VOT Research Desk
The collapse of the cryptocurrency exchange FTX resulted in a catastrophic decline in the price of bitcoin.
Due to the subsequent collapse of the cryptocurrency market, the exchange was forced to declare bankruptcy on November 11.
Due to their funds being trapped in the exchange after the abrupt collapse of the FTX platform, many investors, both institutional and retail, suffered significant losses. A hack that occurred shortly after the bankruptcy was filed made an already dire position much worse.
After falling to its lowest point since November 10 at $15,558 on November 22, the price of bitcoin has since made a significant comeback. Market makers went on a purchasing binge as a result of this sell-stop liquidity run, which provided an opportunity for sidelined buyers to enter the market.
After the latest recovery surge, the outlook for the price of bitcoin is bright, but investors shouldn’t get too excited. A breach of the $16,331 support level will indicate buyer weakness or weariness.
The bullish argument for BTC will be disproved if this rise is followed by a decisive conversion of the $15,721 support level into a resistance barrier.
In such a scenario, the price of Bitcoin might drop 5% and hit the psychological milestone of $15,000.
