Bitcoin price hits multi-year low at $15.6K, analysts expect further downside

Investor sentiment in the crypto market is floundering after Binance decided to nix its agreement with FTX to purchase the distressed cryptocurrency exchange. The events have sent Bitcoin to a new yearly low, while other altcoins have also taken a sharp downturn. 

Data from Cointelegraph shows Bitcoin (BTC) declining to $15,698 amid the chaos caused by FTX’s potential insolvency and the failure of the Binance deal. Analysts are turning to technical charts to try and find the next price path.

Analyst expects downside continuation with brief support at $12K

Independent market analyst, CanteringClark said that BTC price could possibly find a short-term bounce at $15,000. Citing an assortment of indicators, the analysts suggested that Bitcoin could eventually settle around the $12,000 level.

Will Bitcoin price drop below key multi-year moving averages?

Analyst Caleb Franzen explained that the estimated moving average (EMA) is an indicator utilized to gauge price over a certain period of time. According to Franzen, if Bitcoin price continues to fall, it would be the first time in its history that the 52 week and 104 week EMA’s crossed below the 156 week EMA.

Read more: Bitcoin sinks to new yearly low at $16.8K as FTX insolvency fears turn into contagion

Fear is growing and investors are selling at a loss

Dave the wave, an independent market analyst, highlights the growing market fear surrounding Bitcoin utilizing the logarithmic growth curve. According to Dave, if the monthly Bitcoin monthly candle closes below $16,907, Bitcoin’s growth will have detracted using this important long-term metric.

Citing the aSOPR on-chain metric, Glassnode analysis shows that spenders are selling at a 10% loss, something which has not happened since the June 2022 sell-off. 

Analysts across the market were hopeful that Binance’s bid to acquire FTX would stop the bleeding of the current sell-off and now that the deal is nixed, investors are likely to amplify their risk-off stance. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.