Bitcoin was above $20,000 last week, and its ability to stay above this level via the FOMC announcement had fueled speculation that the digital asset was finally hitting its lows. However, recent developments and bitcoin’s drop below $20,000 have proved that this is not the case. Moreover, it points to a further downside in the market that could drag the cryptocurrency to even lower levels.
bottom is not in
Bitcoin is now trading at $19,000 which has completely destroyed the hopes that the bottom was already marked at $20,000. Despite the digital asset largely deviating from established trends, it appears to hold true to the fact that it would eventually lose over 80% of its all-time high value before the next bull rally began. Is.
If so, it is possible that the market will see a lower level below $17,000. Now the question is what would cause such a drop in price and it can easily be traced back to the ongoing battle between Binance and FTX.
The market is already feeling the effects of Binance dumping more than $500 worth of FTTs, which has already caused the coin’s price to drop by over 30%. However, as is often the case in the crypto market, it is not only local to FTT. The impact is being felt on other cryptocurrencies such as bitcoin, which has lost nearly $1,000 in value over the past 24 hours.
BTC price falls below $20,000 | Source: BTCUSD on TradingView.com
Will bitcoin recover?
Bitcoin price recovery is no debate, as recovery is always inevitable after a price drop. However, a significant recovery is not expected from this point, as Bitcoin is yet to reach its lows. And until that happens, it is likely that bitcoin will not break above $22,000.
After the increase in prices last week, there was good selling in the market too. Investors took advantage of this to make some quick short-term gains, but the result was a loss of support at $20,000.
For Bitcoin, it comes down to the current macro climate due to the high correlation. Unless a settlement is reached, it is likely that there will be no significant value pump into the digital asset. Disruptions from the macro environment and ongoing issues with Binance and FTX point to further downside for Bitcoin.
Featured image from Analytics Insight, chart from TradingView.com
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