The trader described the likely scenarios for the movement of the price of bitcoin
The crisis of the FTX trading platform has set off a chain reaction that will lead to a further fall in the cryptocurrency market. The collapse of Solana (SOL) by 34% per day is only the first major step. The Terra ecosystem, which collapsed in May, is a small player compared to FTX.
The fear and greed index in the digital asset market stopped at 21, which may seem low. But this is not an extreme fear — historically, Bitcoin has stalled or bounced below 10.
The chart below shows the fixing of the first cryptocurrency under the level of $18,400. Overnight, the price managed to return to the range of $18,400–20,400. On the eight-hour timeframe, the bears are showing high aggression without signs of a possible rebound.
The cryptocurrency market has broken through summer lows. At the time of writing, it shows no signs of rebounding anytime soon. A flat trend is possible within a few days, but the main forecast is a further decline.