Price Predictions

Bitcoin Price crashes amid the FTX collapse: Its impact on holders, miners & whales

The crypto markets in recent times have become vulnerable ever since it was shaken to their roots during H1 2022 led by Terra. Meanwhile, the markets attempted to recover, but the analyst continued to believe that the markets to remain under the bearish influence until the end of 2022. As said, the markets dropped again, whipping out enormous gains incurred during the interim recovery phase. 

Bitcoin, to be specific has been adversely impacted as the token has dropped nearly 65% from the yearly high of close to $50K. Even during the recent meltdown, the trading platforms have been witnessing huge withdrawals fearing loss of funds. However, the crypto winter is speculated to prevail for some more time, beyond which a decent upswing may stabilize to rally initially and later ignite a notable bull run. 

Key Takeaways:

  • Bitcoin price dropped by more than 22% after the fall of the FTX exchange which further compelled the majority of the cryptos to shed their gains.
  • With more than $200 billion leaving the crypto space, the possibility of a steep rebound from the bearish trend does not seem likely but may eventually form interim highs.
  • Meanwhile, Bitcoin prices are believed to soar high, uplifting the entire crypto space in the coming months.

How BTC price was impacted by the FTX collapse

The crypto space has been positively resting to the fresh CPI rates after undergoing a minor and short-term pullback. However, the fresh CPI rates have uplifted the BTC price above $21,500, raising beyond the consolidation phase by around $20,000. However, no sooner than Binance announced the liquidation of its FTT holdings, the markets began to dump. 

This was further intensified when the assets held with the FTX exchange were transferred and converted paving way for the speculation of the involvement of an insider. Since then the BTC price is trading under the newly formed resistance at $17,500 and presently failing to surpass the interim resistance at $17,000. Meanwhile, popular altcoins also have undergone a major downfall which may consume more time than required to normalize. 

Read: FTX Collapse Explained

Bitcoin(BTC) Technical Analysis

After the steep bearish drop, the Bitcoin price has rebounded firmly from the lows of around $16,000 a couple of times. This has led to the formation of a double-bottom pattern which is largely considered bullish. The trading volume has dropped notably which may hinder the pace of the BTC price, intending to hit the neckline at $17,514. However, the technicals which are flashing bullish signals in the 4-hr chart may lead the rally towards these levels. 

The RSI has rebounded from the lows and is trading along the lower trend line, while MACD displays mounted buying pressure. Therefore, the BTC price is expected to surge slowly yet steadily and reach the interim resistance at the earliest. 

Read more: BTC Technical Analysis

Bitcoin On-Chain Analysis

  • Bitcoin hash rate had marked a new high, a few days before. Woefully, the hash rate has dropped heavily indicating a drop in the required computing level for verifying & adding transactions to the blockchain. This may make the network less decentralized and prone to 51% attack too. 

BTC Hash Rate | Source: Messari.io

  • The Supply on exchanges has dropped heavily along with the BTC price, which has reached close to $21 billion from the monthly highs of $30 billion before the crash. Therefore, the non-availability of liquidity on the exchanges may impact the price adversely. 

BTC Supply on Exchanges | Source: Messari.io

  • The transaction volume which was marking a recovery from the lows of around $22 billion and reached $67.11 billion has again slashed hard to reach $10.33 billion at the moment. Also, the active address witnessed a slump and a drop in volume signifies the loss of trader’s confidence at the moment.

BTC Transaction Volume | Source: Messari.io

  • As the BTC prices slump hard, the BTC Miner’s revenue also has dropped significantly and bottomed hard to mark levels close to $13 million.

BTC Miner Revenue | Source: Messari.io

Will the BTC Price Reach $17,500 Today?

After the gigantic fall from $21,000, the Bitcoin price has stabilized finely and can ignite a rebound. Meanwhile, the bears are constantly restricting the rally and preventing the price to retest the interim resistance at $17,000. However, the trade setup is in favour of the bulls, who may uplift the price slowly yet steadily, without bearish interference. 

In the next few hours, Bitcoin price is expected to hover within the same range and further rise high to test the crucial resistance. Failing to which the token may remain consolidated under $16,850 for a long time. 

Will the BTC Price Reach $22,500 by November?

The levels around $22,500 have been extremely crucial as the BTC price has failed a couple of times to surpass these levels. The BTC price which is hovering below $17,000 is expected to be consolidated throughout the week which may induce the required momentum to rise beyond the levels. 

In the upcoming weeks, the Bitcoin price is expected to regain the levels at $17,500 initially and later head towards $20,000. Meanwhile, the bears may become extremely active at these levels and hence the price may face yet another rejection. However, the trade set-up in the short-term is bullish but in the long-term, it’s extremely bearish. 

Hence the BTC price may eventually manifest a short-term bounce followed by a significant pullback to close the monthly trade below $19,500.

Bitcoin Price Prediction for 31st December 2022

Ever since the Bitcoin price has slashed hard from the yearly highs of close to $50,000, has been dumping significantly, following a pattern. However, while the price consolidated between $25,000 to $18,500 for more than 5 months, it appeared that the price is preparing for a significant upswing. However, the collapse of the FTX exchange blew off everything. 

The fresh price slash dragged it to the yearly lows of around $15,500. It has been extremely difficult for the token to surpass $17,000 as the volume has slashed below the required levels. However, after a brief consolidation that may drag until the end of November, the December trade is expected to be notably bullish. 

The BTC price may rise high beyond $20,000 in case of a firm upswing or else may remain consolidated around the yearly lows by the end of December 2022. However, the bearish case  appears to be likely considering the current trade set-up. 

Year BTC Price Forecast
2022 $25,156 to $26,678
2023 $33,654 to $38,000
2024 $45,000 to $59,000
2025 $62,000 to $70,000

Read more: Ethereum Price Prediction

Bitcoin News Today

  • Cash App, a popular phone payment processing platform created by Block Inc has added support for the transactions via Bitcoin Lightning Network. With an official announcement, the platform may now allow users to send & receive Bitcoin on the layer-2 protocol.
  • Bitcoin volatility hits new lows as the top investment firm ARK invests reduces its investments in crypto stocks to a large extent, as per the data from the block.
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