The Bitcoin collapses again and it does so after learning that another platform called BlockFi has gone bankrupt. Leading technical analysts reckon that Bitcoin could drop another 20% in the short term. The price of the reference cryptocurrency does not stop falling and now few dare to guess at its bottom.
The cryptocurrency market does not win for disappointment after the fall of FTX, the third exchange platform worldwide by volume of transactions. Today another exchange called Blockfi has officially announced its bankruptcy stating that it will do everything possible to satisfy its creditors and to try to keep the company afloat. It is a direct consequence of the purge that is taking place in the market and that is beginning to show signs of exhaustion after the latest scams known as the case of the Luna or FTX cryptocurrency that caused an accounting hole of several hundred million dollars.
With this pressure, Bitcoin has lost more than 70% of its value in the last year and the famous $69,000 that it reached at the beginning of November of last year is far away. The price at the time of writing this news is $16,270.70 for each Bitcoin.
How far can you fall?
From a technical point of view, Bitcoin could go to visit $12,000 which would have a domino effect on other smaller-cap “altcoins” that could correct another 40-50% from current prices. There are well-known cryptos such as PolkaDot, which has great technology to connect the different blockchains with each other, which has accumulated a drop of 85% in the last year. Other popular ones such as Cardano also correct 80% or in the case of Ethereum the fall reaches 73% and the almost $5,000 that it reached is far away.
The chart above shows one of the most shared projections on social media in recent days, pointing to $12,000 as a possible bottom. The reality is that the fall of BlockFi adds more pressure to the sector and could also drag down other companies such as Genesis, which is also seeking emergency financing since it had 175 million within FTX.
Maximum pressure for a sector that just a year ago was in iron health, in just 12 months it has wiped out the savings of many investors who thought they had found the manna.
