The Bitcoin (BTC) price targets now include $12,000, with Ethereum also expected to drop to $800 for the pit of the bear market.
Bitcoin saw a fresh rejection at $17,000 on November 18, 2022, as the nervous markets weathered more FTX fallout.
Bitcoin Has A $12,000 Price Target
Data acquired from TradingView showed BTC/USD failing to flip $17,000 to a support – a trend in place for nearly a week.
The pair, just like major altcoins, remained strongly tied down by cold feet over the FTX debacle and its knock-on effects for different crypto businesses. For analysts, the outlook remained just as grim, with already unappealing forecasts worsening in the wake of recent events.
QCP Capital trading firm wrote in its latest circular to the Telegram channel subscribers on the day:
“This underperformance of all crypto assets is here to stay until the bulk of uncertainly has cleared up – likely only near the turn of the New Year.”
In an exhaustive market summary, QCP wrote that its price projections for Bitcoin and Ether now had to plunge to reflect the effect of the FTX saga.
While updating its prognosis based on the Elliott Wave theory from June 2022, it confirmed that Bitcoin now had a target of $12,000 and ETH $800.
The post added:
“As a side-note, crypto markets have been trading akin to commodities ever since the 2017 top – with extended Wave 5s as the longest wave. Hence such potential price action with new lows into the New Year would be characteristic of previous bear market sell-offs.”
An accompanying chart showed the divergence between crypto and stocks in November, a correlation that exists between them firmly shaken due to the crypto’s underperformance.
In the meantime, popular trader and analyst Cantering Clark noted that if the current bear market in risk assets were to copy the Global Financial Crisis, heavy losses were still to come. Part of the tweet read:
“The Lehman bankruptcy was the climax of the 2008 financial crisis. It was bottom material qualitatively, but the market paused and then committed to 40% lower. Never say never, and don’t let your guard down.”
Previous reports indicate that $13,500 has also become a common downside target.
Crypto Pie “Getting Cut Massively”
In continuation, QCP also raised concerns over decreasing volumes and open interest (OI) across both centralized (CEXs) and decentralized (DEXs) exchanges. It wrote:
“So far, CEX derivative exchange volumes have been most affected. Combined futures OI is now back to pre-2021 levels, a massive backward step for the industry.”
On the issue of decentralized exchanges (DEXs), it stated that the data “implies the entire crypto pie is being cut massively.”
Buy Bitcoin NowThe post summarized alongside some more explanatory charts:
“Overall DeFi TVL is now less than 1/4 last year’s peak!”
“Even DEXes which would be expected to gain the most, have only seen volumes rise to Jul/Aug levels, even with all the emergency token/stables/chain swapping that needed to be done post-FTX.”
