The $14,000 flashes again – Another analysis tries to determine the possible scenario that could shake the markets enough, and pull the price of Bitcoin (BTC) towards its bottom for this cycle.
S&P 500: A “doubly bad” rejection for Bitcoin
Bitcoin price drops as low as $16,014 on Bitfinex today, November 28, 2022. Cryptocurrency is trading at $16,216 at the time of writing this article. Its price is currently recording a daily loss of 2.12%.
While the price of Bitcoin still manages to hold above $16,000, analyst Kevin Svenson shared a weekly chart of the S&P 500, to illustrate his forecasts for the stock index, and their possible impact on Bitcoin.
The S&P 500 seems to be getting closer a downtrend line. According to Kevin Svenson, if the stock market index suffers a rejection at this line, as was already the case by thrice in the space of just under a year, Bitcoin “is not going to handle it well”, especially with the erosion of confidence “seen recently”.
In other words, Kevin Svenson believes that “a stock market rejection would be doubly bad for cryptocurrencies.
Towards (another) confirmation of the long-awaited $14,000?
As bearish signals multiply and traders and analysts watch for the next drop that would take Bitcoin to its bottom for this cycle, trader Rekt Capital looked to the cryptocurrency’s upcoming monthly close.
According to Rekt Capital, a monthly close below $19,500 – what is likely at this point – would confirm the fact that the zone of $13,900 – $19,500 is the “new playground” of Bitcoin. The latter was trading in this area in November 2020.
This analysis by Rekt Capital is also in line with the forecasts of traders who have been expecting for months, well before the collapse of FTX, that Bitcoin will fall to $14,000.
The latest drop in the price of Bitcoin is long overdue. The cryptocurrency continues to trade above $16,000, although the FTX crisis has just claimed another victim, with BlockFi filing for Chapter 11 bankruptcy protection.