The BTC/USD pair, like the entire cryptocurrency market, continues to be under pressure from the developing crisis around the FTX exchange. The driver for the decline in quotations was the bankruptcy of the company, which its management announced on Friday. Since then, the BTC price has been actively losing value and today it has dropped to the level of 15555.00.
It also became known that along with the bankruptcy of FTX, 130 more legal entities intend to declare their insolvency, and the project manager Sam Bankman-Fried has resigned. Currently, the liquidation team is assessing the remaining assets and monetizing them to ensure the interests of affected investors, but they are unlikely to be able to return all the funds, since, according to Bloomberg, the amount of FTX debt is estimated at 9.0B dollars, and assets of varying degrees of liquidity are only 6.4B dollars left.
The current situation will certainly have long-term negative consequences for the digital assets sector, associated with the loss of investor confidence and the likely tightening of regulation of the cryptocurrency industry. In addition, the head of the Binance exchange Changpeng Zhao expressed confidence that in the near future the market may see the bankruptcy of a number of companies close to FTX. It should also be noted that the US congressmen promised to accelerate the development of a law on the protection of the rights of consumers of digital goods and submit it to the Senate in the near future. It is known that the document will contain a set of standards that ensure transparency of the activities of cryptocurrency companies and protect the interests of customers.
Technically, the price is testing the mark of 16250.00 (Murray [1/8]), consolidation below which will give the prospect of further decline to the levels of 15000.00 (Murray [0/8]), 13750.00 (Murray [-1/8]). In case of a breakout of the 17830.00 mark (Fibo retracement 23.6%), it will be possible to resume the upward movement to the area of 19250.00 (the middle line of the Bollinger Bands, Fibo retracement 38.2%) and 20000.00 (Murray [4/8], Fibo retracement 50.0%).
Technical indicators signal the continuation of the downward trend: the Bollinger Bands are reversing downwards, the MACD histogram is increasing in the negative zone, and the Stochastic is trying to reverse upwards from the oversold zone, but the correction potential looks limited.
Resistance levels: 17830.00, 19250.00, 20000.00. | Support levels: 16250.00, 15000.00, 13750.00.