There was no way the bitcoin price could have begun a recovery surge above the support zone that was placed at around $22,250.
The bears were busy on the Bitcoin market, sending the currency’s value down to a new low below the $22,000 support area. This was the result of the bears engaging in their behavior.
Cryptocurrency Price Analysis: Falling
As a result, the market was open to even worse losses, and the price eventually settled at a level lower than $21,800.
Price action is currently consolidating losses in the direction of the bottom, which was discovered to be in the region of $21,600. That spot marks the spot of the most recent monthly low.
The price of a single bitcoin was trading at a level that was less than $22,000 at the time this article was being written. The 100 hourly simple exponential moving average was also below that level.
There is a possibility that the region close to the $21,840 level will act as an instant point of resistance. The price fall between the swing high of $22,600 and the low of $21,600 is near the 23.6% Fib retracement level.
The price decline occurred between the swing high of $22,600 and the low of $21,600. The neighborhood of the $22,000 zone is likely to be the location of subsequent significant challenge that has to be overcome.
The hourly chart for Bitcoin/US Dollar shows the formation of a huge negative trend line with resistance near $22,050.
The graphic demonstrates this particular trend line. The trend line is close to the 50% Fib departure level of the slide from $22,600 to $21,600. The beginning of this price drop was when it was $22,600.
This price drop started when it was at $22,600 and continued down to where it finished, which was at $21,600.
The $22,250 zone is expected to be close to the largest concentration of opposition at this time. If the price can close at a level that is higher than the resistance level of $22,250.
There is a significant chance that it will proceed to advance into the resistance zone at $22,600. This is because a closing price that is higher than the resistance level of $22,250 is considered to be bullish.
If it breaks above $23,000, the next significant resistance level, the price may gain momentum.
If Bitcoin fails to break through the $22,000 support level and trend line, it will likely start a new steady drop. In the near term, the market is likely to find a haven around the $21,600 price point.
The price is likely to fall below $21,000 if it breaks through the second key support around $21,200. Market players will find the next big support at $20,500 when they search for it.
If losses continue, the market may trade closer to $20,000 and become more volatile.
It’s No Longer a $1 Trillion Industry
Due to a spectacular chain of events, the cryptocurrency market value decreased to $870 billion.
The sell-off was attributed to FTX’s liquidity issues. The industry’s recent fall is because of The Bahamas’ too-huge, too-crash exchange.
Silvergate Cryptocurrency Liquidation
Silvergate believes that voluntary bank liquidation is the “best route ahead” given recent legislative and industry developments. As a result of FTX’s demise, market volatility in cryptocurrencies has increased.
The US Justice Dept. is investigating Silvergate, which the company disclosed. The bank further stated that all deposits will be refunded upon wind-down and liquidation.
Investors rushed to withdraw nearly $8 billion in deposits from Silvergate in the 4th quarter of 2022. It is causing the company to sell assets at a loss of $1 billion.
Several of Silvergate’s business partners have ended relationships this week, including cryptocurrency-focused financial services provider Galaxy Digital and cryptocurrency exchange Coinbase.
FTX’s trading arm, Alameda Research also held an account with Silvergate.