The current downfall, followed by the collapse of FTX’s native token, may be a wake-up call for another crypto crash ahead.
Following the recent news of Binance’s acquisition of its rival crypto exchange FTX, several cryptocurrencies surged in the price chart yesterday but soon ignited a fresh bearish rally after witnessing extreme selling pressure due to panic among investors.
Currently, many cryptocurrencies are making long bearish candles, and the market cap has dropped by 10.85% in the last 24 hours, touching the $900 billion mark.
More Bloodbath For Crypto Market
The sudden market crash has surprised investors by wiping billions of dollars from portfolios at once, fading the hope of an upcoming bull run.
The current downtrend of leading assets has worried investors about their predicted short-term goal by the end of December as Bitcoin has broken its crucial support level at $18K with a downtrend of 11%, and Ethereum dropped below by a whopping 18% in the last 24 hours.
The current negative sentiments have drawn the attention of crypto analysts and strategists in providing the next price movement as a prominent crypto expert, Michael Van De Poppe, who is the founder of Eight Global, predicts that the current bloodbath of the crypto market will extend further depending on news and its impact.
According to him, the recent crypto market crash is impactful enough to plunge Bitcoin’s price below $10K in the upcoming days.
However, there is a high possibility that the BTC price may soon reach a bottom price range of $12K to $14K.
If you are planning to invest in the dip, the analyst suggests investing in small incremental amounts regularly (DCA) rather than shorting positions now.
How Far Bitcoin’s Price Can Plunge?
FTX’s native token, FTT, is solely responsible for causing this massive crypto crash as FTX’s insolvency and buyout created an extreme selling and panic among investorst, leading to massive withdrawals of funds from crypto exchanges to avoid upcoming unexpected price fluctuations. The FTT token is currently down by 72%, with a current value of $4.5.
The daily price chart of BTC is not promising, as it is poised to bring another death dance for the crypto industry after its collapse in May.
According to CoinMarketCap, Bitcoin is currently trading at $17,550 with a market cap of $337.5 billion. Bitcoin has recently touched its support level of $17.5K, which was formed back in June.
The RSI-14 indicator has dramatically dropped from a level of 64 to 30, hinting at a highly volatile market trend downside. The MACD line is also retracing downwards quickly to plunge the BTC price more.
Following the recent acquisition of FTX by Binance, BTC made a fake breakout between a resistance zone of $20.5K to $20.8K.
The next support level for Bitcoin is $16.3K, where the Bollinger band’s lower limit is placed. BTC will likely break its support level in the next few days and trade below the price level of $13K.
However, it can bounce back from this price level as the accumulation rate of BTC is increasing exponentially in the dip, which may push its price above the resistance level of $16K by the end of December.