Due to the ongoing FUD in the crypto market, BTC has lost over 10% of its value, and it’s currently hanging on the $15,000 support level.
Technical indicators show BTC could hit $10,000 before the end of 2022.
Last week, we saw a huge decline in the prices of crypto assets due to the crash of a major crypto exchange, FTX.
Due to the FUD in the crypto market, BTC has lost over 10% of its value within the past 7 days alongside altcoins.
FTT token lost over 65% of its value within 7 days which has made investors start pulling out their assets from various crypto exchanges.
Recently, $3.18 billion has been withdrawn from the crypto market as investors are scared of investing in cryptocurrencies.
This has led users to ask if this is going to be the end of cryptocurrency.
As of the time of writing this article, BTC is being traded at $16,100.
This is the lowest price it has been since November 2020.
Is there any sign of recovery for BTC?
Technical analysis shows BTC resting on a little support zone around $15,000 as the RSI indicator is below 30 and still going lower.
The volume indicator shows the amount of trading volume has dropped drastically as traders are also afraid to trade prices and are just showing signs of indecisiveness.
This means the market has been ranging no between $15,000-$16,800 for the past 3 days with no clear direction of where the price is heading. In other words, crypto traders are scared.
But big whales and investors are still enthusiastic about Bitcoin being the future of the internet, as CZ, CEO of Binance, tweeted.
The tweet gave traders hope and relief, while some prayed for a bullish move to push the price back up a little bit.
BTC price analysis
As seen in the 4-hour time frame the current price of BTC is $16,840 as it rests on a minimal support level of $15,000.
as it rests on a minimal support level of $15,000.
BTC could lose its current support zone because it has been making the same lows, which are called liquidity.
Price wants to get rid of the liquidity that’s below it and trade up to the high of the previous day before finding another support. We
However, if this should happen we might see BTC drop to $10,000
Top down analysis
Analyzing the monthly time frame, one can see an order block after a break in market structure at the $10,000 region.
Using SMC trading terms, the price is expected to reach the $10,000 region to fill up the order block before rallying back up.
Conclusion
The basic psychological evaluation led us to believe the reason why the price of crypto keeps crashing lower and lower is that market makers and crypto whales are looking to push BTC to its lowest price so they can buy more at a very cheap price.
Their primary aim might be to push the price down to $10,000 so they can bag a lot of bitcoins at a cheaper price, so when the price of BTC hits $40k again in the future, they’ll have an ROI of over 300%.
