Bitcoin price dropped by over 22 per cent last week, falling from $20,905 to $15,784 following the collapse of the FTX cryptocurrency exchange, marking the worst week in two years. The drop followed revelations that FTX was in a severe financial crunch and required to be bailed out for it to remain operational.
Unfortunately, by the week’s end, reports had started to come out that there would not be a reprieve for the second largest cryptocurrency, with Binance, which had offered to buy the company, pulling out of the deal. The impact of the pullout by Binance saw further confusion injected into the cryptocurrency markets, which further resulted in a Bitcoin price drop throughout the week.
Fast forward to today, the damage to the cryptocurrency market is expected to be long-term despite today’s trading session showing a bullish trend. For instance, Bitcoin owners have been moving their digital assets from exchanges to their own wallets. Experts are also sounding alarms that Bitcoin may drop and continues setting lower lows for the next few trading sessions. Therefore, regardless of how this week’s trading session is performing, there is still fear by most investors that we might see a further drop in Bitcoin price.
Looking at the chart below, the past few trading sessions have traded horizontally following last week’s aggressive bearish move that resulted in a 22 per cent drop. With Bitcoin’s price currently trading at $17,000, I expect the next few trading sessions to continue trading in a sideways market, with a high chance of resuming the bearish trend.
However, unlike other experts who are doom and gloom about the prospects of Bitcoin price, my long-term prediction expects the prices to climb back to trading above the $20000 price level. There is a high likelihood that, barring another FTX-esque event, the entire cryptocurrency will start recovering, which will see Bitcoin prices continue to rise. However, a drop below the latest price low of o $15,784 will invalidate my analysis. It will also signal a problem and a possible long-term bearish trend.
This post was last modified on Nov 15, 2022, 12:15 GMT 12:15