ADOPTION NEWS

How low can the price of Bitcoin go?

By 4 Mins Read

Bitcoin (BTC) has a new BTC price target to consider as the cryptocurrency market falls due to a series of liquidations.

BTC/USD 1-hour chart. Source: TradingView

Binance, the largest global exchange, faces a hefty fine due to regulatory enforcement actions by the U.S. Department of Justice. CEO Changpeng Zhao, informally known as CZ, will have to leave his position and could even go to jail.

This was a watershed moment for one of the biggest names in the cryptocurrency industry, and the market undoubtedly reacted with understandable concern.

BTC/USD fell to $35,600, its lowest level since November 16, according to data from Cointelegraph Markets Pro and TradingView, before rebounding as short positions closed.

Altcoins are in even worse shape, with many large tokens remaining 3-5% lower on the day at the time of this writing.

What could happen next, and how are Bitcoin market participants bracing for volatility? Cointelegraph takes a look at some of the popular BTC price targets currently underway.

“Max Pain” BTC price is currently $32,000.

Forget about a “quiet” week in the cryptocurrency industry. Binance bombshell puts an end to boring Bitcoin trading, says James Van Straten

In response, research and data analysts at cryptocurrency insights firm CryptoSlate warned that volatility catalysts will continue to emerge.

This is likely to add new fuel to an already volatile market environment thanks to a massive $3.8 billion or 104,000 BTC options open interest expiration event the day after the US Thanksgiving holiday.

Van Straten says that thanks to their configuration, the largest BTC price drop will now be between $1 and $32,000.

“With a put/call ratio of 0.77, the data primarily indicates bullish sentiment as evidenced by the higher call open interest at approximately 58,000 Bitcoin compared to 45,000 Bitcoin put options,” he wrote.

“What stands out is that the ‘maximum pain price’, an important indicator in the options market, is pegged at $32,000, which is lower than the current Bitcoin market price. This suggests potential pressure on the Bitcoin price as the expiration date approaches.”

Bitcoin options open interest based on strike price chart. Source: Deribit

Van Straten added that although the options numbers “indicate expectations that the price will hover around this level,” Bitcoin would remain bullish if the $32,000 scenario becomes a reality.

“The bull market theory will still hold true,” he said. said X number of subscribers.

Betting on “Notorious BIDs”

Material Indicators, an on-chain monitoring resource that analyzes order book composition, is also predicting a decline close to $30,000.

This was already in the plans, with the analysis suggesting Bitcoin would need to retest the area of ​​bid liquidity after its rapid rise to an 18-month high of nearly $38,000.

all snapshot After the Binance news, bids were seen raising the order book closer to the spot price in an attempt to stem the downward trend in BTC/USDT.

“The order book shows an anxious seller calling for a $38,000 advance order, but that could change if bulls can gain enough momentum to reclaim the 21-day MA. Failure to do so is expected to push it lower,” Material Indicators explained at the time.

This is once again below the spot price based on the 21-day simple moving average (SMA), which currently stands at $36,228.

This is a 1-day BTC/USD chart using the 21SMA. Source: TradingView

Ultimately, it was summarized that the $33,000 bid support patch, known as the “Notorious BID,” should be maintained.

“Here, $35,000 seems like a viable target,” the analysis concluded.

“In full disclosure, I would like to see the $33,000 retest fail, but I’m not sure yet whether the Notorious BID will allow it.”

BTC/USDT liquidity data. Source: Material Indicators/X

Binance withdrawals remain moderate

As Cointelegraph reported, even before the Binance announcement, various bearish Bitcoin forecasts emerged this month.

Related: BTC Price Returns $34.7K in Major Profit to Bitcoin Exchange Users

This includes the $30,900 bottom, part of a broader BTC price channel that has not yet been closed by the bulls.

Commenting on the market’s reaction overnight, CryptoQuant contributor Gaah, the trader behind it, pointed out the lack of consistent stablecoin withdrawals on Binance as a result.

Earlier this year, liquidity concerns and a regulatory crackdown on exchanges prompted massive withdrawals.

The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.