Bitcoin Slips Over 10% – Troubles Regarding FTX Bankruptcy Trigger Risk-off Sentiment 

Bitcoin’s price dropped by more than 10% and fell below $18,000. BTC is still at risk of further losses as the FTX heats up. Bitcoin’s price began precipitating as it fell below the $20,000 support level. The troubles at FTX exacerbated the situation, and the crypto market was under heavy selling pressure. BTC fell below the $19,500 and $19,000 support levels.

The bears successfully pushed the price underneath the critical $18,500 support. The price has dropped below $18,000 and settled well below the 100 hourly simple moving average. The price has corrected higher after forming a low near $17,276. The price rose above the $18,000 mark. BITCOIN price has risen above the 23.6% Fib retracement level of the latest slide from the swing high of $20,670 to the low of $17,276.

The price is currently trading below $19,000 and below the 100 hourly simple moving average. On the upside, an initial resistance level is near $18,400. On the hourly chart of the BTC/USD pair, a connecting negative trend line is forming with resistance near $18,380.

Bitcoin (BTC/USD) Technical Outlook

The first significant obstacle is located near the $19,000 level. It is close to the 50% Fib retracement level of the latest collapse from the swing high of $20,670 to the low of $17,276. A decisive break just above trend line resistance and $19,000 might spark a new surge towards $20,000. The next big resistance level is near $20,500, above which the price may test the $21,000 zone.

If bitcoin cannot break over the $19,000 barrier zone, it may resume its drop. On the downside, there is immediate support near the $18,000 mark. The next significant support level is around $17,250. A decisive break below the $17,250 support level might lower the price. In this instance, the price may fall near the $16,800 mark.