Technical Analysis

The Crypto market prepares to take another step down

Crypto Market

moved between $16.3K and $17.0K on Wednesday and is changing hands Thursday
morning closer to the lower bound of yesterday’s range. Some pressure on crypto
comes from more wary financial markets, where major indices are down.

The total
capitalisation of the crypto market has fallen by 1.7% to $830bn in the last 24
hours. However, the overall quieter trading pattern should be noted after the
surge in volatility in recent days.

Crypto Fear
and Greed Index was down 3 points to 20 by Thursday and remains in a state of
“extreme fear”.

On the
technical analysis side, Bitcoin’s failure to cross $17.0K looks like a
corrective rebound to lock in profits before a new round of declines. This
scenario will only become main after the price
approaches local lows near $15.8K, opening the way to $12K.

Ethereum is
under more pressure, forming a sequence of declining intraday extremes. At the
current price near $1200, we can see the dam-breaking effect at levels below

A similar
pattern is seen in the overall cryptocurrency market capitalisation chart,
where we see local reversals from lower levels.

Crypto News

According to
The Wall Street Journal, crypto lending platform BlockFi is preparing to file
for bankruptcy. The company has acknowledged significant exposure to the FTX
exchange. Last week BlockFi suspended customer withdrawals.

The collapse
of FTX affected too many companies, which could extend the crypto winter to the
end of 2023, according to cryptocurrency exchange Coinbase. Many institutional
funds are stuck on FTX, causing increased distrust in the industry. Stablecoins
dominance has reached a new high of 18%.

Bitcoin will
fall heavily in November and hit “the bottom”, forecasts Pantera
Capital’s crypto fund. BTC will then rise to $36,000 ahead of the next halving
in March 2024 and continue to grow to a new record peak of $149,000.

According to
the average results of a survey conducted by BDC Consulting among 53
cryptocurrency executives, bitcoin will stop the decline at $11,479. Meanwhile,
over half of top executives intend to increase their investments in
cryptocurrencies and have no plans to cut back.

This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.

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