Bitcoin Misery – Will BTC price continue its downward spiral this week?

Over the past two weeks, Bitcoin, the largest cryptocurrency by market cap, has lost more than 22% of its value as it continues to struggle to shake off the effects of FTX Crypto Exchange Implosion.

After briefly regaining the $21K territory, BTC wiped out all its gains from the bullish rally of the crypto market on October 25 and seems to have a hard time climbing to just $17,000.

• Bitcoin is -73% in terms of performance so far this year
• BTC continues to struggle to regain the $17K territory
• The virgin crypto is predicted to achieve new ATH before 2022 ends

According to tracking from Coingeckoat the time of writing, the virgin digital coin is exchanging hands at $16,135 and has been down more than 3% in the last 24 hours.

Bitcoin again colored its charts in red as it dumped almost 16% of its spot trading price in the last 30 days.

Its combined valuation, which at one point this month reached more than $400 billion, is now $310.01 billion.

Bitcoin fails to maintain crucial support area

While the broader crypto market was hit hard by the ripples of the FTX collapse, Bitcoin’s inability to hold its ground and maintain the crucial $18,400-$18,200 support region that has persisted for the past five months, turned out to be the main reason for the asset’s mercury struggle.

Source: TradingView

Sellers were also a big part of this as they took advantage of the negative implications of the FTX drama to break the BTC price to the level it is at right now.

To make matters worse, it looks like the sellers aren’t done yet, as they have the chance to pull Bitcoin all the way down to $12,500, reducing its current trading price by 23.4%.

Should this happen, the market value of BTC will again take a severe hit, dragging the overall valuation of the crypto market to significantly lower levels.

At press time, the crypto market cap is down more than 4% in the last 24 hours, when it stood at $833.30 billion.

BTC may hit a new ATH before 2022 ends

Back on November 10, 2021, Bitcoin pushed its total value to more than $1 trillion when it reached its current all-time high (ATH) value of $69,044.

In its current state, BTC has already lost almost 77% of that value and is nowhere near that level right now.

All hope is not lost on Bitcoin. Image: Finance Magnates.

However, the extension of the bullish divergence in the asset’s weekly Relative Strength Index (RSI) hovering in the oversold region suggests that a rally could happen anytime soon.

Despite the prolonged crypto winter, billionaire venture capitalist Tim Draper is confident that Bitcoin will reach $250,000 in the first half of 2023.

Last week, Draper predicted that the leading cryptocurrency would reach that milestone despite the ongoing FTX turmoil.

Moreover, Colin Wu, a Chinese crypto news reporter recently pointed out that the Bitcoin price has deviated significantly from the predictions of S2F modelpaving the way for an increase up to $78,280 by December 31, 2022.

If that happens, BTC will reach a new all-time high, rewarding its investors and holders with significant profits.

BTC market cap at $309.7 billion on the weekend chart | Featured image from Investor's Business Daily, Chart: TradingView.com