On the 4-hour TF, the cryptocurrency leaped up after another unsuccessful attempt to gain a foothold below the $18,500 level. The gain is currently a little more than $2,000, and the price managed to gain a foothold above the relatively important level of $20,400. However, the main side channel of $18,500-$24,350 remains in force. Thus, bitcoin can spend any amount of time inside it. The technical picture has not changed. But now, it does not imply the continuation of a downward trend.
Meanwhile, "all is not well in the Danish kingdom." Yesterday, it became known that one of the largest miners in the world, the American company Core Scientific, is on the verge of bankruptcy. By the end of this year, its foreign exchange reserves may run out as well as other types of assets that act as reserves. Problems arose when electricity (following energy carriers) began to rise sharply in price, and bitcoin fell by more than 70%. The company also notes that the hashrate of the bitcoin network has increased, which requires large capacities for coin mining. Thus, mining costs are growing very quickly, and revenues are falling. All this leads to the fact that the company may be bankrupt. One of the problems is the previously bankrupt company Celsius Network, which has a $5.4 million debt to Core Scientific for hosting equipment services.
At the moment, the company's management is looking for ways out of the situation, but it can no longer fulfill its obligations in late October and early November. It is noted that the company may try to restructure its debts or raise additional capital by issuing shares or bonds. The company may also postpone capital expenditures or sell some of its assets. However, bankruptcy can also be declared for protection from creditors. As you can see, cryptocurrency companies are beginning to experience serious problems because bitcoin has sunk very much in price. But it is traded relatively cheaply for no more than 7-8 months. What will happen if the price remains "at the bottom" for a year or two? Recall that more than half of bitcoin wallets are now at a loss.
In the 4-hour timeframe, the quotes for "bitcoin" continue to move sideways. We believe the decline will continue in the medium term, but we must wait for the price to consolidate below $17,582-$18,500. If this happens, the first target for the fall will be a level of $ 12,426. The rebound from the level of $18,500 (or $17,582) can be used for small purchases, but be careful – we still have an absolute flat.
