Bitcoin price hits multi-year low of $15,600, analysts expect further decline

Bitcoin price hits multi-year low of $15,600, analysts expect further decline

Investor sentiment in the crypto market is floundering after Binance decided to end its deal with FTX to buy the distressed cryptocurrency exchange. The events sent Bitcoin to a new yearly low, while other altcoins also saw steep declines.

Data from Cointelegraph shows Bitcoin (BTC) dropping to $15,698 amid chaos caused by FTX’s potential insolvency and Binance deal failure. Analysts look to technical charts to try to find the next price trajectory.

Analyst expects further decline with brief support at $12,000

Independent market analyst, CanteringClark, said BTC price could possibly find a near-term bounce to $15,000. Citing an assortment of indicators, analysts suggested that Bitcoin could eventually settle around the $12,000 level.

Will the price of Bitcoin fall below the major multi-year moving averages?

Analyst Caleb Franzen explained that the Estimated Moving Average (EMA) is an indicator used to gauge the price over a certain period of time. According to Franzen, if the price of Bitcoin continues to decline, it would be the first time in its history that the 52-week and 104-week EMAs cross below the 156-week EMA.

Read more: Bitcoin Falls to New Yearly Low at $16.8,000 as FTX Insolvency Fears Turn to Contagion

Fear grows and investors sell at a loss

Dave the wave, an independent market analyst, highlights the growing market fear surrounding Bitcoin using the logarithmic growth curve. According to Dave, if Bitcoin’s monthly candle closes below $16,907, Bitcoin’s growth will have harmed the use of this important long-term metric.

Citing the aSOPR on-chain metric, Glassnode’s analysis shows spenders selling at a 10% loss, which hasn’t happened since the June 2022 selloff.

Analysts across the market were hoping that Binance’s bid to acquire FTX would stop the current sell-off hemorrhage and now that the deal is off, investors are likely to amplify their risk position.