Major cryptocurrencies pressured, BTC/USD under $17k

Major cryptocurrencies remained distressed across the board on Wednesday, weighed amid fears over the FTX-Binance deal.

Against the US dollar, Ethereum and Ripple are down more than an eye-popping 20%, and Bitcoin has shed 8% against its US counterpart, as of writing.

Since mid-September, BTC/USD displayed an unresponsive phase, enclosed between the underside of $20,000 and support coming in from $18,099. This week, nonetheless, witnessed sellers regain consciousness, refreshing lows of $16,835—levels not seen since late November 2020. Of course, technically, this will appeal to breakout sellers, consistent with the dominant downtrend. The major crypto pencilled in an all-time high at $69,000 in November 2021 and subsequently moulded a series of lower lows/highs, reflecting a monstruous 75% decline.

I find it difficult to believe anyone would disagree that this is a bear market, and dip-buying scenarios are (or should be) off the table for now. Further corroborating the downside bias is price comfortably trading under its 200-day simple moving average at $23,647 since the beginning of this year.

With support cleared at $18,099, the bearish pennant ([formed in May] drawn from between $25,338 and $31,418) pattern’s profit objective (orange) calls for attention at $15,523. Interestingly, between mid-June and mid-August, we also welcomed a bearish flag pattern (extended from between $17.567 and $21,711), which identifies a pattern profit objective (green) as far south as $7,674. Sandwiched amid these two aforementioned levels, chart studies also draw attention to a 100% projection at $12,307: an AB=CD bullish formation.

Given the clear-cut downtrend, the evident bearish pattern signals, and the overriding drive lower this week to multi-year lows, this is likely a market that sellers will continue to have the upper hand in until $15,523.