Bitcoin price hits multi-year low of $15.6K, analysts expect further downside

Investor sentiment in the crypto market is rumbling after Binance decided to scrap its deal with FTX to buy the distressed cryptocurrency exchange. The events have sent Bitcoin to a new annual low, while other altcoins have also taken a sharp decline.

Data from Cointelegraph shows Bitcoin (BTC) falling to $15,698 amid the chaos caused by FTX’s potential insolvency and the failure of the Binance deal. Analysts turn to technical charts to try to find the next price path.

Analyst expects continued downside with short support at $12K

Independent market analyst, CanteringClark said that the BTC price could possibly find a short-term bounce of $15,000. Citing a selection of indicators, the analysts suggested that Bitcoin could eventually settle around the $12,000 level.

This is as clean a continuation break as you’re going to get, and this time we have a catalyst to really send it off.

15k may provide short support, but the next major area for price to decide appears to be around the 12k handle.

Cheap Bitcoin is coming. pic.twitter.com/aDDMJIMRDh

— Clark (@CanteringClark) 9 November 2022

Will Bitcoin Price Fall Below Key Multi-Year Moving Averages?

Analyst Caleb Franzen explained that the Estimated Moving Average (EMA) is an indicator used to measure price over a certain period of time. According to Franzen, if the Bitcoin price continues to fall, it will be the first time in history that the 52-week and 104-week EMAs crossed below the 156-week EMA.

#Bitcoin analysis using annual EMAs on weekly candles:

52 week EMA = 1 year
104 week EMA = 2 years
156 week EMA = 3 years

We have never seen the 52 or 104 EMAs cross below the 156 EMA, but we are approaching this cycle.

Is a new first come for $BTC? pic.twitter.com/knUwdAnqvb

— Caleb Franzen (@CalebFranzen) 9 November 2022

Read more: Bitcoin sinks to new yearly low of $16.8k as FTX insolvency fears become contagion.

Fear grows and investors sell at a loss

Dave the wave, an independent market analyst, highlights the growing market fear surrounding Bitcoin using the logarithmic growth curve. According to Dave, if the monthly Bitcoin monthly candle closes below $16,907, Bitcoin’s growth will have weakened using this important long-term metric.

LGC is being tested here.

Let’s see where #btc turns off the monthly light, which is the most important thing for long-term models. pic.twitter.com/nM79cVNhjs

— dave the wave (@davthewave) 9 November 2022

Referring to the aSOPR on-chain metric, Glassnode analysis shows that users are selling at a 10% loss, which has not happened since the June 2022 sale.

The past 48 hours have seen a number of dramatic events unfold related to FTX and Binance exchanges

In response, we have seen #Bitcoin aSOPR drops to 0.9, signaling that the average user achieved a 10% loss.

This is as severe as the sell-off in June, when prices first fell to $17.5k. pic.twitter.com/p2vmhzEy8Y

— glassnode (@glassnode) 9 November 2022

Analysts across the market were hopeful that Binance’s bid to buy FTX would stop the bleeding of the current selloff, and now that the deal has closed, investors are likely to reinforce their risk-off stance.