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



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 platform.

Where did Bitcoin’s ‘glory days’ go?
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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,, BlockFi, among others.

*With information from Business Insider

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

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