The leading crypto Bitcoin (BTC) may be on another cliff. Another slump could come for the world’s largest cryptocurrency, a technical analyst says.
“Bitcoin price free fall to $13,000 is possible”
As a final goodbye before a long weekend, we would like to share a little more lively news. But in a bear market this is quite difficult. The world’s largest crypto may be just getting started with its dramatic decline. According to Katie Stockton of Fairlead Strategies, Bitcoin’s negative momentum marks a 27% drop as it tests a key support level. Katie Stockton says:
Bitcoin reacted to short-term oversold indicators last week. It then stabilized and supported a short-term neutral bias within the long-term bearish bias.
As you follow on Kriptokoin.com, on Thursday, Bitcoin lost about 5% to below $19,000. If the coin breaks the $18,300 support level, Stockton says a free fall to 2019 highs of around $13,900 is possible. At press time, the leading crypto was trading at $19,424, up 2.46% on a daily basis. However, Bitcoin has lost 8% in the last 7 days. Also, staying below the $20,000 psychological support dampens hopes for bullishness.
The collapse in the crypto market has exposed a lot of problems
The broader crypto space has been smashed in the wake of Bitcoin’s decline. This, in turn, has led to a series of booms that have fluctuated in the market this year. Recently, hedge fund Three Arrows Capital defaulted on a loan of $670 million consisting of roughly 15,000 Bitcoins and $350 million in stablecoin USDC.
Meanwhile, crypto exchange CoinFlex has this week dealt with a bad debt of $47 million. CoinFlex was the latest in a series of firms to announce that they will stop customers from withdrawing funds. Investor confidence took a hit, causing a wave of debt removal in the industry. Individual investors are shrinking their margin accounts. Also, miners sell Bitcoin after using it as leverage to expand their operations. However, there are some analysts who think that the leverage reduction cycle is nearing its end.
Companies in space have been hit hard. But giants like Sam Bankman-Fried’s FTX see opportunities. According to reports, Bankman-Fried’s crypto exchange is in talks to acquire crypto lender BlockFi. Citing a source, CNBC says that FTX is expected to pay out roughly $25 million, 99 percent below BlockFi’s last private valuation. Meanwhile, it is rumored that FTX is also interested in making a deal with Celsius.
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