BTC trying to build support around 16K
The crisis caused by the bankruptcy of FTX still has negative effects on industry confidence. One of the effects of the bankruptcy of this exchange is the liquidity issue that the FTX token faced. After the bankruptcy, Binance tried to buy the whole company first and its FTT Token, however with rumors that the US Justice Department would investigate FTX, they gave up on this decision. Right after the Binance final decision, last Friday, FTX CEO Sam Bankman-Fried resigned, and the company declared bankruptcy.
With this bankruptcy and several haceks that we recently had, the confidence in the crypto industry have undermined, and we can see their effect on prices. The downtrend in the crypto market paused after a sharp decrease, as stock markets started to increase after slower US inflation numbers. However, we cannot see a positive sentiment in this industry and enough reason to say investors can trust and return to the market.
Bitcoin price fell from $21,000 to $15,500 last week, hitting its lowest price in two years. Bitcoin price started to recover during the weekend though above $18,000. Later this week bears again started to move lower to trade under 17,000 US dollars. 20 EMA at 18,900 is the key pivot point and under this level, still we can look after 14,000 US dollars. On the flip side, with breathing above 20 EMA in the daily chart, the downtrend can pause in the short term and above 20,700 we can buy for the short term and 23,000 as the next target.
