Bitcoin has fixed below the Fibonacci 127.2% level at $18,500 and has not attempted yet to to move back above that level. This fact proves that there are still no bulls in the market. Therefore, Bitcoin has currently no chance to grow. There have been different views about the market bottom and the asset's low price over the past weeks and months. However, hardly any investors rush to buy the first cryptocurrency. Consequently, many of them expect BTC to fall more significantly.
Notably, the last round of Bitcoin's decline was caused by FTX collapse. Though the asset was likely to drop, this fact only accelerated the decline. Currently, the market has already overcome this difficulty. However, unfortunately there is a new problem which may also trigger a fall. Yesterday, the news came that one of the largest cryptocurrency companies, Genesis, is on the verge of collapse. Bloomberg reported that Genesis was seeking new sources of funding. Therefore, it is another cryptocurrency company that has liquidity problems amid a 70-75% drop in the value of Bitcoin. If the price of the first cryptocurrency is very low for a long time, it causes problems for many crypto market makers from miners, who now see no reason to mine and sell Bitcoin, to exchanges, which often use funds of their clients not for their primary purpose. When it is time to pay their bills, they don't have the sufficient funds.
Moreover, the news also arrived that Genesis management had asked Binance and Apollo to help. Binance has already declined, while Apollo may be interested in Genesis' loan portfolio. The company said it would not intend to file for bankruptcy in the near future. However, this information may be the reason for withdrawing all money from this company and not waiting for the relevant application to be filed. The situation with Genesis may provoke a new BTC decline.
In the 24-hour timeframe, Bitcoin finally made a successful attempt to overcome the level of $18,500. Currently, the decline may continue with the target of $12,426. As mentioned above, the fact that the asset reached the descending trend line does not mean the end of the bearish trend as the price was in the sideways channel. Now the lower boundary of this channel has been overcome. Therefore, Bitcoin may continue falling.
