Investing.com – It hit a new 2-year low on the confidence crisis that accompanied the FTX crash. However, this does not necessarily mean that the world’s largest cryptocurrency is facing a similar fate as the FTT token, which seems to be fading into irrelevance.
And former Wall Street analyst Tony Weiss expects BTC to test an all-time high early next year. This will not change, even if there is a further collapse to $11,000. In his view, enough investors have learned from history that deep drawdowns from all-time highs are the best chance for a rich return.
According to Fayez, a close above the old support at $18,500 indicates a bottom formation. At the same time, it indicates that the Bit Mix funding rate is as low as it was in May 2021 and this was the starting signal for a rise to a new all-time high.
Many traders are also sitting in short positions, which will push the price higher if crossing a certain level results in a short squeeze.
So if the Fed ends its monetary tightening cycle in the wake of lower inflation and economic output, the $100,000 magic mark should be within reach, Weiz explains.
Bitcoin technical levels
Bitcoin is currently down -0.08% at the BTCUSD price of $16,649, while the weekly loss is -19.27%.
After forming a new low at $15.603 on November 9, this was followed by a rally that broke the 23.6% retracement to test the 38.2% retracement at $17.841. However, the correction failed to close above this level and was followed by a further slide below the 23.6% retracement.
As long as daily closing price trading occurs below the immediate resistance at $16.986, a retest of the bottom is expected.