Crypto-Upvotes experts explained reason of the last fall of BTC price. And told how it can change in coming days
Last week from November 21 to 27, BTC updated its yearly low. High volatility on crypto market was observed at the beginning of this week. Bitcoin sales intensified on news of the possible bankruptcy of Genesis. Which had $175 million hanging in the collapsed FXT exchange. The BTC/USDt pair was down to $15,400.
BTC price did not go lower. The sales were stopped by a representative of Genesis. He said that company continues to negotiate with creditors and does not plan to declare bankruptcy in the near future. The Wall Street Journal reported that billionaire Justin Sun is considering options for the acquisition of certain FTX assets. This news backdrop formed a nice session bullish trend on the intraday charts. Also, the cryptocurrency market received support from the weakening U.S. dollar in forex. As well as the growth of stock indices in the U.S. before the release of the minutes of the U.S. Federal Reserve meeting on November 1-2. Bitcoin rose 8.6% to $16,800 in 53 hours.
Buyer activity was halted by news that Genesis had hired a restructuring consultant to explore all options, including bankruptcy.
On Thursday low activity on all world exchanges can be explained by day off in the USA. Markets in the States did not work because of the national Thanksgiving holiday. On Friday, trading was at the level of $16.5 thousand.
As long as there is no negative news, Bitcoin is trying to climb out of the hole Sam Bankman-Fried sent it into. Fear of a possible collapse is keeping investors from active action. Buyers need to pass $17.15k and $18.5k for the FTX exchange collapse to recede into the background.
No factors for BTC growth
After shocks associated with the collapse of FTX, the crypto market is frozen, waiting for new factors for movement. Most likely, there will be no strong changes. Bitcoin now trades at $16.2k, the same dynamics is expected in the next (range $16-16.5k). In the absence of negative news, of course, because there is no positive news to expect.
Level of $18.5k is the key resistance level. Its overcoming will open the way for buyers to $22.5k. Also it will allow many miners to accumulate BTC and not to sell at low prices. Sellers are still set to bring the market down to the $10-12k zone.
The most important event this week is the report on the US labor market in November. As the cryptocurrency market has decoupled from the S&P500. Then it can ignore the price swings of the dollar and the S&P500 after the report is published. If Bitcoin reacts to U.S. statistics. Then again we can look at correlation and stronger correlation with other risky assets.
There will likely be more reports of problems in the crypto industry this week. Even if not as significant and large as with FTX. For example, it is now known that the ecosystem of decentralized finance and stable dUSD coin Ardana. Which is based on the blockchain Cardano, has announced the suspension of project development. Because there is now uncertainty about the funding and timing of this project.
The next negative report is that cryptocurrency lender Matrixport is looking for $100 million in funding. Lead investors have already committed $50 million to the company, but the deal has not yet been finalized. As Matrixport needs to find those who will close the other half of volume.
There are no factors for growth of digital financial assets. Main thing is that there are no new ” Black Swans ” – poorly predictable negative events. In this case, Bitcoin will remain at the level of about $16.5k. However, if there are new reports about difficulties on cryptocurrencies, it can fall to $14-15k.