Bitcoin (BTC) peaked around $18,400 on Wednesday leading up to FOMC, but then plummeted back to $17,700. However, bitcoin also lost grip on that yesterday afternoon and then dropped to $17,400.
Last night, bitcoin briefly dipped to $17,300, but immediately recovered to $17,400. This morning, bitcoin started to rise gently, touching $17,450, but is now dropping to $17,430 on Binance and $16,380 on Bitvavo.
This puts the bitcoin price down 1.5% today. The trading volume fell by 23% in the past 24 hours. The total market capitalization is $336 billion and the dominance is 39.4%. The Fear & Greed Index comes out at 29 (Fear).
Bitcoin Fear and Greed Index is 29 ~ Fear
Current price: $17,361 pic.twitter.com/fgBUZYp7nA— Bitcoin Fear and Greed Index (@BitcoinFear) December 16, 2022
Red markets
After the rate hikes by the US and European central banks, and the speeches that followed, fear seems to be on the rise again in the financial markets.
European markets took a heavy blow after the ECB announcement and US stock markets also closed deep in the red yesterday. Meanwhile, concerns about a possible recession are mounting again. It doesn’t look like bitcoin can ignore these market conditions just yet.
— Investing.com (@Investingcom) December 15, 2022
Does Binance have enough reserves?
The largest crypto exchange in the world, Binance, has seen more than $5 billion in crypto flow out in recent days due to all the fear surrounding the company, reports analytics company Delphi Digital.
.@binance saw more than $5B of net outflows between December 13th & December 14th.
This is the largest 2-day outflow since the exchange started providing proof of reserves on November 10th. pic.twitter.com/Spy9jAG0Vu
— Delphi Digital (@Delphi_Digital) December 15, 2022
Nevertheless, analysis company Glassnode reports that Binance probably has enough bitcoin reserves for the time being.
A property of public blockchains is our ability to monitor the balances held by large entities (like Exchanges).
For Binance, we estimate total #Bitcoin holdings at around 584.6k $BTC (dark-🟠).
This compares to 359.3k $BTC in self-reported Proof-of-Reserves wallets (light-🟠). pic.twitter.com/58GX8pYRig
— glassnode (@glassnode) December 16, 2022
Can BTC miners survive?
In addition, there are still major concerns about the bitcoin miners. Cryptoquant analyst Abram reports that currently the cost of mining a single bitcoin is around $19,500 while the price is hovering around $17,500. How long can the miners keep this up?
Can the miners survive?
“The loss of miners began since June 12, 2022, when bitcoin reached $26,700, and the cost of mining one bitcoin at that time reached $29,450.”
by @abramchart— CryptoQuant.com (@cryptoquant_com) December 16, 2022
Important bitcoin price levels
Many analysts seem to agree that bitcoin will once again retest the area just above $18,000. Should bitcoin be able to conquer this level, the price could shoot towards $20,000. However, it seems that most analysts expect a rejection, including those from Crypto Insiders.
$BTC levels 🔥
➡️ $19.9k ($22m sell orders) = major resistance
➡️ $18.5k ($13.7m sell orders) = major resistance
➡️ $12k ($62m buy orders) = major support@Mtrl_Scientist #firecharts pic.twitter.com/2IU6GB5cdp— Onchain Edge (@onchain_edge) December 16, 2022
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