Is the sale really over? 2023 could change everything

by James · December 12, 2022

By Marco Oehrl

Investing.com – Cryptocurrencies such as Bitcoin and Ethereum have still failed to recover significantly from the FTX debacle. Trading continues near the low cycle amid doomsday scenarios that see BTC/USD fall below $10,000 in the next year.

However, former BitMEX CEO Arthur Hayes is convinced that the existing cyclical declines represent a bottom. He argues that the selling wave has already peaked, as all crypto companies that were threatened by the specter of bankruptcy have now gone bankrupt.

As part of the accompanying liquidity crisis, these companies were forced to sell their most liquid assets, which of course included Bitcoin. Meanwhile, these companies are at a stage where they can no longer sell BTC before disappearing from the market for good:

“When you look at the balance sheet of some of these heroes, there is no Bitcoin on it, because what are they doing, they sold Bitcoin when they went bankrupt, they sold Bitcoin during the wave before they went bankrupt.

I think the US financial market will become dysfunctional at some point in 2023 due to the Fed’s tighter monetary policy… At that point, I expect the Fed to turn on the printing press, and then boom shaka-laka – Bitcoin and all other risk assets. will rise higher.”

Hayes is not alone in his opinion. Investor Cathie Wood believes FTX’s demise will help the DeFi sector experience accelerated growth. This is because, in a transparent and decentralized business environment, questionable trading is impossible:

“I think what we’re learning because of FTX is how much more important fully transparent decentralized networks will be for financial services going forward… FTX, Celsius, 3AC were all closed networks. Opaque systems. You couldn’t see what was going on…”

From her perspective, that’s why Sam Bankman-Fried preferred to give Bitcoin a wide berth. Too transparent, too decentralized, and therefore impossible to control.

Bitcoin Technical Price Markers

Bitcoin is currently losing -1.60% at a BTC/USD rate of $16,908, while the weekly loss is -2.33%.

The cryptocurrency managed to hold above the 23.6% Fibo retracement support at $16,986 for three consecutive days. However, currently trading is taking place below it and the December 7 low of $16,715 can be tested.

A daily close below this level would shift focus to the November 28 low found at $16,013. Below that, further losses towards the cycle low of $15,504 would be possible.

Only if it manages to hold above the 23.6% Fibo retracement does a recovery towards the 38.2% Fibo retracement at $17,841 increase in probability. This resistance is reinforced by the psychological mark at $18,000 and the 55-day MA, which is at $18,023 .

(translated from German)

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