Bitcoin, which has lost nearly 10 percent of its value on a daily basis for the first time since the FTX bankruptcy, continues to trade above $26,000 after falling to $25,166. This sharp drop in bitcoin, which found buyers at $29,500 just a few days ago, brings with it the question of where the number one cryptocurrency will move next.
“I wouldn’t be surprised if it tests $20,000”
Speaking to CNBC, Wolfe Research technical analyst Rob Ginsberg said, “Unfortunately, I still find the current situation on the bitcoin charts quite worrying. You never know what momentum will turn, but as we noted in our note earlier this week, the deteriorating trend and momentum are pointing to a significant bearish turn for bitcoin. Bitcoin is currently in oversold conditions and we are close to relief with key support between $24,750 and $25,000. I wouldn’t be surprised if it tests $20,000 before the end of the year after a dead cat bounce.” Commented.
“If the decline continues, the next target will be $19k”
Julius de Kempenaer, technical analyst at StockCharts.com, suggests that if bitcoin continues its decline, the next target would be $19,000, which is the March 2023 low. According to Kempener, $48k, which is the March 2022 high, is likely in a bullish position. “The most likely scenario in the short term is for BTC to hover in the $25,000 to $30,000 range,” Kempenaer said. He said.
“Our short- and medium-term indicators point to a continuation of the downtrend”
Katie Stockton, founder of Fairlead Strategies, pointed to downside targets of $25,200 and $20,600, respectively. “Our short- and medium-term indicators point to a continued downward trend, while long-term indicators continue to improve,” Stockton said. Said.
“Macro Uncertainty Keeps Investors Away”
“Macro uncertainty is high and it is keeping investors away,” Noel Acheson, director of Genesis Trading, told Bloomberg. Also, the liquidity is still weak. As a result, there is not enough trust yet.” phrases used. Acheson further commented:
“Crypto is also likely to suffer if the stock market decline intensifies, as investors will choose to lock profits whenever possible and remain in high-yielding cash until the partnership settles.”
“With every sharp decline this year has come a recovery”
On the other hand, every sharp decline this year has been followed by a recovery, wrote Stéphane Ouellet, CEO of FRNT Financial. “We will have more clues in the next few days about whether the sale will continue,” Ouellet said. Made your comment. Furthermore, he suggested that if bitcoin experiences a decisive break below $25,000 or gains strong momentum above $30,000, it would signal a larger divergence.
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