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Bitcoin’s journey through its worst week in 2022

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Key facts:
  • With the collapse of FTX, the cryptocurrency market suffered in full.

  • Positive data on U.S. inflation could be a relief for the price.

After ending October on a positive note for the price of bitcoin (BTC), the second week of November was tinged with red. The market’s main cryptocurrency suffered a violent fall, causing it to trade at the worst prices of the year 2022.

Depreciating by 20 percent within two days, BTC retreated to levels that the traders feared y have not been recorded since 2020the year of the pandemic. Thus, the gains that had positioned Bitcoin were wiped out. days ago above $21,000 per unit.

The origin of the market crash is the product of an Earth/Moon-sized debacle and maybe, the news of the year in the cryptocurrency world. What began as a Twitter spat between two major players in the industry ended up resulting in the following the collapse of a tokenthe disappearance of a multimillion-dollar fortune in a few hours and a bankrupt exchange With millions of dollars frozen by its users.

In the wake of this event, which also brought with it failed purchase transactions and investigations by regulators, the cryptocurrency market went into full panic mode. And as the story involving one of the most prominent cryptocurrency exchanges in recent years continues to unfold, the price of bitcoin and other crypto assets will continue to dance to the tense beat.

However, although the outlook is complex, in recent days the bitcoin market has lightened. which at the time of writing is back at the US$17,000 level. It appears that the improving macroeconomic outlook, with the United States reporting an improvement in the inflation rate, has eased the pressure on the BTC price.

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Chart of the Week:

This week’s chart shows. the number of days since the bitcoin market entered a downward trend.. As can be seen in the image shared by the Twitter user, @BTC_ArchiveThe 2018-2019 bear market is compared with the current bear market.

For this week we have already counted 364 days since the market turned downward.the same period that the cryptocurrency went through to generate a floor and resume its upward path 4 years ago. Although some traders see this as a positive sign that the market may repeat its past behavior, there is still no certainty that this will happen.

For example, a recent analysis by the company Cryptocompare notes that, in recent bear markets, BTC spent between 364 and 407 days in the red before returning to the upside. That is, if one wants to make a prediction about the price of bitcoin based on its historical behavior, the cryptocurrency still has room to keep going down.

The report also reveals another fact that could be decisive to determine whether this bear market will end soon or stay for another season. While the ecosystem is still reeling from the news of the bankruptcy of one of the most important exchanges in the industry, we will be able to expect more volatility in the price of bitcoin.

What will happen to bitcoin in the coming days?

With everything that has happened in the cryptocurrency market over the past few days and with the FTX case still developing, more than a few people are wondering what will happen to the price of bitcoin. For example, several famous personalities in the cryptocurrency ecosystem have expressed their views on the opinions and perspectives On what might happen in the future. Robert Kiyosaki, author of the book “Rich Dad, Poor Dad, also has made his prognosis known for BTC.

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In line with the bitcoiner community, Analysts and traders have also been closely following the BTC trend. on the charts. Exploring the possibilities that the FTX exchange could be saved or rather generate a further decline, experts point out that there are several key price levels that bitcoin could visit in the near future.

Among the news that could determine the future of cryptocurrency, the aftermath of the FTX debacle is undoubtedly at the top of the list. With the bankruptcy of this company and its investment firm, Alameda Research, more than a few investors and companies are are struggling. A situation that, if left unresolved, could generate a domino effect.

AlsoStress in the cryptocurrency market could increase if it is confirmed that more companies are in danger of bankruptcy because of the current bear market. Time will have the last word.

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