After the ruckus last week on account of the FTX drama (which by the way has only intensified), Bitcoin shot down like a comet, taking with it the entire crypto market. Many large caps posted lower double digit losses while microcaps were completely destroyed.
In the days following the major FTX bankruptcy news break, Bitcoin has seen some (quite suspicious) price trends, which can only be attributed to price manipulation.
In last week’s analysis, we revisited an old pattern that became apparent back in July, 2022. The pattern is a ‘Staircase Down’ (staircase to hell if you like) kind of pattern and we are currently on the third step of this staircase.
How low does the staircase go? Only time will tell. The other noticeable thing we saw was that the consolidations became longer and longer after every fall/crash. The longer the consolidation the, the harder the crash.
What Happens Next Week?
Well, Bitcoin has been consolidating below the critical support of $17,600. This previous support has now turned resistance, which is not good news for Bitcoin. This shows a lot of weakness on the part of the bulls.
Moreover, on the 4-hour chart, the sideways movement resulted in the formation of a descending triangle, a bearish continuation pattern. Things are not looking good for crypto.
The descending triangle threatens to push Bitcoin price down to between $10,600 and $12,000, which coincides with the additional -32% fall we are expecting in this bear market.
The FTX news is doing a great job sending the markets to Helheim on its own, but the steam seems to be dying down, especially as evidence emerges that Sam Bankman-Fried (SBF) might have been a U.S government project to infiltrate crypto and blow it up from the inside.
This notion has been further supported by the fact that mainstream media refuses to portray SBF as the reckless investor and criminal he is and instead paints him as a saint who helped crypto discover the need for regulations!
We have also received word (more like rumors) of another possible black swan event just before Christmas. We can speculate much on it, but it is better to be safe. One way or another, the markets are going down.
Stay safe and DYOR!
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.