Bitcoin: The leading crypto Bitcoin (BTC) may be on another cliff. Another slump could come for the world’s largest cryptocurrency, a technical analyst says.
- 1 “Bitcoin price free fall to $13,000 is possible”
- 2 The collapse in the crypto market has exposed a lot of problems
- 3 Share this:
“Bitcoin price free fall to $13,000 is possible”
As a final goodbye before a long weekend, we would like to share a little more lively news. But in a bear market this is quite difficult. The world’s largest crypto may be just getting started with its dramatic decline. According to Katie Stockton of Fairlead Strategies, Bitcoin’s negative momentum marks a 27% drop as it tests a key support level. Katie Stockton says:
Bitcoin reacted to short-term oversold indicators last week. It then stabilized and supported a short-term neutral bias within the long-term bearish bias.
AmkNews.comAs you follow on Thursday, Bitcoin slumped below $19,000 with a loss of about 5%. If the coin breaks the $18,300 support level, Stockton says a free fall to 2019 highs of around $13,900 is possible. At press time, the leading crypto was trading at $19,424, up 2.46% on a daily basis. However, Bitcoin has lost 8% in the last 7 days. Also, staying below the $20,000 psychological support dampens hopes for bullishness.
The collapse in the crypto market has exposed a lot of problems
The broader crypto space has been smashed in the wake of Bitcoin’s decline. This, in turn, has led to a series of booms that have fluctuated in the market this year. Recently, hedge fund Three Arrows Capital defaulted on a loan of $670 million consisting of roughly 15,000 Bitcoins and $350 million in stablecoin USDC.
Meanwhile, crypto exchange CoinFlex has this week dealt with a bad debt of $47 million. CoinFlex was the latest in a series of firms to announce that they will stop customers from withdrawing funds. Investor confidence took a hit, causing a wave of debt removal in the industry. Individual investors are shrinking their margin accounts. Also, miners sell Bitcoin after using it as leverage to expand their operations. However, there are some analysts who think that the leverage reduction cycle is nearing its end.
Companies in space have been hit hard. But giants like Sam Bankman-Fried’s FTX see opportunities. According to reports, Bankman-Fried’s crypto exchange is in talks to acquire crypto lender BlockFi. Citing a source, CNBC says that FTX is expected to pay out roughly $25 million, 99 percent below BlockFi’s last private valuation. Meanwhile, it is rumored that FTX is also interested in making a deal with Celsius.
Disclaimer: The articles and articles on AmkNews do not constitute investment advice. AmkNews.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is AmkNews an investment advisor. For this reason, AmkNews and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of AmkNews and quoting by giving a link is subject to the permission of AmkNews. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of AmkNews in violation of intellectual property law and relevant legislation.