Bitcoin, the king coin, had begun making some decent gains in the month of October, breaking out from the $20,000 psychological resistance level and had even reached $21,400 at the beginning of the month of November, 2022. Bitcoin, which has a market cap dominance of around 40% as of writing and hence, Bitcoin’s crash is pulling the entire crypto market down with it too. The overall crypto market cap has fallen from over $1 trillion at the end of October to now close to $800 billion only.
This crash has made the entire ecosystem and its market participants extremely nervous and understandably so. The crash of the FTX crypto exchange, built by the extremely popular figure in the crypto space, its founder Sam Bankman-Fried has caused a dent in the sentiments of these participants too.
Thus, concluding from all the points above, we can clearly see that from a technical standpoint – things seem extremely bad for Bitcoin price right now. But on the on-chain metric front, we see some underlying strength still sustaining for the king coin. Hence, one can conclude that while immediate short term prospects look weak for Bitcoin, going forward a recovery is very much possible.
Also Read: Bitcoin price crashes below $16,000 within a week of the FTX collapse
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