Bitcoin price suddenly dropped below the spiritually valuable $20,000 level once again. The world’s largest cryptocurrency recorded the lowest level of $ 19,559. Currently, it is changing hands at $19,780. So what triggered the rise? What’s next? Here are the events and the forecasts of the analysts…
Bitcoin crashed, millions of dollars of positions liquidated
According to cryptocurrency information platform Coinglass, $112.83 million worth of crypto has been liquidated in just the past hour. Long states account for 94.94 percent of liquidated positions. According to many experts, the last drop was due to the uncertainty of FTX, which deeply affected the market. Koindeks.com As we have also reported, Binance CEO Changpeng Zhao announced that he would sell his FTX Token (FTT). The reason behind this is the “illiquidity” of assets on the balance sheet of Alameda, FTX’s sister company.
However, Sam Bankman-Fried, CEO of FTX and founder of Alameda, said that the company’s assets are okay in order to calm the rumors. Changpeng Zhao expressed his dismay that this situation led to a development like the Terra collapse. He also announced that he would make the sale for this reason. FTT dropped 15 percent in one hour without a hitch. Subsequently, the exchange token dropped 25.64 percent over the past day. According to blockchain analytics platform PeckShield, $284 million worth of crypto money was withdrawn from the FTX exchange.
What do analysts say about the decline?
On the other hand, cryptocurrency analyst Dave the Wave shared his comments on the change in the price of Bitcoin (BTC). According to the analyst, Bitcoin may no longer be going through four-year cycles of rise and fall. The expert said that BTC is no longer firing meteoric rises as it has in the past. Instead, we can say hello to a process where Bitcoin is experiencing mini-parabolic rises.
Dave the Wave pointed out that while the community would like a narrative, the four-year cycle issue may be out of date as the market matures. “What if there is another minor parabolic breakout in an increasingly ‘unstable’ market? used the terms. According to Dave the Wave, the change in Bitcoin’s behavior will be largely influenced by the willingness of speculators to bet big on BTC. He predicts that as the biggest crypto matures as an asset, speculators will eventually refrain from trading large BTC.
In this scenario, we will see small parabolas of the type seen recently. According to the analyst, these small parabolas will replace the cycle, reducing volatility. At this point, he points to the possibility of BTC going true to price discovery. Looking at the chart he shared, Dave the Wave highlights the potential start of a small parabolic segment for Bitcoin on December 12. He compares this to 2019, when BTC went from $5,000 to $14,000 in two months.
What were the analyst’s assumptions?
Koindeks.com As we have also reported, Dave the Wave has made many predictions before. He actually predicted that Bitcoin would drop to $6,400 in 2019. He said that over the past years, BTC will rise to around $11,000, then fall to $8,000. He knew the price action for real. In addition, the analyst accurately predicted that BTC would rise above $11,000 by February 2020.