The current state of the BTC market is quite concerning for many retail traders. We are living in a very important period of history as the crypto market froze in anticipation of the next big event.
The end of the year should not bring anything new to the table, but the price of Bitcoin should recover a little before the beginning of the next year.
Short-term gains like the one that happened in the beginning of the week are not an improvement. These surges are quickly corrected by the bear trend. However, securing a new support level is possible.
The next week will be quite important
The mood of the crypto community and many investors depends on the situation at Binance. The biggest crypto exchange platform in the world saw a massive increase in withdrawals causing dozens of media outlets to talk about a possible bank run.
However, a bank run is something that happens when an institution cannot handle withdrawal requests. Binance served them easily and managed to stabilize on Wednesday.
A stabilization of the asset flow at Binance is not enough for the market to recover. We are still in shock after the FTX collapse.
Whales are moving their assets to decentralized exchanges and cold wallets creating panic among retail traders. It causes the bear trend to strengthen locally, but it will also not last forever.
If Binance’s internal audit by Mazars proves that the company is solvent and has sufficient liquidity, we will see a slight recovery.
If Binance regains trust, it will be the biggest indicator for many investors that Bitcoin is in a good spot. Thousands will flock back to join the HODL crowd once again. It will allow BTC to break through the $18K resistance level before the next year.
The opposite is also a possibility
The worst-case scenario can happen. We are still in a very distinct bear market that does not show any signs of turning around. However, the beginning of the next year will bring revitalization thanks to developments within Bitcoin Lightning, Cardano, Polygon, and Ethereum.