Investing.com – The fact that the technology on which , and Co. are based is undisputed is revolutionary. However, when it comes to valuing cryptocurrencies, two hardened camps suddenly form. On one side are crypto enthusiasts, whose eyes light up when they talk about cryptocurrencies and their possibilities. But the other side not only questions the value of cryptocurrencies, but also argues that they are completely worthless.
The recent market turmoil has further exacerbated this discussion. Because while people were used to the fact that cryptos are quite volatile and many scammers are out to do mischief in this business, the collapse of entire ecosystems is completely new.
Even seemingly successful trading patterns can crumble within a week and trigger significant market disruption. This will inevitably lead to market share shifts within the crypto business model.
As FTX fades as one of the big lenders, investment banks like Goldman Sachs (NYSE:) are poised to take over this market. We are aware that we can earn a lot of money with the advance of confidence shown. Mathew McDermott, head of digital assets at Goldman Sachs, said:
“We now have very interesting opportunities at attractive prices.”
Noisy Standard charter (LON:) The gold rush period among traditional financial institutions has only just begun. Because while many are hoping for Bitcoin to reach around $17,000 and new all-time highs from here, a crash to $5,000 is expected in the coming year.
Institutions like Goldman Sachs and Blackrock would benefit from such development. The shares can be taken over at lower cost to generate maximum returns in the sequel. Because one thing is well known, FTX was a money printing machine. There is growing evidence that FTX only collapsed due to management incompetence. A problem that can even be systematic in the crypto industry when founders overestimate themselves and do not give up their skills.
Although this is a rather bleak outlook for the crypto community in the short term, there are positives as well. Tim Draper is one of the enthusiasts. He said:
“I postponed my prognosis for six months. My target price remains $250,000. I expect a flight to quality and decentralized cryptocurrencies like bitcoin and some of the worst coins.
Bitcoin Technical Price Marks
Bitcoin is currently down -1.92% at a price of $16,978, while the weekly gain is 3.58%.
Although the cryptocurrency hit its daily high of $17,395 yesterday, it ended the day within the 23.6% Fibo retracement of $16,986. Thus, the trades continue to take place in the range around the mentioned Fibo retracement, which has existed since December 1st.
A daily close below the 23.6% Fibo retracement would favor a decline towards the November 28 low of $16,013. Below that, focus would shift to the November 21 low of $15,504.
On the upside, the 38.2% Fibo retracement of $17,841 offers immediate resistance, followed by the 55-day ma at $18,266 and the 50% Fibo retracement of $18,533.
By Marco Oehrl
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