BTCUSD (Bitcoin) has fallen sharply in the last couple of sessions on news that one of the largest crypto exchanges, FTX, is on the brink of default. The king of cryptocurrencies recorded a fresh two-year low of 15,620 before recouping a small part of its losses.
The short-term oscillators are indicating that bearish forces have taken total control. Specifically, the RSI has exited the oversold zone but remains well below its 50-neutral mark, while the MACD histogram is retreating further beneath zero and its red signal line.
To the downside, should the freefall resume, the price could initially test the two-year low of 15,620. Sliding beneath that floor, the bears might then aim at the 13,443 mark, which is the 138.2% Fibonacci extension of the 28,800-68,999 up leg. Failing to halt there, further declines could then encounter support around the 150.0% Fibo of 8,700.
Alternatively, if buyers re-emerge and push the price above its 50-day simple moving average (SMA), immediate resistance could be met at the recent peak of 21,400. A break above the latter may trigger an advance towards the five-month high of 25,200. Even higher, the 28,800 barrier could prove to be a tough one for the price to overcome.
Overall, even though BTCUSD has ceased its decline and is regaining some ground, it is likely to extend its retreat as near-term risks remain tilted to the downside. Nevertheless, a break above the 50-day SMA could revive bulls’ hopes for a sustained rebound.