The price of Bitcoin against the US dollar has significantly decreased in the past week following the fall of the FTX exchange. BTC/USD experienced a sharp decline below the $16,000 mark to register a fresh four-month low of $15,512. Ever since reaching the low, BTC has been trading in a straight line over the past ten days, maintaining a foothold above the $15,000 level as recovery stays capped under $17,000. At the moment, Bitcoin is trying to recover from heavy market losses as investors continue to buy the dips in hopes for the recent rally to gain upside traction. At the time of this analysis, BTC/USD is hovering above the $16,500 mark after several days of trying to break the $16,000 support level. As long as the price keeps trading towards the daily moving average (MA 50) area, there is potential for an upside reversal to test the nearby $19,000 resistance territory. The FTX collapse spread its contagion throughout the crypto space, bringing down the majority of crypto exchanges and having far-reaching implications for the prices of major assets.
Key Levels
Resistance Levels: $22,000, $20,000, $17,500
Support Levels: $15,000, $13,000, $10,000
BTC/USD Daily ChartAfter its recent decline, BTC/USD has failed to improve its rebound from $15,512, so any moves below it may prolong the bearish correction in the near term. If the pair falls below the critical level of $15,000, the next key level around $13,000 may provide initial support.
However, steeper drops could send the pair tumbling toward the $11,000-$10,000 range, changing the outlook fully to bearish. If the market stages a significant rally, it could attempt to break through the $19,000 resistance level on its way to retesting the psychological zone of $20,000.
BTC/USD 4-Hour ChartOn the 4-hour chart, the BTC/USD lost ground below the $17,500 level, and the moving average (MA 50). The bears even dragged the pair below $16,000. It has fallen as low as $15,512 and is currently recovering its losses. Above the $16,000 level, there was a minor increase.
On the upside, immediate resistance is located near $17,500. The next major resistance level could be around $19,000 and the moving average (MA 200) zone. Any further gains above the stated zones may set the stage for a move toward the $20,000 resistance level.
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