The confidence of Bitcoin backer Anthony Pompliano is wavering as the broader cryptocurrency market faces ongoing declines.

Pompliano reiterates that the fallout from FTX has seriously compromised the credibility of the cryptocurrency sector, warning his 1.6 million followers on Twitter that institutional investors are now flinching away from crypto. This is a significant setback for an industry already facing barriers to widespread acceptance. The crypto market has struggled for months, and this additional issue is likely to harm its reputation even more.

He advises individuals to pause and evaluate the current circumstances rather than rush into decisions. Pompliano insists that the cryptocurrency market has substantial promise ahead, but it must reform itself to win back mainstream investors.

The Bitcoin advocate also points out that declining confidence in the overall cryptocurrency landscape may lead more investors to gravitate toward Bitcoin, which is often viewed as a straightforward and dependable investment during uncertain times.

Pompliano’s insights come at a time when the cryptocurrency market is experiencing further declines. In just the past day, the global cryptocurrency market has suffered a drop of about 5.55%, bringing the yearly loss to a staggering 71.76%. Bitcoin Currently, Bitcoin—the leading cryptocurrency in terms of market capitalization—is trading around $15,837, which is an astonishing 76.87% below its peak of $68,789.63.

While the sector is still grappling with the aftermath of the FTX collapse, it is crucial to reflect carefully before making any impulsive choices. The long-term repercussions of this event are still unfolding, and it appears that the impact of FTX will significantly hinder the market's recovery for some time.

What insights do technical analyses offer regarding BTC?

BTC is currently on a downward trajectory, with the recent selling pressures invalidating the bullish breakout pattern previously seen in the symmetrical triangle.

At the moment, the MACD indicator is positioned in the bearish range, while the RSI is dipping below 50, indicating that sellers have the upper hand. However, the 200-day simple moving average (SMA200) at 11,695 is acting as a substantial support level.

The Ichimoku cloud analysis also shows a bearish trend, as prices remain below the cloud, reinforcing the notion that sellers dominate the market.

The immediate support level stands at $13,800; if this fails to hold, BTC may fall to $11,000. Conversely, if BTC manages to recover and surpass $16,000, it could challenge the previous resistance level at $18,000.

Source: Tradingview

From a broader viewpoint, BTC still shows bullish tendencies over the long run, and the recent downturn should be interpreted as a healthy market correction. The next resistance level to watch is $20,000; if this fails to hold, BTC might revert to around $17,000.

In summary, the technical outlook for BTC appears bullish in the long haul, but bearish forces are at play in the short term. It’s advisable for investors to wait for clearer trends to materialize before making investment moves.

The crypto sector is currently encountering significant challenges following the FTX collapse, which is likely to tarnish its reputation and push more investors toward Bitcoin. Pompliano advocates for a thoughtful reassessment before anyone makes hasty decisions. He sees substantial potential in the cryptocurrency realm, but considerable work lies ahead to secure more mainstream investment interest. Investors ought to hold out for distinct trends before proceeding.

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• Moses is a seasoned freelance writer and analyst with a strong interest in how technological advancements are reshaping the financial landscape. He has extensively covered cryptocurrencies from both investment and technical perspectives and has actively participated in cryptocurrency trading for over two years.