Bitcoin price has fallen below the $17,000 level which Bitcoin has been trading at over the course of the past week, as Bitcoin price has dropped back to the $16,000 region, with the possibility of a return to the recent low.
Here are the most likely scenarios that we might see in Bitcoin's next move:
A new trading range could end a prolonged downturn with an immediate rebound and a sharp price rally.
After several months of continuous downward movement, Bitcoin or other assets will enter an accumulation range, where investors will be able to get relatively cheap coins and form the basis for a new rally.
The $15,000-$18,000 price range could become a consolidation and accumulation matrix where Bitcoin might gain some strength and stability before a reverse rally.
In another scenario, Bitcoin may face more collapse, as it is possible for Bitcoin to decline more than it reached recently despite the gradual decrease in selling pressure in the market.
In the past two months, Bitcoin's volatility has been moving downward as the open interest on crypto derivatives trading platforms has decreased.
In addition to liquidating most futures and options positions, traders and investors are moving funds away from centralized trading platforms in order to protect their funds from meeting a similar fate to the FTX platform.
At the time of publishing the article, the price limit of $15,566 acts as a strong support level that should not be broken because most of the short and medium term portfolios which are mostly compatible with the selling pressure in the market have depleted their portfolios.
Currently, Bitcoin is trading at the $16,800 price level, losing 1% of its value in the past 24 hours.
