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Bitcoin cost might still drop 40% after FTX ‘Lehman minute’ — Analysis

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Bitcoin (BTC) saw a fresh rejection at $17,000 on Nov. 18 as anxious markets weathered more FTX fallout.

BTC/USD 1-hour candlelight chart (Bitstamp). Source: TradingView

BTC gets a $12,000 rate target

Data from Cointelegraph Markets Pro and TradingView revealed BTC/USD stoppingworking to flip $17,000 to assistance — a pattern in location for nearly a week.

The set, like significant altcoins, stayed securely connected down by cold feet over the FTX fiasco and its knock-on results for different crypto services.

For experts, the outlook stayed simply as grim, with currently disappointing projections gettingworse in light of current occasions.

“This underperformance of all crypto possessions is here to stay upuntil the bulk of uncertainly hasactually cleared up — mostlikely just near the turn of the brand-new year,” trading company QCP Capital composed in its newest circular to Telegram channel customers on the day.

In an substantial market summary, QCP composed that its cost projections for both Bitcoin and Ether (ETH) now had to drop to show the effect of FTX.

Updating a diagnosis based on Elliott Wave theory from June, it validated BTC/USD now had a target of $12,000 and ETH/USD $800.

“As a side-note, crypto markets haveactually been trading comparable to products ever consideringthat the 2017 top — with extended Wave 5s as the longest wave,” the post included.

“Hence such possible cost action with brand-new lows into the brand-new year would be particular of previous bear market sell-offs.”

An accompanying chart highlighted the divergence inbetween crypto and stocks in November, with t connection inbetween them strongly shaken thanks to crypto’s underperformance.

BTC/USD vs. ETH/USD vs. S&P 500 chart. Source: QCP Capital

Popular trader and expert Cantering Clark, ontheotherhand, keptinmind that if the present bear market in danger possessions were to copy the worldwide monetary crisis, heavy losses were still to come.

“The Lehman insolvency was the climax of the 2008 monetary crisis. It was bottom product qualitatively, however the market stoppedbriefly and then devoted to 40% lower,” part of a tweet read.

“Never state neverever, and wear’t let your guard down.”

S&P 500 annotated chart. Source: Cantering Clark/Twitter

As Cointelegraph reported, $13,500 has likewise endedupbeing a popular disadvantage target.

Crypto pie “being cut enormously”

Continuing, QCP likewise voiced issues over decreasing volumes and open interest (OI) throughout both centralized (CEXs) and decentralized (DEXs) exchanges.

Related: US crypto exchanges lead Bitcoin exodus: Over $1.5B in BTC withdrawn in one week

“So far, CEX derivative exchange volumes haveactually been most impacted. Combined futures OI is now back to pre-2021 levels, a huge backwards action for the market,” it composed.

Bitcoin futures open interest chart. Source: QCP Capital

On the subject of DEXs, it stated the information “implies the whole crypto pie is being cut enormously.”

“Overall DeFi TVL is now less than 1/4 last year’s peak!” the post summedup alongwith more explanatory charts.

“Even DEXes which would be anticipated to gain the alotof, have just seen volumes increase to Jul/Aug levels, even with all the emergencysituation token/stables/chain switching that required to be done post-FTX.”

DEX volumes chart. Source: QCP Capital

The views and viewpoints revealed here are entirely those of the author and do not always show the views of Cointelegraph.com. Every financialinvestment and trading relocation includes danger, you needto conduct your own researchstudy when making a choice.

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