The crypto market had a tough run in the latter part of 2022 as Bitcoin underwent a significant price collapse. This also includes controversial issues involving popular exchanges, coins, and tokens.
But despite these issues, some companies kicked off crypto-based projects. And virtual gaming platforms endorse the usage of digital currencies by bettors and gamers, as an example is the real money online crypto.
The market has remained steady lately. There have also been propositions of a general rise during the coming weeks, should there be no negative factors.
According to an analysis on CryptoPotato last Friday, Bitcoin’s price has closed beyond the 50-day moving average on the daily chart. This is a long-awaited move, considering the master coin had been rejected numerous times over the past few weeks.
This breakout appears to have caused a rise toward the $18k resistance point and beyond. As this upward trend continues, there’s a likelihood it will spark bullish price action.
Similarly, a plunge below the 50-day moving average will cause the price to go down toward the 15k support level.
Meanwhile, on the 4-hour chart, there is the possibility of a bearish and pseudo-breakout scenario. This is mainly because the price is yet to go above the $17k resistance level to reinforce the bullish movement.
In addition to that, the RSI indicator showed an apparent bearish deviation cue. And this establishes the probability of a reversal in the short duration. Implying further that a sudden rejection in that price would lead to a drop toward the $15k resistance level.
In the early hours of today, Bitcoin hit a high of $17,389.96 after closing at $17,162.99 on Monday. The consolidation price in today’s chart’s 14-day RSI keeps constant with vital resistance at the 60.0 mark.
As it stands, BTC hovers around the $17k price point. And it shows dramatic signals from a technical point of view. Since traders have swooped in early to secure gains, the digital coin now trades at $17,271.27.
The Effect of the FTX Saga on Bitcoin?
It’s no doubt that Bitcoin’s price has fallen to its lowest in over two years. And due to the recent FTX bankruptcy, some analysts postulated that this could have a widespread effect in the crypto space.
Last week, the world’s biggest crypto traded below $16k before a little bounce back to around $16.5k. Notwithstanding, this is still over 75 percent of the worth a year before.
Over the last year, the crypto market has lost an estimated $2 trillion. And as it stands, experts are still skeptical about what will happen in the coming weeks if the FTX case isn’t finalized.
On the good side of that, however, the bankruptcy hearing is currently ongoing. And it might be months before owed customers are repaid (if at all that could be envisaged). Mind you; the court filings already made it known that FTX owes its top 50 creditors more than $3 billion.
Vladimir Gorbunov, the founder, and CEO at Choise.com told a popular newspaper, “The whole industry is eager to see what approach the bankruptcy attorneys will take. Either reorganization or sale. In order to bring a speedy solution and support to thousands of creditors and the exchange’s investors.
“The entire saga has continued to weigh down the prices of crypto assets. We would continue to experience a tremendous slip-off as the FTX contagion is felt across the board. However, the fall may crest at $14k, after which we might see a positive rebound.”
So far, this is what makes price action so challenging to predict. Similarly, as time goes on, this would lead to the legislative and public scrutiny of exchanges and the entire market in the coming months. In fact, some rulings could demand more transparency in the crypto industry.
The president of the U.S., for example, has hinted to the public in his statement to the White House last week on implementing new rules that will reinforce more substantial regulatory outcomes.