It’s fair to say that the first ten days of November have been nothing short of historic in cryptocurrency markets. The turmoil surrounding FTX, and its all-but-confirmed collapse, seems to have eclipsed both Luna and Celsius, who also capitulated earlier this year. The impact of this has been felt by bitcoin, which recently fell below $16,000 for the first time in two years.
Current Market Status
Cryptocurrency prices have been in free fall to start the month, as the FTX collapse has triggered a significant level of bearish sentiment.
Traders have moved to liquidate their positions in the marketplace, seeking alternative investments, with gold being one of these safe havens.
While gold has surged to a one-month high, crypto market volume has slipped $173.16 billion in the last 24 hours.
However, better-than-expected inflation data in the United States has given hope to BTC bulls, with the consumer price index (CPI) numbers for October coming in at 7.7%, better than the 8% anticipated.
The upcoming reaction to this could be a positive not only for bitcoin, but for crypto markets as a whole, which look for some signs of reversal, following a historic week of selloffs.
As of writing this, BTC/USD is currently trading at $16,932.90, as prices have rebounded from earlier lows of $15,682.69.
Looking at the chart, momentum seems to still be bearish, with the 10-day (red) moving average maintaining its recent downward crossover, versus its 25-day (blue) counterpart.
This typically is a sign of bearish momentum, with some still expecting BTC to fall to as low as $13,500 in the next few weeks.
The 14-day relative strength index (RSI) could be a reason why this is possible, with price strength still not reaching its long-term floor of 20.50.
Currently, the index is tracking at 37.94, and should this begin to decline further, bears will likely use the aforementioned floor as a target.
Could bitcoin fall below $14,000 over the next few weeks? Let us know your thoughts in the comments.