After Binance opted to back out of its deal with FTX to buy the struggling cryptocurrency exchange, investor mood in the market is deteriorating. The incidents have caused other cryptocurrencies to experience a significant decline and drove Bitcoin to a new annual low.
According to Cointelegraph data, the instability brought on by FTX’s impending insolvency and the collapse of the Binance transaction has led BTC to drop to $15,698. To determine the direction of the next price movement, analysts are looking at technical charts.
Bitcoin Price Hits Year-End Low
CanteringClark, an independent market expert, said that the price of BTC would briefly rise above $15,000 before falling again.
The researchers predicted that BTC might finally settle around the $12,000 mark by citing a variety of indicators. The estimated moving average (EMA) is a tool used to measure price over a specific time period, according to analyst Caleb Franzen. Franzen claims that if the price of bitcoin keeps falling, it will be the first time in its history that the 52-week and 104-week exponential moving averages have crossed below the 156-week EMA.
Using the logarithmic growth curve, independent market analyst Dave the Wave emphasizes the market’s growing concern over Bitcoin. Dave claims that if the monthly Bitcoin candle closes below $16,907, the growth of Bitcoin will have decreased using this crucial long-term metric.
Glassnode analysis, citing the aSOPR on-chain metric, reveals that spenders are selling at a 10% loss, which has not happened since the sell-off in June 2022. Market analysts had hoped that Binance’s offer to buy FTX would halt the current sell-off, and now that the deal has been rejected, investors are likely to intensify their risk-off stance.