The cryptocurrency market is experiencing its biggest tragedy since the Terra (LUNA) event. While analysts were saying, “Bitcoin has bottomed, it’s time to go up,” suddenly the needles turned into disaster. An analyst famous for his successful Bitcoin predictions talks about $10,000 for the leading crypto. Another analyst pronounces $12,000. Meanwhile, other analysts are making similar predictions.
“Bitcoin can find the next support at 10 thousand dollars”
As you follow on Kriptokoin.com, the collapse of FTX has turned the market upside down. The market is literally dying in blood. Naturally, this causes analysts to update their forecasts. Mike McGlone, a leading commodity analyst at Bloomberg Intelligence, says it’s not the worst yet. The analyst shared the following on Twitter:
It’s possible that Bitcoin, crypto crash could trigger macroeconomic dominoes. The collapse of Bitcoin and crypto assets will likely trigger capitulation in most markets under pressure this year.
The analyst states that Bitcoin’s drop below $18,000 and the collapse in altcoins will lead to the capitulation of most of the markets that have been under pressure since the beginning of the year. He notes that this will cause macroeconomic dominoes to fall.
Mike McGlone highlights that the massive reversal of risk assets became clear today as Bitcoin plunged into the $17,600 region. The analyst warns that the fall of FTX is just a shock to the crypto market. However, he says that if this triggers a macroeconomic domino drop, the crypto’s downfall will likely be much more difficult. Therefore, it is possible for Bitcoin to find the next support at $10,000.
Bitcoin’s potential to test $12,000 and $10,000
Bitcoin’s (BTC) hope of exiting the bear market was severely hit by the collapse of FTX. As a result, the leading crypto fell to its lowest level in almost two years as the bulls looked desperate. Accordingly, senior analyst Jim Wyckoff suggests that the bears have a technical advantage that translates into a possible sustained Bitcoin price correction. According to Wyckoff, the FTX crisis generally eroded investor confidence due to a ‘serious liquidity crunch’ in the market. In this context, the analyst makes the following assessment:
The bears quickly gained technical strength to suggest more downside price pressure in the near term. The market is still humming about the turmoil in the crypto markets on Tuesday, which jumped to the safe-haven gold buying and sharply increased the prices of the yellow metal and silver.
Meanwhile, crypto analyst alias AltcoinSherpa suggests that in current market conditions, the next Bitcoin price action will likely mimic historical trends. According to the analyst, it is possible for Bitcoin to drop to $12,000, a level that will create strong resistance. Furthermore, the analyst acknowledges that the $20,000 support has been ‘solidly broken’. In particular, the analyst states that if it reaches the $12,000 level, Bitcoin will likely pull the buying pressure.
Another crypto analyst, Michaël van de Poppe, says that the $10,000 correction is still valid. However, he notes that this will depend on how the market reacts to the crisis. Based on this, the analyst makes the following statement:
Can BTC drop to $10k? Definitely, that’s a likely possibility. Or it is possible to drop to 12-14 thousand dollars. It all depends on how things will develop from here. However, I wouldn’t dare short Bitcoin here. On the contrary, DCA and investment make sense.
Bitcoin technical analysis
The bearish outlook extended to Bitcoin techniques as well. Specifically, a summary of one-day techniques, similar to moving averages at 14. It also marks a ‘strong sell’ at 16. Elsewhere, oscillators ‘sell’ point to 2.
Meanwhile, Bitcoin has lost 7.8% in the last 24 hours, falling to $16,792 as of press time.