The cryptocurrency market has taken a major blow with Bitcoin price plunging to its lowest in nearly two years after Binance walked away from the FTX deal.
Bitcoin is holding at $16,451, trading 9.64% lower in the last 24 hours. Ether followed suit, and is changing hands at $1,171 down by nearly 10%. Solana seems to be the biggest loser, having been down 34.33% in the last 24 hours. Analysts are not surprised by the decline. They have been looking out for volatility given the uncertainty around FTX’s solvency and legal standing.
Gautam Chhugani, the senior analyst at Bernstein Research, says market factors such as providing SOL token liquidity and support for Solana ecosystem projects on the FTX exchange have been important drivers for Solana’s success. He outlined that this is an adverse event for the Solana ecosystem in the short run. And near-term pressure is likely on FTX/Alameda’s Solana holdings as the situation resolves.
With the Binance-FTX deal no longer on the cards, analysts are looking at technical charts to determine the next price path. Cantering Clark, an independent market analyst, believes BTC price could find a short-term bounce at $15,000. The popular cryptocurrency is likely to settle around the $12,000 level. Clark says this is as clean of a continuation break as one is going to get, but this time there is a catalyst to really send it. He outlined that the $15,000 mark might provide brief support, while the next major area for the BTC price to settle is around the $12,000 handle.
Caleb Franzen, an analyst, shared that the estimated moving average is an indicator used to gauge price over a certain period of time. He believes if Bitcoin price continues to fall, it would be the first time in its history that the 52-week and 104-week EMA’s crossed below the 156-week EMA.