Leading crypto Bitcoin (BTC) is having a hard time after the FTX collapse. While some analysts say they’ve seen the bottom, others point to deeper levels. Is Bitcoin heading to the $13,000 range now? Crypto analysts are looking for an answer to this question.
Levels to watch for leading crypto
After Bitcoin broke the key support near the $18,000 level, Morgan Stanley strategists warned that Bitcoin could incur additional losses. Straejists predict that BTC will likely fall to the prices it reached in 2019 and 2020. In a note released Friday, one market analyst wrote:
Technically speaking, BTC has dropped below $18,000, a support area, in recent weeks. The next levels to watch are 2019 highs of $13,500 and 2020 Q3 highs of $12,500.
When it comes to technical analysis, the experts who provided input for this story point out a few key levels that traders should follow, including one that Morgan Stanley mentions. According to independent crypto analyst Armando Aguilar, it is possible for BTC to fall to the price levels set by Morgan Stanley. On this move, it will first encounter significant support at the lows of $16,000 and mid-$15,000.
Is Bitcoin going to $10,000?
Brett Sifling, the investment advisor of Gerber Kawasaki Wealth & Investment Management, also emphasizes the importance of the $12,500 and $13,000 levels. Accordingly, he notes that the 2019 high and the 2020 3rd quarter high will act as a forward support level. It also assesses the case of Bitcoin falling below the aforementioned price points. In this case, he states that the $10,000 level would be a major support level. In this context, Sifling says:
$10,000 is a round number that psychologically attracts investors. However, its importance is not limited to this. It also acted as support before the last big breakout in late 2020.
market outlook
As you follow on Kriptokoin.com, many cryptocurrencies are losing due to the FTX collapse. “The market seems to be pricing in the most predictable defaults/contagion right now,” says Armando Aguilar of the stock market failure. Referring to the November 15 data, the analyst says:
Despite a volatile week, open interest on CME BTC futures rose slightly during the week, according to data from Coinglass. Also, the volume has exceeded $25 billion.
The table below shows this activity:
Volume and open interest for CME Bitcoin futures from June 2020 to November“Despite the sale, investors still show appetite for Bitcoin,” the analyst emphasizes. He also cites payment data for CME Bitcoin futures, which shows that market participants trading these derivatives contracts expect the digital currency to fluctuate between roughly $16,000 and $17,000 through the rest of 2022 and early 2023. The chart below illustrates these expectations.
Trade data for Bitcoin futures contracts traded on the CME
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