Bitcoin’s Floor

Based on this article,many investors have completely exited cryptocurrency due to FTX’s collapse. Perhaps, they are just following the advice of one influencer to sell all their cryptocurrencies now! Too many are afraid that other big names will soon follow FTX into bankruptcy.

Finding lessons from the past, it is funny that the writer of the above article compared the busts that happened in the early 1900s and the early 2000s. Perhaps yes, there is a similarity between the collapse of banks and dot-com companies, but to compare the emergence of strong companies like Google and Amazon to the establishment of the Federal Reserve is misleading. On the basis of such a comparison, the writer arrived at a wrong conclusion claiming that the good that will come out of this FTX disaster is that regulators will enter the crypto space and will protect investors.

I wonder what this guy is eating and drinking. I also wonder about the kind of world he is promoting.

After making such a faulty comparison and conclusion, the writer then introduced his Bitcoin price forecast. Based on his technical analysis, the token has broken through an important support/resistance at $18,156. He also added that the price of the coin is now moving “below all moving averages.” He predicted that Bitcoin will continue to fall and finds new support at $15,000.

Observing the FTX drama, it is just normal to see bearish forecasts. Analysts tend to ride what is popular. In the midst of the current negative sentiment, they are now looking for BTC’s floor price.

Sorry RK, I know you have been waiting for so long at the $10,000 level, but I am afraid that technically, Bitcoin will not visit that price.

This current discussion on Bitcoin’s floor price reminds me of the post I published in the middle of June this year. I noted at that time that the challenging part was to guess the next support for Bitcoin’s price. I mentioned the December 2017 high at the $20,000 area as strong support. Nevertheless, I added that if the $20,000 support will be broken down, “the worst case scenario is that BTC may reach the $15,000 area, which is its 78.6% Fibonacci Retracement.”

Time is so fast. I didn’t anticipate that my analysis five months ago would really come to pass this November. But for many such a “worst case” scenario is still too good. They expect a lower price than $15,000.

I am glad to see Bitcoin touching that lower gold line. I didn’t expect that. The rally that began in 2017 and peaked in November 2021 has already found the floor of its 78.6% Fibonacci Retracement at $15,397.00.

Grace and peace!