Bitcoin price nowhere near its bottom as dominoes continue to fall with BTC below $16,000

Bitcoin (BTC) price is under pressure as Genesis issued another warning late Monday evening that it is coming up short of funding and has trouble attracting investors to back its services. The digital-asset brokerage could be the next casualty in line after the FTX imposes the trembling of the cryptocurrency space into its core. Crypto lender BlockFi, meanwhile, is struggling to stay afloat and is seeing its cash balance shrink at an excruciating pace.

BTC received its first call for $5,000

Meanwhile, Bitcoin price is seeing eyebrows raised by many analysts and traders in the aftermath of FTX and the dent in the image of cryptocurrencies. Peter Berezin, chief global strategist at BCA Research, wrote a note where he labeled Bitcoin at $5,000 in the coming weeks. In his opinion, the FTX meltdown and events that will continue to unfold in the coming months look like an Enron event rather than a Lehman Brothers event. 

BTC price, luckily, is not trading near that $5,000 level at all, although there are signals to be aware of. The break below $16,020, the pivotal level from November 6, 2020, the slip below $16,000 and the break of the monthly S3 are red traffic lights not to be ignored. The road is open for a decline of roughly 22% toward August 18, 2020, nearly $12,536.

BTC/USD daily chart

Two external elements could, however, help ease the pain and pause the current decline that is further increasing losses in this bear market. One element is that the Relative Strength Index (RSI) is too near being oversold and needs to get an unwind soon from sellers reverting to the buy-side to materialize their gains. By doing so, price action would trade back near the monthly S3. Should the US Dollar weaken a bit after its rally since last week, BTC could even pop up6% to test the red descending trend line.