“The Door to These Levels Has Been Opened in BTC and ETH!”

After the FTX bankruptcy last month, Bitcoin and cryptocurrencies are at lower levels than they have been all year and may stay that way for a long time, technical analysts at Canaccord Genuity told CNBC.

“Bitcoin and Ethereum Dropped Below Significant Support”

“The fact that Bitcoin and Ethereum fell below the key support near $18,431 and $1,256, respectively, confirms that they are in a new medium-term downtrend,” analyst Javed Mirza said in a note on Thursday.

“This is a strong technical downside and opens the door to a test of major support near $11,918 and $560 respectively, down 30% and 57% from current levels.”

A move towards these levels is “likely to bring longer-term consolidation over time,” he added. On Wednesday, Bitcoin surpassed $17,000 for the first time in two weeks, according to Coin Metrics. It also hovered around this level on Thursday morning. Ethereum was trading at around $1,200.

Mirza also said that both cryptocurrencies are experiencing a short-term, one- to two-week bounce. According to the analyst, this could push BTC and ETH higher by 27% and 15% respectively.

To confirm this short-term uptrend, the analyst says there should be a multiple-day close above the 200-day moving averages of $21,465 and $1,481 respectively. “The crypto industry bears resemblance to the internet craze of the 1990s,” Mirza said.

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