BTC Price Faces 20% Drop in Weeks if Bitcoin Avoids Key Level Analyst

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Bitcoin (BTC) remained rigid below $17,000 at Wall Street’s open on Dec. 19 as skeptical traders feared further downside.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewBTC Traders Call Time on Upside Potential

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD persisting around the $16,700 mark, virtually unchanged over the weekend.

The pair saw only fractional volatility on the open as US equities edged lower. At the time of writing, the S&P 500 and Nasdaq composite indices were down 0.5% and 1%, respectively.

For Bitcoin traders, there was little to celebrate, with consensus forming around the possibility of testing lower levels next.

Bearish as long as it stays below $19,000 Crypto Poseidon summarized alongside a chart.

BTC/USD annotated chart. Source: Crypto Poseidon/Twitter

Popular trader and analyst Rekt Capital pointed out that $17,150 was an important level to recover to avoid further decline later.

If BTC continues to reject resistance around $17,150… Then price could drop as much as -20% lower in the coming weeks, he predicted, uploading the BTC/USD chart to 1 month.

Rekt Capital added that there is still time for BTC to make a monthly close above the ~$17,150 level later this month, but that a monthly close below ~$17,150 would confirm the start of an upward trend. a breakdown from here.

Michal van de Poppe, founder and CEO of trading company Eight, meanwhile offered a slightly more optimistic outlook.

With more US economic data expected towards the end of the week, BTC/USD had the potential to break higher and target $17,300 to then offer short opportunities.

No breakthrough, then looking for longs around $16.2000 or $15.5000 he shot back.

BTC/USD annotated chart. Source: Michal van de Poppe/ CEO of TwitterGrayscale: FTX was a ‘people failure’

The news that BinanceUS, the US subsidiary of the largest crypto exchange Binance, had offered to acquire the assets of the troubled lender Voyager, meanwhile had no tangible impact on market performance.

Related: “Lower wave” for all markets? 5 things to know about Bitcoin this week

The latest development in the FTX saga, the announcement came as Binance itself continued to run what its CEO, Changpeng Zhao, again called FUD over the weekend.

In a letter to investors, Michael Sonnenshein, CEO of investment firm Grayscale, sought to draw a clear distinction between FTX and crypto as a whole. Grayscales’ parent company, Digital Currency Group (DCG), had also been caught up in the FTX aftermath.

FTX was a people failure, not a crypto failure: too many investors were wronged. From crypto to mainstream finance, mainstream media and DC, it seems few people have been spared deception through false narratives and false documentation, he wrote.

We should not, however, confuse the actions of a few individuals and organizations with Bitcoin or Ethereum, the underlying blockchain technology, or smart contracts and decentralized financial applications.

Grayscales flagship product, the Grayscale Bitcoin Trust (GBTC), was trading at a 48.7% discount to the spot price of Bitcoin as of Dec. 17, its largest discount on record, according to Coinglass data. .

GBTC premium to assets held versus BTC/USD chart. Source: Coinglass

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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