Bitcoin price has been on a strong bearish run for the past two days as concerns about the global crypto market rise. The world’s largest cryptocurrency has slipped more than 8% in the last 24 hours while its total market cap crashed by more than 9%. The total volume of BTC traded over the last day has also declined by more than 2%. Bitcoin has crashed 20% in the past two days.
Crypto Market Outlook
The overall crypto market outlook has been bearish for the past few days. The global crypto market cap has declined 7.76% over the last day while the total crypto market volume slipped by 3.79%. bitcoin’s dominance has also slipped 1% over the last day.
Being the world’s most valued digital asset, the decline in Bitcoin price weakened the overall cryptocurrency sentiment. Earlier this week, Binance, the world’s largest crypto trading platform, announced its plans to purchase FTX after it suffered a liquidity crunch.
The announcement by Binance saw the FTX Token crash 80% to a new low. The FTX crisis spurred contagion fears among cryptocurrencies which saw Bitcoin, the world’s most traded crypto coin, crash to its lowest level since November 2020.
Other tokens also sustained severe selling pressure, while crypto-related entities trading on traditional markets dropped. On Wednesday, prices were pressured to start the day and plunged by late afternoon amid a potential collapse of FTX.
Binance abandoned its plans to acquire Sam Bankman-Fried’s FTX after a due diligence exam leaving FTX on the brink of a collapse. Recent reports of mishandled customer funds and alleged US agency investigations of FTX saw Binance call off its plans.
Bitcoin Price Forecast
The 4-hour chart shows that Bitcoin price is stubbornly hovering above the critical support level of $16,000. The coin has crashed below the important level of $20,000. The BTC price has also managed to move below the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) is weak at 19, which is in the oversold region.
Therefore, the BTC price has a long way to go before bouncing back. It is likely to continue its bearish trajectory in the near term making the support at $16,000 the next target for bears. However, a move above the 25-day MA will invalidate this bearish view.