Bitcoin Chart Crashes in Another 30% Downside From Here, Canaccord Genuity Predicts

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Following the failure of FTX last month, cryptocurrencies remain lower than they have been all year and could remain so for a long time, according to technical analysts Canaccord Genuity. “The recent outage by bitcoin and [ether] below important support near $18,431 and $1,256, respectively, confirms that they are in further medium-term downtrends,” analyst Javed Mirza said in a note Thursday. “C is a strong technical negative and opens the door for a test of major support near $11,918 and $560, respectively, or another 30% and 57% decline from current levels. A move towards these levels “is likely to see longer-term consolidation, over time,” he added. On Wednesday, bitcoin crossed the $17,000 level for “the first time in two weeks, according to Coin Metrics. It hovered around that mark on Thursday morning. Ether was trading at around $1,200. Mirza also said that a short-term, one- to two-week bounce is underway in both cryptocurrencies.This could send bitcoin and ether up 27% and 15%, respectively.In order to confirm this short-term uptrend term, it would take a multi-day close above their 200-day moving averages, $21,465 and $1,481, respectively. Already a bad market, crypto is no stranger to volatility and crashes.It could take some time before crypto prices start to reflect the long-term value of the underlying blockchain technology. “The crypto industry rhymes with the craze for Inter net of the 1990s,” Mirza said. “While the applications of the technology are compelling, it may take some time before the innovation occurs, leading to widespread use of this technology. This will likely lead to a similar outcome to access to ‘Internet to the public, as many of the surviving companies have become dominant industry leaders (e.g. Netflix, Google and Amazon).

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