Bitcoin continued its sideways movement today, hovering around the same price point despite market uncertainty. The king of crypto continues to maintain the 16k – 17k zone amid massive company layoffs and bankruptcy filings.
Is Bitcoin a ticking timebomb? Let’s explore this further.
Previous Bitcoin Analysis
Last week’s Bitcoin analysis showed some interesting insights into the Bitcoin chart. The price was dangerously close to the 10, 21, and 50-day moving averages. We expected BTC to fall off this week or sometime soon. However, since the markets are manipulated (yes, you should know that by now), BTC has held steady.
We also expected a retest on the 50-day moving average before another leg downward.
Bitcoin managed to hold its price below $16,929 and above $16,427 for the past two weeks now, which is quite amazing given how tight that range is.
What Should We Expect From Bitcoin Moving Forward?
The tight range mentioned above is inside an even larger range spanning over 2 months now. You can see the buy-side liquidity (BSL) and sell-side liquidity (SSL) hunts by institutional money. The moves try to take the smaller fish out of the market. They are usually employed when the smart money is about to drive prices in one direction aggressively.
The tight range mentioned above also sheds light on a previously unseen chart pattern – the bearish flag. Bearish flags are continuation patterns.
The Black Swan Still Looms
The black swan event that has been referred to in many Bitcoin analysis articles here seems to have only been pushed forward. News of crypto billionaires declaring bankruptcy, others getting murdered, and billionaire crypto companies filling bankruptcy have rattled the entire crypto sphere.
Do Kwon of Terra Luna, 3Arrows Capital, Celsius, FTX and Sam Bankman-Fried, and most recently Barry Silbert of DCG have been brought to their knees by the current economic times. According to Forbes, Barry Silber, founder of Digital Currency Group (DCG )and Grayscale Trust is now worth zero. The crypto-venture capitalist who was once worth $3 billion is now in so much debt, his entire net worth would be able to pay it off.
Reports of Genesis Global Capital filing for bankruptcy if they fail to pay back the Winkelvoss twins a $900 million loan would force Grayscale to liquidate. This is terrifying news since Grayscale currently holds 643,572 BTC.
The Bitcoin crash that would follow would be of epic proportions. The black swan was never averted. stay safe
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decisions based solely on what you read here.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a biochemist by profession and also loves to play the piano.