Some analysts say the price of Bitcoin (BTC) could drop to $ 27,000 in a bearish scenario if it breaks the support range of $ 30,000.

The potential drop to $ 27,000 is due to the fact that BTC should drop below $ 30,500, as it has risen sharply since January 11th.

What is the short-term bottom of Bitcoin?
For the foreseeable future, there are three major technical levels of Bitcoin at stake: $ 34,500, $ 30,500, and $ 27,000.

The $ 34,500 has been an important area of ​​support for the past 72 hours. Every time Bitcoin drops to that level, it quickly hits $ 36,300.

If $ 34,500 is breached, the next major support level will be $ 30,500. This is where Bitcoin bounced back from a major correction on January 11th, when $ 2 billion in futures contracts were terminated.

A trader under a pseudonym “Alex”, for example, said that if Bitcoin returns to $ 30,000 without any apparent reaction from the buyer, the deal will wait for $ 27,000 or downward of $ 30,000. He said:

“Decision-making is dynamic. Nothing is set in stone. But most likely, if the price drops to 30K, he will abstain next time. The game plan is to get ammo to buy a dip (to move). If 30k is breached, no You never buy up to 27K or over 30K. ‘
Likewise, another pseudonym known as “Myne” said a loss of $ 33,000 would likely result in $ 27,000. Before the opening of the weekly candle on January 18th, the trader wrote:

“I think we’ll stay here ($ 33,000) and make a steady jump on Monday. If we lose that level, Bitcoin is actually a scam and I owe any contact I had with him to $ 27,000.”

Bitcoin 4 hour candlestick chart with levels. Source: TradingView.com, Mayne
What happens to the alt currencies if the $ 30,000 falls?
Alex emphasized that altcoins would likely be “erased” with a 30% to 50% adjustment if the bitcoin price drops to $ 27,000.

Altcoins are generally less liquid and have much less volume than Bitcoin. Therefore, during a bearish cycle, altcoins often experience steeper withdrawals compared to BTC. Dealer explained:

“If for some reason BTC falls down to $ 27,000, you can expect to destroy everything 35-50% of withdrawals during the day. So, in this case, buying alternatives would be better than buying BTC dollars. It is definitely better to buy an alternative there than to buy BTC dollars with leverage. Identify winners and get to work. ”
So far, Bitcoin is slowly recovering from the support level of $ 34,500, which is a positive trend. It also indicates the level of support for whale flocks, which means that whales are likely to defend this level of buy orders.

The presence of whale groups worth $ 34,500 explains why Bitcoin has seen strong bounces in this region over the past 48 hours. In the short term, protecting this level will be the key to a convincing improvement.

Source: CoinTelegraph

LEAVE A REPLY