Crypto daily report

Bitcoin Price Prediction as BTC Sees $16 Billion Trading Volume Come In

Blockchain news, News

Bitcoin (BTC) was trading near a recent price floor as the weekend began on a bearish note. Bitcoin is trading slightly lower on Saturday, below the 23.6% Fibonacci retracement level, with resistance at $17,250.

Stock-to-Flow Sets a New Low

An already negative trend has been reinforced by the continuous drop in BTC’s price in the wake of the FTX controversy. This affects not only miners but also some of Bitcoin’s most well-known metrics, and it has repercussions for many other essential parts of the Bitcoin network.

One of these is stock-to-flow (S2F), whose price predictions are under greater scrutiny and criticism. The model, which used block subsidy halving occurrences as a central ingredient in plotting exponential price growth through the years, was very popular until Bitcoin’s last all-time high in November 2021.

While S2F is not “up only,” it does allow for large price swings; yet, even with those factors taken into consideration, current targets remain significantly higher than the current market price. 

On November 19th, Bitcoin should trade for a little over $72,000, or a multiple of -1.47, according to the dedicated tracking resource S2F Multiple. On November 10th, as the market felt the effects of FTX, the multiple touched -1.5, a negative reading is never seen before in S2F’s history.

FTX Problems are Getting Even Worse

Despite the fact that it has been two weeks, FTX-driven fear, uncertainty, and doubt (FUD) is keeping Bitcoin prices under pressure. FTX was under the watchful eye of the Securities Commission of Bahamas (SCB) earlier this week.

To look into FTX’s violations, the regulator teamed up with the Financial Crimes Investigation Branch. The commission’s swift denial of the SCB’s request came after FTX announced it would begin allowing Bahamian funds withdrawals. Recent news, however, shows that SCB action was taken against the exchange days before the investigation even began. 

Earlier this week, the governing body issued a statement saying it had taken control of FTX Digital Markets (FDM) funds and transferred them to a digital wallet managed by the SCB. The commission claimed they did this to protect customer money and assets. 

With more authorities looking into the FTX exchange, the company’s already dire situation deteriorated further. Disruptions to the cryptocurrency market have followed the exchange’s closure. Because of this, people who hold BTC/USD might decide to liquidate their holdings for safety reasons. 

The unpredictable market movement also means the price could go up, down, or sideways.

Bitcoin Price Prediction

It began trading at $16,683, with a high of $16,772 and a low of $ 16,564. BTC/USD is currently trading at $16,653, down by nearly 0.50% in 24 hours. CoinMarketCap now ranks first, with a live market cap of $320 billion.
It has a total supply of 21,000,000 BTC coins and a circulating supply of 19,211,562.

1668870744 572 Bitcoin Price Prediction as BTC Sees 16 Billion Trading Volume
Bitcoin Price & Tokenomics – Source: Tradingview

Bitcoin’s price is consolidating within a wide trading range, currently between $15,800 to $17,200.  Since Bitcoin’s price dropped below the 23.6% Fibonacci level of $17,250, the chances of a downtrend remain strong until the next support area of $15,800. 

On the downside, Bitcoin’s immediate support is at $14,530, and if the bearish trend continues, the price could fall as low as $13,850. Because the RSI and 50-day moving average indicate a bearish bias, the price of Bitcoin could fall below $15,830 if current support fails to hold.

1668870747 285 Bitcoin Price Prediction as BTC Sees 16 Billion Trading Volume
Bitcoin Price Chart – Source: Tradingview

Today, however, the selling bias remains strong below the $17,250 level. On the other hand, increased BTC demand can push the BTC/USD price above $18,250 and toward $20,000.

Compiled by Coinbold