After a sudden turmoil in the FTX exchange, crypto enthusiasts thought Binance would come to the rescue, but Binance officials have announced that it is beyond their control.
Binance exchange can’t support FTX customers to provide liquidity on the platform. As a result, the crypto market has been reacting negatively.
Bitcoin is forming a green candle today, but it may turn red within a few hours. Moreover, this incident after the Terra (LUNA) fiasco reveals the dark side of the decentralized cryptocurrency because there is no security of the government or the central banks.
As a result, if the price of digital assets drops significantly, investors will lose their money in this uncertain time. Many experts think it is an emergency exit from the crypto world, especially for retail investors who suspect the sustainability of Bitcoin for the long term because of the Proof of Work consensus, which is not energy efficient.
Besides that, investors could get better and safer returns for the long term if they invest in government bonds and securities, so cryptocurrencies have been observing an outflow, and it is continuing at the end of this year. It is suspected that the outflow might continue in the next year also. Is it the right time to invest in BTC cryptocurrency in this fearful market? Click here to know!
In the last three days, Bitcoin has lost its value by more than 15%, and we can find bearish engulfing candles with high volumes that suggests extreme bearishness for the short term.
The last daily candle has broken the lower Bollinger Bands with negative MACD and RSI, which does not make it suitable for short-term investment. At the time of writing this post, BTC was valued at $16,664, which is below the strong short-term support of $18K. You should not invest until it regains the level.
The bearish momentum continues even on the weekly chart. Bitcoin has been forming lower lows, and it has broken its long-term support this week. The last weekly candle has broken the lower BB with a decent volume. Indeed, it might come to the level of $10K, which could be an ideal time for long-term investment.
Many experts believe this downfall is caused by Binance-led selling pressure, and it would not last long, so we can expect Bitcoin to regain its previous support of $18K within a few weeks.