Bitcoin is a leading cryptocurrency, but due to the FTX liquidity crisis, BTC price has broken the strong support of $19K. Now it is trading at $16,001, around the lower range of the Bollinger Bands. Most other technical indicators are bearish, suggesting it will consolidate within a range of $18K and $15K, at least for the next few weeks.
Between June and November, Bitcoin formed a triangle pattern. It was in an uptrend in Jun-Aug. After that, it turned bearish and consolidated within a range of $18K and $21K. It is interesting to note that the BTC price is crucial because it may turn long-term bearish if it breaks this support.
On the other hand, if Bitcoin turns bullish, it may hit a level of $20K, which will be a good short-term gain, but the probability is very less. Currently, the crypto market is volatile and will be more volatile in the next few months. However, is it the right time to invest in BTC for the long term? Read our Bitcoin forecast to know.
After hitting an all-time high of around $68.789, BTC price has been in a downtrend, but it became extremely bearish when it formed a bearish engulfing candle in the first week of November. After that, it formed two bearish candles in the lower Bollinger Bands.
It is also interesting to note that in the last year, the candlesticks have been forming in the lower Bollinger Bands, suggesting a bearish momentum for the long term, and it will continue in the next few months. Experts firmly believe that BTC will test the level of $10K.
If the downtrend continues, the crypto might break the $10K. The FTX liquidity crisis shook the market because the entire crypto world is unregulated. Only market sentiment can influence the current price. The SEC and U.S. Congress are observing the issue, so we can expect more updates regarding FTX that will make the market more volatile in the next few months.
All these issues discourage retail investors from participating in the market. Binance has announced a recovery fund, but it has not been implemented yet. It is true that if Binance did not announce the recovery fund, Bitcoin and other altcoins might observe further outflow in the last few weeks. The current price pattern suggests the market will be volatile, so investors should observe their crypto portfolio very closely.