- Bitcoin price breaks below the psychological hurdle of $16,000.
- BTC is under further selling pressure as Genesis and BlockFi are issuing warnings on funding.
- Expect to see a potential market imploding should another crypto service roll over and trigger another investors’ exodus.
Bitcoin (BTC) price is under pressure as Genesis issued another warning late Monday evening that it is coming up short of funding and has trouble attracting investors to back its services. The digital-asset brokerage could be the next casualty in line after the FTX imposes the trembling of the cryptocurrency space into its core. Crypto lender BlockFi, meanwhile, is struggling to stay afloat and is seeing its cash balance shrink at an excruciating pace.
BTC received its first call for $5,000
Meanwhile, Bitcoin price is seeing eyebrows raised by many analysts and traders in the aftermath of FTX and the dent in the image of cryptocurrencies. Peter Berezin, chief global strategist at BCA Research, wrote a note where he labeled Bitcoin at $5,000 in the coming weeks. In his opinion, the FTX meltdown and events that will continue to unfold in the coming months look like an Enron event rather than a Lehman Brothers event.
BTC price, luckily, is not trading near that $5,000 level at all, although there are signals to be aware of. The break below $16,020, the pivotal level from November 6, 2020, the slip below $16,000 and the break of the monthly S3 are red traffic lights not to be ignored. The road is open for a decline of roughly 22% toward August 18, 2020, nearly $12,536.
BTC/USD daily chart
Two external elements could, however, help ease the pain and pause the current decline that is further increasing losses in this bear market. One element is that the Relative Strength Index (RSI) is too near being oversold and needs to get an unwind soon from sellers reverting to the buy-side to materialize their gains. By doing so, price action would trade back near the monthly S3. Should the US Dollar weaken a bit after its rally since last week, BTC could even pop up6% to test the red descending trend line.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.