to be oscillating between the $16,229 and $17,190 levels. This is not a good sign for Bitcoin at all as it needs to break through the level if it wants to rise higher.
Moving Averages Slope Down
The longer the price of Bitcoin remains stuck within the mentioned range, the lower the moving averages fall. The report shows that the 20-day EMA for Bitcoin has already started to decline.
The 20-day EMA for Bitcoin is currently at $17,980, and if Bitcoin does not break past the $17,190, it would continue lowering.
The RSI for Bitcoin is also moving in the negative territory, which again indicates that there is a higher chance of BTC sliding than surging.
If the bulls do not gain confidence and launch a rally to push it over $17,190, then BTC would start plummeting. As the price continues to decline, it would first breach the support level at $16,229.
From there, BTC’s price would keep sliding, falling to a low of $15,588, and then falling all the way down to $12,200.
Pushback from the Bulls
Although the market sentiments do not support Bitcoin if Elon Musk and Michael Saylor’s words give confidence to the bulls, then they can launch a rally.
In that case, the bulls may be able to cross the $17,190 level and then start moving higher. The next target for the bulls would be to cross the 20-day EMA.
If the bulls achieve that, then BTC would continue climbing and may soon cross $18,000.