Bitcoin Steep Down; Hanging on the Edges After FTX Deal

The minimum gains in crypto assets were offset by rumors that Binance had withdrawn from the FTX agreement. On Wednesday, Bitcoin fell below $16,000 for the first time in two years and was recently trading 3% higher at $16,752, while Ether was up 6.3% at $1,169.

Bitcoin spent most of October at $19,000 but only reclaimed $20,000 after the month. It was kept stable until the FTX-Binance controversy began, which eventually threw crypto speculators into a frenzy. Aside from the current crisis, macroeconomic headwinds have weighed on Bitcoin and the crypto market all year, with bitcoin losing more than 70% of its value from its all-time high in November.

Breaking all the supports, Bitcoin fell below the 1.618 Fib region. A slight uptrend could be seen as the price decreases and investors move in. Since Nov 6, the red candles dominated the chart resulting in a bitcoin crash. 

Firstly, the price fell below the $20K mark, breaking all the supports. Any further breakdown could lead BTC to plunge to $12000 value.

If we zoom out of the chart, we can clearly see a parallel price propagates sideways. 

The weekly chart shows the "Channel down" pattern, which means there's a high chance of Bitcoin soon getting a surge in price.

Either way, if the bitcoin price goes below the $12000 mark, it will cause the market to crash (As bitcoin directly affects the whole crypto market). Further, it will take much time for the crypto market to regain confidence and the investors to retreat to the space.

But only some news is good. The volume against BTC price has surged tremendously in the past three days. It signifies that investors are again entering the market to make profits. These are short-term traders who came in to marginalize profits.

However, the transaction volume has been declining since the last month. It last experienced a positive uptrend on Sep 6 after which it sharply fell nearly 215%. 

Santiment data shows that there is a constant FUD among investors. Hashtags related to "Crash" reached above the usual tendency in social media, which indicates a significant rise in the fear index.

RELATED: Crypto Market will Soon Normalise Despite the Recent Clashes

Bitcoin reached its first high in 2021 when it surpassed $60,000 in April, and the price fluctuation since then has highlighted the cryptocurrency's volatility at a time when more and more individuals are looking to get in on the action. Bitcoin fluctuated significantly from a low point in July that dropped it below $30,000 and its most recent high point in November. According to experts, the future of cryptocurrencies will almost certainly contain increased volatility.