Since the increase in the interest rate in the United States, the leader in cryptos has fallen considerably. It has indeed suffered a total drop of 10% since Thursday. At this rate, bitcoin could end the year below $15,500.
Unfavorable situations for the rise of bitcoin
Since the Fed hiked the key rate, the dollar has gained slightly in strength. This has led most assets against this currency to decline for the past few days. Bitcoin, the largest crypto by market capitalization is one of them. Indeed, since Thursday, this crypto has already lost 10% of its value. Thus, this rise in the interest rate can be seen as favorable to a decline in bitcoin.
Moreover, the situation of the major crypto exchanges continues to shake the crypto industry. After the bankruptcy of FTX, it is now Binance’s turn to be in troubled waters. Indeed, the number of BTC withdrawals at Binance has recently increased significantly. There is no doubt that the bankruptcy of this platform will further plunge the value of cryptos. But for now, CZ is trying to dismantle the FUDs surrounding his company.
On the way to $15,500
Apart from these situations that favor the decline of bitcoin, the price structure is also bearish. Indeed, after touching the $18,500 resistance zone, the price of BTC plunged 10%. This fall allowed the price to break through the $16,700 support. This move aligns with the scenario predicted in a previous analysis. This is why one might consider a decline in Bitcoin below $15,500. But before that, the price might make a correction towards $17,500. A shoulder-head-shoulder figure could eventually form with this correction.
Moreover, a double bottom has also formed on the dollar index. This bullish figure could lead to a rise in the value of the dollar. All of this favors a decline in bitcoin in the future. This is why bitcoin could end the year below $15,500.
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