Bitcoin price prediction has shifted from bearish to bullish as the BTC/USD pair is consolidating in a narrow range of $16,000 to $17,250 as ongoing FUD kept price action limited. The collapse of FTX has sent shockwaves across the cryptocurrency market, fueling worries that a major player is having financial difficulties.
Timeline of FTX's collapse presented at yesterday's hearing pic.twitter.com/fiXSP8sLlv
— Blockworks (@Blockworks_) November 23, 2022
Concerns have been raised about the stability of Digital Currency Group, the parent company of Genesis Investments, Grayscale Investments, and CoinDesk, the latter of which is valued at $10 billion.
Last week, Genesis froze redemptions when it revealed it had $175 million locked in its FTX trading account, making it one of several companies caught up in the collapse of Bahamas-based FTX, one of the world’s largest crypto exchanges.
DCG, parent of Grayscale owes Genesis 1.1 billion and is trying to raise cash that nobody wants to put in.
Also they, themselves are the largest holders of GBTC with 3x the amount of position 2&3.
— FocusedXBT (@FocusedXBT) November 21, 2022
Bloomberg says that over the weekend, Genesis management frantically tried to acquire extra funds from investors in order to deal with a liquidity constraint, stating that the company may have to file for bankruptcy if it does not gain access to at least $1 billion in money.
But as it seeks new funding, Genesis Global Trading has mentioned bankruptcy as a possible option. On November 21, Genesis stated that it “had no plans” to file for bankruptcy and would instead work toward finding a “consensual” solution. The news triggered a drop in BTC/USD to levels not seen in two years.
Bitcoin Price Prediction: FTX Crises Put Downward Pressure
Since most of the dust had settled after the FTX crisis, market participants were taken aback by Bitcoin’s recent fall. Nevertheless, Santiment’s clarification, the pioneering cryptocurrency is still fighting for survival amidst intense selling pressure.
Santiment, an analytics firm, tweeted on November 21 about the falling BTC/USD exchange rate. The research firm claims that the fear, uncertainty, and doubt (FUD) surrounding central exchanges in the wake of the FTX crisis was to blame for the drop to $15,800, the lowest level in two years.
Additionally, the incident may have influenced the recent surge in Bitcoin address activity, which has now reached its highest level in six months.
#Bitcoin dropped below $15.8k for the first time in 2 years, and address activity spiked to its highest level in over 6 months. #FUD due to lack of trust in exchanges historically benefits the patient, as we see $BTC continue moving into self custody. https://t.co/lz5FOkIkRX pic.twitter.com/6PKUA29nDE
— Santiment (@santimentfeed) November 21, 2022
According to Santiment, Bitcoin even surpassed the target over the last weekend. An examination of data uncovered that on November 20th, 1.1 million BTC addresses were being used on a daily basis. It seemed to imply that the cash had been distributed to numerous locations.
— Getblock Magazine World (@getblock_en) November 21, 2022
More importantly, it appeared that many investors made money by moving their holdings away from regulated markets. The reason for this was that the amount of supply available outside of exchanges exceeded the amount of supply entering them. In addition, there has been a gradual drop in the reported influx of currency in recent days.
On November 17 there was a surge of 253,000 per influx. This indicated that investors were still wary about CEXs even though selling pressure was low.
El Salvador’s Bitcoin Adoption “Not Very Sustainable”
Vitalik Buterin, the creator of Ethereum, has once again questioned the support many in the Bitcoin community have shown for El Salvador and its president, Nayib Bukele, saying that Bitcoiners have ignored the fact that Bukele’s administration is “not very democratic.”
Ethereum’s co-founder mentioned:
“many Bitcoin users disregarded the fact that the government in Bukele is not a particularly democratic government, that it has a lot of flaws, and that they are not very good at respecting other individual freedoms.”
El Salvador was the first country to recognize Bitcoin as a legal tender, making it mandatory for merchants to accept the largest cryptocurrency as payment. There was a lot of backlash from the public and local businesses because of this move.
News: Famed Ethereum founder Vitalik Buterin is sceptic about El Salvador's Bitcoin adoption
— Debashis Ghosh (@cryptowithghosh) November 22, 2022
When El Salvador passed its Bitcoin law, the price of Bitcoin had already risen to almost $69,000, during the height of the bitcoin Bull Run. After reaching an all-time high, the cryptocurrency market has now crashed, with Bitcoin losing more than 76% of its value.
Buterin claimed that the Bitcoin adoption model in El Salvador was predicated on the price increase and that now that it has decreased in value, “it looks really dreadful, and not many people are using it.”
Enough about fundamentals; let’s move on to the technical side of the market.
Bitcoin Price Prediction – Is the Next Stop for BTC Below $15k or Above $17k?
Bitcoin is currently trading at $16,574, with a 24-hour trading volume of $33 billion. In the last 24 hours, Bitcoin has risen by more than 5%. With a live market cap of $348 billion, CoinMarketCap presently ranks top. There are 21,000,000 BTC coins in circulation, with a total supply of 21,000,000 BTC coins.
On the technical front, Bitcoin has broken through a bearish trendline at $16,350, and a positive breakout of this would expose the price of BTC to the $17,000 target. Bitcoin generated a bullish engulfing candle on the 4-hour timescale and also breached a descending triangle pattern, indicating the probability of an uptrend continuation.
We may expect the upswing to continue because the RSI and MACD are both in a purchasing zone.
A break of the $17,000 barrier might send BTC to the $17,600 level. On the downside, Bitcoin’s support is still near $16,000, and a break of this level may drop BTC as low as $15,670.
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