This week, the bitcoin cryptocurrency managed to get out of the 5-month flat and resume the downward trend. The pair has confidently overcome the $18,500 level, trading steadily below it for several days. There has yet to be a single attempt to reach above this level. At this time, the rate is $16,500. As you can see, even at such "very low" values, none of the investors are in a hurry to buy. Everyone is waiting for an even bigger fall, especially since now there are real reasons and grounds for this.
In previous articles, we have discussed the bankruptcy of one of the largest crypto exchanges in the FTX world. Without going into details, its head turned out to be a good fraudster and gave out more than half of the investor's money as loans. Auditors of the Binance cryptocurrency exchange, which could and wanted to save FTX, found "holes" in the reporting for billions of dollars. That is why no "rescue" happened. Changpeng Zhao refused the deal. Naturally, when the liquidity problems started, everyone who could still do it immediately started withdrawing money from FTX. And what does it mean to withdraw money from the exchange? This means selling cryptocurrencies and withdrawing dollars. The supply of bitcoin has grown dramatically, bringing down its rate and the rates of many other cryptocurrencies. Experts are sure this is not the "bottom" of the market yet, and the consequences of FTX bankruptcy can be observed within a few weeks. Therefore, we are even more confident now that the cryptocurrency will continue to fall, with a target of $12,426.
Yesterday, we already said that the longer bitcoin is traded even below its own cost, the higher the probability of its further decline. Bitcoin is not oil, which a couple of years ago fell in price to 0. The world cannot do without oil, but without bitcoin, it may well. Therefore, if the price of "bitcoin" is lower than the cost, many miners will curtail their activities until better times. Many investors will continue to get rid of cryptocurrency, which is only falling in price. And new investors will not come to the cryptocurrency market because why buy an asset that is getting cheaper? Of course, sooner or later, bitcoin will "find the bottom," but this may well happen below the $10,000 level.
On the 24-hour timeframe, the quotes for "bitcoin" finally attempted to overcome the level of $18,500. Now, from our point of view, the fall may continue with a target of $12,426. As we warned, overcoming the downward trend line does not mean the end of the "bearish" trend since, in parallel, the price was in a side channel. Now that the lower limit of this channel has been overcome, the quotes may continue to fall.