Bitcoin Rebounds after a Massive Sell-Off Triggered by FTX Crash

On Friday, Bitcoin’s (BTC) trading price recorded a surge as it rebounded from a major decline. Just a few days back, Bitcoin had suffered from a major decline in value mainly triggered by the crash of FTX.

From Decline to Rebound

The Thursday trading session was a shocker for Bitcoin investors. They witnessed a sudden drop in the trading price of BTC, which was alarming given the fact the asset was destined for a bullish run.

The investors were shocked to see as the price of Bitcoin was on the right track to hit $22k. However, the situation changed overnight and the value of BTC steered in the negative direction.

This particular day witnessed a massive sell-off of the largest cryptocurrency. The sell-off did manage to bring BTC down to its lowest point since November 2020.

Investors Expected Further Losses

As the BTC price kept recording declines, it came all the way down to $16,290.27. This was the lowest point BTC had hit in almost two years.

The analysts started coming up with their speculations about further losses that BTC would incur. They predicted that the trading price of BTC may plunge to $14,000.

However, before BTC could plunge to $14,000, it had to fall to the key support level of $15,800.

What caused the dip?

BTC’s dip was triggered due to the FTX exchange’s crash. It resulted in a chain reaction causing enormous sell-offs throughout the crypto industry.

Ultimately, the entire crypto market valuation fell below $1 trillion overnight. Being the largest cryptocurrency in the industry, Bitcoin took the worst fall as huge liquidations took place.

The sell-offs were stimulated due to the fear of cryptocurrency investors following the FTX crash.

BTC Surge on Friday

However, the bulls acted fast and the fear of the FTX crash wore off earlier than expected. This helped the investors chip in their contributions to push BTC’s trading price higher.

On Friday’s intraday trading, BTC’s price had risen to $18,054.31. This was the peak price BTC managed to hit on that particular day before consolidating around $17,300.

At the time of writing, the trading price of BTC is at $17,339.58, much higher than the key support level. The recent push from the bulls is a positive signal for BTC.

The recent surge has managed to push the RSI of BTC over the six-month low. As the RSI is now rising, it indicates that Bitcoin may start moving in the ascending line.

Bitcoin’s RSI is currently at 36.89 and it could become a challenge for the bulls to move it over 39.00. The technical analysis shows that 39.00 on the RSI is the resistance point.

It would require a great amount of buying power from the bulls to push it over the resistance mark. If that happens, then BTC may once again be able to cross the $20k barrier.