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The price of bitcoin has been under a lot of pressure recently as a result of investors' growing apprehension about the sector. BTC fell sharply, reaching a low of $15,718 from an all-time high of almost $70,000. Its overall market cap has plummeted to around $302 billion after falling by more than 26% from its peak point this month.

Will BTC rise once more?

The crypto sector has been in a depressing mood, which has caused a sharp sell-off in the price of bitcoin. The demise of FTX and the increase in interest rates in the US are the two primary causes of the catastrophe.

In recent months, the Fed has adopted a rather hawkish stance in an effort to combat rising inflation. It has specifically raised rates by 400 basis points, and experts anticipate further increases in the near future.

High interest rates are typically risky for risky assets like growth stocks and cryptocurrencies. This also explains why shares of other growing businesses, including Carvana, Tesla, and Wayfair, have fallen precipitously in recent months.

The recent failures of FTX and Alameda, meanwhile, have raised serious concerns about contagion in the cryptocurrency sector. The two businesses were major players in the cryptocurrency market, with FTX ranking as the second-largest cryptocurrency exchange globally in terms of valuation.

On the other side, Alameda was among the major liquidity suppliers in the sector. Therefore, its demise had a significant effect on the sector. Since then, many people have made the decision to leave the cryptocurrency sector permanently or temporarily.

It's unlikely that the recent sell-off in the price of bitcoin will lead to a capitulation. Interest rates must start falling or the Fed must indicate that it will begin raising rates before that can happen. Clarity on cryptocurrency regulations is also required.

Estimated price of bitcoin

The price of BTC has been in a significant bearish trend for the last few months, as seen on the daily chart. After the coin fell below the crucial support level at $18,048, which was the lowest point this year, the sell-off intensified. Additionally, it was a little lower than the peak of 2017.

When compared to all moving averages, Bitcoin is still considerably below them, and oscillators have gone into oversold territory. As a result, I believe the coin will keep declining in the foreseeable future. If this occurs, $10,000 will be the next significant psychological threshold to pay attention to.