We are facing a convulsive week with high volatility in world markets, marked by the insolvency of FTX, which was about to be bought by Binance. As a result, bitcoin surged from $21,000 to $15,600, eventually losing support set at $17,500.
In the medium-term horizon, the downward trend continues and if the price confirms a breakout of the $17,000 zone, it tends to look for $13,000 as a first target and possibly $8,000. In this scenario, the fall would represent a variation of approximately 50% of the current price and 88% of the highest historical milestone of the cryptocurrency.
As the asset retains its ownership and purpose, investors see it as a great opportunity to accumulate cryptocurrencies.. As Warren Buffet once said: ‘buy to the sound of cannons and sell to the sound of violins‘.
Chart generated by Trading View
What is the price of bitcoin today?
Last week’s chart with the price of bitcoin:
Bitcoin price is once again in a decisive situation. After a 25% drop, the peer-to-peer digital currency managed to recover 16% of its market value. As a profit-taking consolidation near $17,000 unfolds, investors are forced to make a core question; Is the current BTC price a discount before a stronger countertrend rally or an attractive trap before the downtrend continues?
Bitcoin price is currently trading at $16,718. The 25% decline printed a new yearly low of $15,632. Relative Strength Index shows bullish divergence between the recently established low and the June 18 lows that held support throughout the summer. The volume profile indicator shows that investors they are much more interested in the market now than during the summer.
Considering the RSI divergence and rising volume, Bitcoin is likely to witness an influx of volatility. If the divergence develops, Bitcoin price could challenge the newly established bears near $20,000. A second target could be summer liquidity levels near $23,400.
Still, calling an interim, weekly, or longer timeframe market bottom is always the most dangerous trade. Traders should consider applying healthy risk management techniques to minimize losses while trying to catch the knife.
The invalidation of the bullish idea is a gap by below $15,900. If the level is marked, a break of the new lows is likely, and a further decline towards 2020 liquidity levels in the $14,000 zone It will probably be the next landing ground for Bitcoin. The bearish scenario would result in a 15% drop in current market value.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
- Understanding the cryptocrash: Why are markets down?
- Bitcoin Falls Below $17,000 as Crypto Stocks Plunge in Reaction to FTX Bankruptcy
- Bitcoin Options Data Shows BTC Price Below $17,000 Gives Bears $200M Payout On Friday
- Bitso enables payments in crypto, with QR Code, for foreigners visiting Argentina
- For the director of Bitget, the statements between FTX and Binance are a humiliation for decentralization
- The tenth edition of Labitconf started in Buenos Aires, Argentina
- Top crypto news of the week: Sam Bankman-Fried and the FTX affair, Elon Musk and Twitter, the metaverse, CBDCs, and more
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.
#Current #Bitcoin #Price #Crisis #Opportunity