Bitcoin price is currently trading below $17,500. This was a critical support that has held the price since March. Unfortunately, recent events favored the breakout of this level. At this rate, we could envisage a descent of bitcoin towards $12,500.
Bitcoin continues its descent, winter is likely to last
Recent events about FTX have rocked the crypto industry. Several tokens have indeed fallen with FTT, such as Solana (SOL). The two largest cryptos by market capitalization also suffered some declines in the past week. Certain influential personalities, such as Elon Musk on Twitter, believe that bitcoin will pull through, but the winter is likely to persist. Precisely, based on technical analysis, everything suggests that bitcoin will experience more descent.
Indeed, the sellers have remained in control since $25,000. After reaching this level on August 15, the price fell 37.5% to last Thursday’s low. During this decline, BTC broke critical support at $17,500. With this breakout, we can imagine that bitcoin could continue to decline towards $12,500. But before that, the price will have to make a retracement towards $18,437. This is half (50%) of the downside impulse move from $21,405 to $15,469. Moreover, the divergence of the RSI increases the probability of this “correctionto $18,437.
What if the structure becomes bullish?
Indeed, it could be that the price breaks through the resistance of $18,437 and the structure turns bullish. In this case, it is very likely that the “swing point” at $21,400 will likely be exceeded in turn. After that, there will be a potential retracement move towards $18,400, before a breakout above $25,000. However, a lot of hurdles will stand against buyers in this scenario. The closest is found at $20,134, which is also a key level on the Fibonacci tool. But the most relevant resistance is found at $22,000.
The current bitcoin price structure is in favor of a decline. Which also aligns with events happening on the crypto industry. This is why it is possible that the king of cryptos will continue its slide towards $12,500.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
