Bitcoin price has come under intense pressure in the past few months as investors get extremely fearful about the industry. BTC plunged to a low of $15,718, which is significantly lower than its all-time high of near $70,000. It has fallen by over 26% from its highest level this month, crashing its total market cap to about $302 billion.

Bitcoin price has been in a deep sell-off as a somber mood has engulfed the crypto industry. The two main reasons for the crash are the collapse of FTX and the rising interest rates in the United States. 

The Fed has embraced an extremely hawkish tone in the past few months in its bid to fight soaring inflation. Precisely, it has increased rates by 400 basis points and analysts expect that it will continue hiking for a while.

High interest rates are usually dangerous for risky assets like cryptocurrencies and growth stocks. This also explains why many growth companies like Carvana, Tesla, and Wayfair have seen their shares collapse in the past few months.

Meanwhile, the recent collapse of FTX and Alameda has led to significant contagion risks in the crypto industry. The two companies were significant players in the crypto industry, with FTX being the second-biggest crypto exchange in the world by valuation.

Alameda, on the other hand, was one of the biggest liquidity providers in the industry. As a result, its collapse has had a major impact in the industry. Many people have then decided to completely or temporarily move from the crypto industry.

Bitcoin price sell-off capitulation will likely not happen any time soon. For it to happen, interest rates will likely start moving lower or the Fed will need to signal that it will start slashing. Also, there needs to be clarity on crypto regulations. 

            Bitcoin chart by TradingView

The daily chart shows that the BTC price has been in a strong bearish trend in the past few months. This sell-off accelerated after the coin moved below the important support level at $18,048, which was the lowest point this year. It was also slightly below the highest point in 2017. 

Bitcoin remains significantly below all moving averages while oscillators have moved to the oversold level. Therefore, I suspect that the coin will continue falling in the near term. If this happens, the next key psychological level to watch will be at $10,000.

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