Bitcoin hit its low point a year ago after the collapse of FTX. What is the situation today?

It was in November 2022 that we learned about serious problems for the FTX exchange and companies related to it, which led to the price of bitcoin falling to the lowest level since November 2020. Additionally, it led to the bottom of the bear market, which also started in November 2021 and lasted for a year. During this time, the price of bitcoin fell from USD 69000 to almost USD 15000, realizing a somewhat cyclical correction with a decline of 77%.

Anyone who became interested in this topic during the panic on the cryptocurrency market probably cannot complain. The price of the largest cryptocurrency turned around and a year after these negative events it increased by over 140%. Thus, once again, a cyclical pattern appears to be being implemented.

BTC and ETH ETFs can support cryptocurrency prices again

Over the past week, cryptocurrency markets have experienced significant price increases, leading to the liquidation of open trades totaling more than $400 million. Bitcoin (BTC) and Ethereum (ETH), as the two largest cryptocurrencies, were particularly affected by these changes​​. These increases may have been fueled by Bitcoin breaking the $37000 level, which triggered a broader wave of optimism in the market.

Ethereum also saw growth and followed the trend of the Bitcoin market. One of the potential factors influencing the price increase could be traffic BlackRock, which has taken steps to offer ETF (Exchange-Traded Fund) for Ethereum, which built excitement around the prospect of introducing a similar product to the market, following the application for a Bitcoin ETF.

This information indicates that the significant increases in Bitcoin and Ethereum prices may have been the result of a combination of market optimism, technical price conditions and potential new financial products related to cryptocurrencies.

Bitcoin hits resistance and seasonality

While October was usually a good month for growth on the bitcoin market, November and December were mixed months. I.e. In about half of the cases, prices rose or fell, with no clear indication of an advantage of one or the other. To this should be added the fact that the bitcoin price has reached potential resistance, which may range between USD 37000-39000. Yesterday, the market reached the middle of this range and there was a quick reversal.

It seems that currently, without new positive information, it may be difficult to continue the growth without a correction.