$17,000 threshold Bitcoin has been conquering for last few weeks has fallen, unfortunately
The $17,000 price threshold Bitcoin has been working with for the last week has fallen, and the price of the digital gold tumbled back to the $16,000 zone, with a potential to return to the local bottom. Here are the most likely scenarios we may see in case of an unsuccessful recovery.
New trading range
The prolonged downturn does not end with an immediate recovery and massive price spikes. After consistent downward movement for numerous months, Bitcoin or other assets would enter an accumulation range in which investors will be able to grab relatively cheap coins and form a foundation for a new rally.
The $15,000-$18,000 price range might become a consolidation and accumulation array in which Bitcoin might gain some power and stability ahead of the reversal rally.
A scenario in which Bitcoin drops even further is also possible, despite the gradually decreasing selling pressure on the market. In the past two months, Bitcoin volatility has been moving downwards as open interest on crypto derivatives trading platforms has been falling.
In addition to the liquidation of most futures and options positions, traders and investors have been moving funds away from centralized exchanges in order to safeguard their funds from the FTX 2.0 situation.
At press time, the $15,566 price threshold acts as a solid support level that should not get broken as most of the short- and midterm wallets that corresponded for the most part to the selling pressure on the market have drained their wallets and are unlikely to put any more stress on BTC.
As for now, Bitcoin is trading at the $16,800 price level and losing 1.6% of its value in the last 24 hours.