$17,000 threshold Bitcoin has been conquering for last few weeks has fallen, unfortunately
The $17,000 price range bitcoin has been working in for the past week has fallen, and the digital gold price is back in the $16,000 area, with a potential return to the local bottom. Here is the most likely scenario we can see in case of a failed 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 could turn out to be a consolidation and accumulation array in which bitcoin could gain some strength and stability before rallying to the upside.
Breakdown further
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 liquidating most futures and options positions, traders and investors are moving funds away from centralized exchanges to protect their funds from FTX 2.0 positions.
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.
For now, bitcoin is trading at the $16,800 price level and has lost 1.6% of its value in the last 24-hours.
