As investors wait to find out if other companies may also be hurt by FTX’s drop, their fears of a contagion in the cryptocurrency field keep growing. Because of this circle of suspicion, the Grayscale Bitcoin Trust (GBTC), whose discount from the price of bitcoin has reached a record of almost 50%, has become one of the most talked-about names. To trade more efficiently, you may use a reliable trading platform like this trading app.
When there is a lot of uncertainty, traders don’t invest because they don’t like the risk. Even though the price of Bitcoin has dropped a lot, only some people want to buy it. One reason could be this. During the bull phase, the Stock-to-Flow (S2F) model was used extensively.
But it’s getting increasingly criticized because the difference between what Bitcoin costs and what people thought it would cost has reached levels that have never been seen before. During the bull phase, the S2F model was used by more and more people.
Between $16,229 and $17,190, where trades happen, the price of Bitcoin stays in a small range. Most of the time, a long period with little change is followed by a period with a lot more change.
Moving averages are getting lower, and the relative strength index (RSI) is now in the negative range. This shows that the easiest way to move is down. If the price goes below $16,229, the low of $15,588 on November 9 could be at risk. If this support is broken and then closed below, it could mean that the trend is about to go down again. On the way down, the next level of support is at $12,200.
If bulls want to stop the price from falling further, they will have to move it above the breakdown level of $17,622 and keep it there for a while. If this happens, it will show that there is a lot of interest when prices are low. Then, each person may decide that $20,000 is their mental limit and stop betting.
Toncoin (TON) has made a big comeback since June, when it was at its lowest point, and kept a lot of its gains. This shows that traders aren’t hurrying to sell their assets at higher prices than they are now.
The TON/USDT currency pair has formed a symmetrical triangle, which is usually a sign that the trend will continue. Now, both moving averages are slowly but steadily increasing, and the RSI is in the positive area. This shows that the bulls have a slight edge.
If the price bounces back from the exponential moving average (EMA) of 20 days, which is about $1.65 right now, the bulls will try to push the price above the triangle. If they do well, the pair could go up to $2.15 and keep going up until they reach their goal of $2.87.
If the price falls below the 20-day exponential moving average (EMA), the pair could fall to the 50-day simple moving average (SMA) of $1.50 and then to the support line. If the price went below the EMA, this is what would happen.
The Chiliz (CHZ) currency pair is trying to make an inverse head and shoulders pattern. If it works, the pattern will end with a break and stop above the neckline. If that happens, it could start a new trend of going up.
Even though the reversal pattern’s goal is $0.54, the bears won’t give up easily. They stand up for the neckline very firmly. If the price falls below the 50-day simple moving average, currently at $0.21, the CHZ/USDT pair could fall to $0.18 and then $0.14.
If, on the other hand, the price finds support at the level where it is trading right now, buyers will try again to push the pair over the neckline and take control of the situation.
Moving averages that are getting flattered and an RSI close to the zero line show that neither the bulls nor the bears have a clear advantage. Because of this, the best way to get into new positions is to wait until the price breaks out of its current range.
In the last few trading days, the price of Quant (QNT) has dropped a lot, but it is now trying to get support from the support line and go back up. This shows that people don’t buy as much as they used to. If the price keeps going down and then breaks below the uptrend line, this bullish view may soon be wrong. After that, the price per pair might go down to $87 and then $79.
Many sales happen near the downtrend line, which slows the pair’s recovery. This shows that bears are more active at higher altitudes. The bears have been able to push the price below the moving averages, and now they want to try to push it even lower, first to $105 and then to $94.
To show that this negative outlook is wrong, the bulls will have to move the price above the downward trend line and keep it there for a while. The pair could go up to $125, where bears would fight back hard. If buyers can solve this problem, the price could go up by $136.