Investor sentiment in the crypto market is reeling after Binance decided to void its deal with FTX to buy the struggling crypto exchange. The events have pushed Bitcoin to a new yearly low, while other altcoins have also suffered a sharp drop.
Data from Cointelegraph shows that Bitcoin (BTC) declined to $15,698 amid the chaos caused by the possible insolvency of FTX and the failure of the Binance deal. Analysts turn to technical charts to try to find the next price path.
Analyst expects a continuation lower with brief support at $12,000
Independent market analyst CanteringClark said that BTC price could possibly find a short-term bounce off $15,000. Citing a variety of indicators, analysts suggested that Bitcoin could eventually settle around the $12,000 level.
This is as clean of a continuation break as you are going to get, and this time we have a catalyst to really send it.
15k might provide brief support, but the next major area for price to settle seems to be around the 12k handle.
Cheap Bitcoin coming. pic.twitter.com/aDDMJIMRDh
— Clark (@CanteringClark) November 9, 2022
This is as clean a continuation break as you are going to get, and this time we have a catalyst to really send it off.
15,000 could provide brief support, but the next important area for price to settle appears to be around the 12,000 handle.
Cheap Bitcoin is coming.
Will Bitcoin Price Drop Below Key Multi-Year Moving Averages?
Analyst Caleb Franzen explained that the estimated moving average (EMA) is an indicator used to measure the price over a certain period of time. According to Franzen, if the price of Bitcoin continues to fall, it would be the first time in its history that the 52-week EMA and the 104-week EMA crossed below the 156-week EMA.
#bitcoin analysis using annual EMA’s on weekly candles:
52-week EMA = 1 year
104-week EMA = 2 years
156-week EMA = 3 yearsWe’ve never seen the 52 or 104 EMA’s cross below 156 EMA, but we’re getting very close to this cycle.
Is a new first coming for USDBTC? pic.twitter.com/knUwdAnqvb
— Caleb Franzen (@CalebFranzen) November 9, 2022
Bitcoin analysis using yearly EMAs on weekly candles:
52-week EMA = 1 year
104 week EMA = 2 years
EMA of 156 weeks = 3 yearsWe have never seen the 52 or 104 EMAs cross below the 156 EMA, but we are getting very close this cycle.
Is a new scoop coming for USD BTC?
Fear grows and investors sell at a loss
Dave the wave, an independent market analyst, highlights the growing market fear surrounding Bitcoin using the logarithmic growth curve. According to Dave, if Bitcoin’s monthly candle closes below $16,907, Bitcoin’s growth will have been subtracted when using this important long-term metric.
The LGC being tested here.
Let’s see where #btc closes on the monthly candle, which is of most significant for long-term models. pic.twitter.com/nM79cVNhjs
— dave the wave (@davthewave) November 9, 2022
The LGC is being tested here.
Let’s see where BTC closes on the monthly candle, which is most significant for long-term models.
Citing on-chain metric aSOPR, Glassnode’s analysis shows consumers are selling at a 10% loss, something that hasn’t happened since the June 2022 sell-off.
The last 48hrs have seen a series of dramatic events unfold related to FTX and Binance exchanges
In response, we have seen #bitcoin aSOPR drop to 0.9, signaling the average spender was realizing a 10% loss.
This is as severe as June sell-off, when prices first fell to USD 17.5k. pic.twitter.com/p2vmhzEy8Y
— glassnode (@glassnode) November 9, 2022
In the last 48 hours there have been a series of dramatic events related to the FTX and Binance exchanges
In response, we have seen Bitcoin’s aSOPR drop to 0.9, indicating that the average spender was making a 10% loss.
This is as dire as the June sell-off, when prices first fell to $17,500.
Analysts across the market were hopeful that Binance’s bid to acquire FTX would stop the bleeding from the current sell-off and now that the deal has been called off, investors are likely to amplify their risk-off stance.
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