BlockFi files for Bankruptcy: What’s next for the Bitcoin price?
- 29 November 2022
- Posted by: Vincenzo Stefanini
- Categories: Financial News, Investing & Trading, Money
BlockFi files for Bankruptcy
Yesterday the crypto lender BlockFi filed for bankruptcy.
It’s the latest crypto company to fail, after the collapse of the FTX crypto exchange.
FTX bailed out BlockFi in the summer.
Bitcoin Technical Analysis – Daily Timeframe
The Bitcoin price dropped yesterday in response to the news about the bankruptcy of BlockFi.
On the technical side, the bitcoin price has been rejected at the 21-day MA (blue moving average).
The price is right now testing this key level.
Overall, for the past few weeks, the Bitcoin price has been trading sideways in a range between around $15,400 and $17,600 and it’s still not able to break outside this range.
If the price can break above the 21-day MA, the next resistance will be at $17,000 and afterwards, the next target will be the $17,600 level.
On the other hand, if Bitcoin gets rejected at the 21-day MA, it will likely retest the support level at $15,400. If it doesn’t hold that support level, it would bring more downside to the price.
The price is still trading well below all the key moving averages, which is a bearish sign.
The daily RSI is still in the bearish area, at 42.
In summary, the short-term (daily timeframe) still looks bearish.
The break outside this wide trading range, in any direction, will likely be a strong move with high volatility.
Sentiment Analysis – Crypto Fear and Greed Index
The “Crypto Fear & Greed Index” is now in “Fear” mode today, at 26, better than last week.
The sentiment has been negative for the whole month of November.
This is understandable due to the recent events in the crypto space.
The majority of investors remain bearish on Bitcoin, due to the failure of the FTX crypto exchange and the possible contagion to other exchanges.
The price of bitcoin has also lost its correlation with the stock market, since the FTX collapse.
It’s likely that the price will continue to drop in the upcoming days, which could be a good opportunity for long-term investors to accumulate more.
Bitcoin Dominance
The Bitcoin dominance remains at around the 40% level.
It has been moving sideways between the 39% and 42% levels in the past 2,5 months.
It’s possible that the dominance will increase, as investors understand it’s safer to hold Bitcoin right now, rather than altcoins.
eToro Portfolio Update
I am keeping my long positions open on cryptos, but I currently have low exposure.
I also follow the stock market and could potentially open new positions (long or short), but I am waiting for the right time.
If you are already copying my portfolio, remain invested and keep the copy open.
If you are new, you can start the copy with a lower amount and add more every month.
Vincenzo Stefanini
eToro Popular Investor
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