Bitcoin price could fall below $12,000 as bears gain technical advantage
Bitcoin’s (BTC) push to exit the bear market took a hit after the crypto sector was hit by a high-profile liquidity crisis that affected the FTX exchange. Consequently, the flagship cryptocurrency has corrected almost to a two-year low, with bulls appearing helpless.
In this line, News from Kitco analysts Jim Wyckoff on November 9 suggested that bears have a technical advantage that could translate into a possible sustained Bitcoin price correction.
According to Wyckoff, the FTX crisis has generally weakened investor confidence, noting that the market should expect a “severe liquidity crisis.”
“Bears have quickly gained technical strength to suggest more downside price pressure in the near term. The marketplace is still buzzing about the turmoil in cryptocurrency markets on Tuesday that spilled over into safe-haven buying in gold and sharply increased prices of the yellow metal and silver,” he said.
Bitcoin potential to retest $12,000
In addition, cryptanalyst with the pseudonym AltcoinSherpa in a tweet on November 9, proposed that amid the current market conditions, the next Bitcoin’s price action may mimic historical trends.
According to the expert, the asset could correct to $12,000, a value that would form “strong resistance for Bitcoin”. He also acknowledged that the $20,000 position was “sound broken”.
In particular, the analyst stated in the event that the $12,000 position is achieved, Bitcoin is likely to attract increased buying pressure.
Elsewhere, crypto trading expert Michaël van de Poppe pointed out that correction to $10,000 is still in play, but it will depend on how the market reacts to the crisis.
“Could the markets fall towards $10K for Bitcoin? It’s definitely a likely possibility, or $12-14K as well, depending on how things go from here. I wouldn’t dare start shorting Bitcoin here though. Neither DCA nor invest,” he said.
As reported by Finbold, Bloomberg Intelligence commodity strategist Mike McGlone pointed out that Bitcoin may find a support level at $10,000 while warning that the FTX situation could trigger a “macroeconomic domino.”
Bitcoin Technical Analysis
The bearish outlook has also extended to Bitcoin techniques. In particular, a summary of the one-day technicals points to a “strong sell” at 16, corresponding to the moving average at 14. Elsewhere, oscillators should also “sell” at two.
Meanwhile, Bitcoin continues to trade in freefall to $17,200 at press time, losing 11% in value over the past 24 hours.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
