Bitcoin (BTC), the most valuable crypto token, has been performing very poorly in recent days, which could be attributed to the FTX bankruptcy, which has caused the crypto market to suffer and contributed to Bitcoin losses, which have seen it drop about 20% in seven days to trade at $16,789 level.
BTC dropped to a low of $15,872 earlier in the session before rallying to a high of $16,864. Aside from the bearish crypto market, the recent upticks in the US dollar, which rose against the euro and sterling on Monday, aided the declines in BTC prices.
Other well-known cryptocurrencies that finished in the red included Ethereum (ETH), Dogecoin (DOGE), Solana (SOL), and Litecoin (LTC).
In contrast, Twitter CEO Elon Musk’s strong comments were seen as one of the key factors that helped the BTC coin limit its deeper losses.
Elon Musk, the CEO of Twitter
Due to the prolonged market volatility following FTX’s decline last week, Bitcoin (BTC) began the week trading below $17,000. Following the fall of FTX, the market has struggled to find support; BTC has been trading at this level throughout the day.
Elon Musk, CEO of Twitter, expressed his views on the coin, causing it to deviate from its current support level of $15,800. Musk responded to Jason Calacanis’ tweet, saying, “BTC will make it, but it might be a rough winter.”
Bearish Crypto Market
Since the beginning of the week, the bitcoin market has performed poorly. Bitcoin, the world’s largest and most well-known cryptocurrency, fell nearly 5% today to trade at $16,103, as the weekend’s drop in cryptocurrency values continued.
According to the most recent data, the total value of all cryptocurrencies in circulation today is $845 billion, which is approximately 5% less than the $1 trillion mark. The price of Ether, the second-largest cryptocurrency and a member of the Ethereum network, fell by more than 6% to $1,191.
Bitcoin and Ethereum are now trading in the red after a week of volatility. Bitcoin has reclaimed the $16,000 level. Dogecoin was currently trading at $0.08, or 10% less than Shiba Inu, which was also trading at $0.000008.
Most cryptocurrencies fell over the weekend as markets reacted to the latest FTX hack news. The collapse of FTX CEO Sam Bankman-crypto Fried’s empire has harmed investor confidence in digital assets, and the crypto market has lost approximately $200 billion in value in the previous week.
The value of digital currency assets has plummeted this year, and FTX is the latest bitcoin company to face financial difficulties. As a result, the bearish crypto market has had a significant negative impact on BTC so far.
Stronger US Dollar
After falling to multi-month lows on Monday, the broad-based US dollar maintained its early-day bullish bias and took some further bids versus the euro and the pound.
Traders said the market overreacted to a minor shortfall in US inflation and prospects of a less aggressive Federal Reserve interest rate rise faded.
As a result, the strong US dollar was viewed as another important factor keeping the BTC under pressure.
Bitcoin Price Prediction
The current price of one bitcoin is $16,333, with a 24-hour trading volume of $42 BTC. Bitcoin has risen by 0.66% in the last day. Bitcoin is currently the most valuable cryptocurrency, with a market value of $322 billion. There are now 19,207,118 BTC coins in circulation, with a maximum of 21,000,000 BTC coins.
Bitcoin has risen over the $16,000 support level to reclaim the $18,000 level. At the moment, it’s consolidating in a narrow trading range, and a breakout of this will determine further price action.
Bitcoin is consolidating in a broad trading range of $18,000 to $16,000, with a breakout determining future price action. In the 4-hour timeframe, Bitcoin has completed a 38.2% Fibonacci retracement at the $18,100 level, and it is now stable.
A positive crossover occurs when the price rises above $18,100. This level may expose the Bitcoin price to the 61.8% Fibonacci level of $19,350.
Bitcoin could fall below $15,965 if it fails to break through the 38.2% Fibonacci retracement level of $18.250.
The MACD, a leading technical indicator, has entered the buying zone, but the 50-day moving average and RSI have not. If the closing candles fall below $18,000, BTC may continue to fall, with support at $16,000 and 15,850.
Compiled by Coinbold