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Why Bitcoin (BTC) Might Be on the Edge of a Precipice, According to Analyst – Money Times

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Instability in investor confidence is one of the factors affecting the bitcoin. (Image: Unsplash/Kanchanara)

the market for cryptocurrencies falling is a scenario that does not please many investors. Despite expectations that the bitcoin (BTC) and other virtual currencies leave this “bear market”, a crypto technical analyst stated that the bitcoin there’s still plenty of room to fall.

The biggest cryptocurrency of the world may be on the edge of a precipice. According to Katie Stockton, an analyst at Fairlead Strategies, the current bitcoin points to another drop 27%as the cryptocurrency tests an essential support level.

Yesterday (30), the bitcoin fell out under $19kgetting at US$ 18,993according to data from CoinMarketCap.

Although it was quoted at US$ 19,386 at the time of publishing this news, the bitcoin registered a weekly loss of more than 8%.

Will Bitcoin Freefall?

According to Stockton, if the cryptocurrency reaches a quote lower than the support level of US$ 18.3 thousandit can go into free fall until it reaches US$13.9 thousandvalue close to the maximum price recorded in 2019.

The recent drops in bitcoin added to other factors raised market concerns.

This week, crypto hedge fund Three Arrows Capital gave a default of $673 million of a loan he took from Voyager Digital.

The creditor notified Three Arrows of the default on Monday (27). The default prompted a court decision against the hedge fund.

On Wednesday (28), a British Virgin Islands court ordered Three Arrows Capital to be liquidated.

In addition, crypto exchange CoinFlex had to freeze withdrawals this week after not receiving $47 million which he lent to Roger Ver, CEO from the Bitcoin.com platform.

Where did Bitcoin’s ‘glory days’ go?
Check out Cryptocurrency Retrospective in 2022

One reason that may affect the price of bitcoin is the instability in investor confidence. The fluctuation of this metric led to a wave of financial deleveraging, reducing the investments in the cryptocurrencies.

Another factor that has influenced the crypto market is the wave of layoffs by cryptocurrency exchanges.

A possible economic recession, along with a potential “crypto winter”, has caused companies in the sector to announce layoffs since the beginning of June.

Some of the companies that have already announced staff cuts are: Coinbase (COIN)the Brazilian Bitcoin Market, geminiCrypto.com, BlockFi, among others.

*With information from Business Insider

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Disclaimer

O Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.

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