A new crisis struck the cryptocurrency market last November 2022, to deserve the name Black November, after Bitcoin broke its previous bottom and headed into the unknown, causing a wave of panic and violent fluctuations in various crypto markets!! So what happened? Where is the next direction? What are the expectations for the new year 2023?? Will it be a recovery year for the market? ,,, This is what we will answer in our current report
Unfortunately, the epic collapse came from the FTX platform, which found its way to bankruptcy from a valuation of $32 billion, at a time when Bitcoin had begun to catch its breath from fears of economic recession and high interest rates, and it rose back above $20,000 levels and even exceeded 21,000 in the past. In early November, however, cryptocurrencies collapsed like dominoes, following the FTX shock, to their lowest levels in two years.
Losses hit bitcoin
Bitcoin overcame fears of high inflation and interest rates in early November, and rose to its highest levels since September 12, above $21,300 on November 5. Cryptocurrency is a general rule that should not be overlooked!!
At the same time, signs of an FTX crisis were beginning to emerge, as increasing requests from clients for refunds led to strong withdrawals that pushed the platform into a liquidity crunch, which led to the signing of a non-binding agreement by the cryptocurrency exchange. Binance to buy NTX to help weather the crisis, CEO of the exchange Changpeng Zhao said via Twitter.
Despite this, Binance quickly retracted the acquisition after finding a gap of more than $6 billion between the liabilities and assets of the FTX platform. Not only that, but the platform decided to stop trading the FTT token, which is the FTX currency, and advised users not to trade it.
Here, cryptocurrency investors realized that FTX was on its way to collapse, as it filed for bankruptcy protection, and fears spread in the general market, so that Bitcoin fell on November 9, below $ 17,000, for the first time in two years, breaking the bottom recorded this year in last June.
Bitcoin continued to be stuck in the range of 16 and 17 thousand dollars in the following two weeks until it plunged near $ 15,550 on November 22, which is the lowest level since November 2020, and Ethereum - the second largest cryptocurrency by market value - fell to less than $ 1,100. On the same day, for $1,600 on November 5th.
Early this week, bitcoin traded above $16,500, which is equivalent to a quarter of the all-time high recorded in November 2021 near $69,000, which is the same for the ethereum currency until it trades at $1,250, compared to the record level above $4,600 a year ago. One.
*Bitcoin performance since the beginning of 2022
What does the future hold for cryptocurrencies?
Before the FTX platform crisis, the cryptocurrency market was basically turbulent and recorded significant losses since the beginning of this year, due to fears of an economic recession, after the Federal Reserve unleashed a series of rate hikes, in order to curb accelerating inflation.
The matter did not stop at the collapse of one of the cryptocurrency exchanges, but investors were concerned about the possibility of similar platforms being exposed to the same FTX crisis, which is what is starting to happen now with the transmission of infection, the latest of which was the announcement of the Genesis platform and the Australian Swyftx platform to lay off their employees and expose them to financial hardship that may threaten bankruptcy.
Faced with this concern, Bitcoin moves in a narrow range as it is expected, as Coinpedia expects the most popular cryptocurrency to drop to $13,450 by the end of this month, while CoinMarketCap sees that Bitcoin may end 2022 above $21,000.
In my opinion, the ability of Bitcoin's consolidation above $15,500 should not be overlooked, despite all the negative news from the platforms and the pressures related to recession and interest concerns, which should be seen as a positive sign of absorbing the worst, and that we may have already reached bottom levels!!! This is what I will explain in detail in the next paragraph
Technical Analysis
The price is trading today, December 8, 2022, around the level of $16,800. We notice that there are positive breakthroughs on the daily frame of the RSI indicator, with the formation of a head and shoulders reversal pattern on the four-hour frame, which may support the idea of rebounding and reaching a bottom.
The general view of the current wave structure since the top of April 2021 is near 65 thousand so far. I believe that it is a flat wave wire to form the fourth wave (4) within the bullish sequence that started from the bottom of December 2018 from the level of $3125. Therefore, when the current correction ends, I expect a fifth wave to rise. Finally, it brings us back above the current historical peak, 69 thousand. It may, God willing, target the level of 90 thousand dollars during 2024.
And this current fourth wave (4) flat took an internal structure 3,3,5, and the last wave C of it came in the form of a falling wedge or ED Ending Diagonal, and currently it is assumed that we are either ending its last wave e or walking in it, and for the validity of this analysis, it must remain above the level of 13800 Dollars, the signs of the movement supporting the validity of our positive vision begin with a return to trading above the $19,000 level, to clearly announce to everyone that the bottom stage has ended and a new upward journey has begun.
Technical vision and abstract
In general, we are in aggregate bottom levels for investors, we recommend entering them, and any withdrawals that I think will not break the 14 thousand level, and very soon the journey of ascending to a new historical peak will begin, and perhaps the behavioral paradox will be reached for the first time before the date of the next split of Bitcoin Halving in 2024
And on the occasion of the end of the current year and the start of the season of expectations for the new year, previously last year I expected that the year 2022 would be the year of the great correction, and my vision was correct, thanks to God. for Bitcoin and Ethereum
My big personal bet is still on the Ethereum currency, which has been mentioned more than once that it will be the wild golden horse that will surprise everyone with the rise of unexpected goals.
It is one of the important currencies that I recommend buying in the current bottoming phase
BTC , ETH , ETC , DOGE , ADA , THETA , HBAR , DOT , UNI , MATIC , MANA
The title of this article reminds me of a report I published in April 2020 from an atmosphere of 6 thousand dollars. I expected to reach 50 thousand. I hope that my vision will be correct as it was previously correct.
Best wishes to all friends and followers for a happy year 2023 that will overcome all the crises of 2022
And may God bless everyone from his goodness
Iyad Aref
Founder of the economic site Namazon
