With the ongoing Bitcoin price pressure in light of the FTX scandal, the bearish trend is getting stronger. This has implications for many fundamental aspects of the Bitcoin network, especially miners. On the technical side, the November 9 low of $15,682.69 sets the stage for a descending triangle formation.
Will Bitcoin drop further? Pay attention to these 5 charts
With the bankruptcy of FTX, one of the largest cryptocurrency exchanges in the market, Bitcoin experienced a sharp decline. On November 9, it broke below the descending triangle pattern in heavy volume, which is a bearish sign. Interestingly, another pattern is forming, which is typically a continuation pattern with current price movements. If Bitcoin’s pennant formation is disrupted by high volume, further declines will be imminent. The chart provided by analyst Jesse Colombo follows a resistance trendline that has been running since June.
The chart below shows the hourly view of this pattern. On November 9, the Bitcoin price spent a little over 18,000 times before bottoming out below $16,000. On the hourly chart, this region appears as the top of the bearish line.
Bitcoin’s weekly chart points to $10,000 as the next level of support. This zone will become clear if the above triangle pattern is broken. Also, bears need to put pressure on the market for a while. Check out the falling pennant and the historic $10,000 support level:
A similar pattern is also trading on Ethereum
It is forming a similar pennant on Ethereum on the daily chart. The chart below is supported by long-term support below $1,000, similar to Bitcoin.
A closer look at the chart shows that Ethereum price is moving up within the triangle. This price action started with the cooling of the market following the FTX crisis. Most altcoins are gathering strength above critical support levels as the dust of debris is lifted.
Will Bitcoin and Ethereum drop further?
Analyst Jesse Colombo prefers to watch the reaction from the higher volume pennant formation for a while. If this pattern breaks to the downside, it will mark the start of another wave of the crypto bear market. Such a collapse would likely coincide with additional scandals in the crypto world, as well as a serious loss of confidence as investors and traders ditch cryptocurrencies and related investments. Meanwhile, in addition to the falling volume, the decrease in investor confidence in centralized exchanges also supports the decline. As you follow on Kriptokoin.com, the flow from exchanges to cold wallets has reached the highest levels in recent times.
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