HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Why Bitcoin Trading Below $28,000 Is Nearly Impossible

Bitcoin 2021/01/14 12:05 by Adrian Klent
Why Bitcoin Trading Below $28,000 Is Nearly Impossible

Time and time again, analysts use market maturation as yardsticks for where Bitcoin is headed. Sometimes these indicators are used to set the bar on the levels Bitcoin is unlikely to trade at. Per reports from last week, a popular analyst placed the bar at $20,000; a price mark that Bitcoin only managed to attain recently. Taking it a bit further is on-chain analyst Ki-Young Ju, who has recently observed that a drop to $28,000 is nearly impossible.

The analyst made this known in a recent Twitter post, in which he disclosed that institutional investors threw their weight behind Bitcoin during the recent bear market by buying the dips. He suggests that these investors have the capacity to maintain momentum at the $30,000 price region, in case Bitcoin makes a retest to that level.

“There are many institutional investors who bought BTC at the 30-32k level. The Coinbase outflow on Jan 2nd was a three-year high.

Speculative guess, but if these guys are behind this bull-run, they’ll protect the 30k level. Even if we have a dip, it wouldn’t go down below 28k.”

In contrast, some community members speculate that the market has a tendency to flip before the bull run sends Bitcoin to new highs. Unlike the $28,000 and $20,000 price levels predicted by these analysts as the maximum low, others professed that a 70% decline would not come as a surprise, considering the ever so volatile state of digital assets.

Meanwhile, the technical chart observers noted that a full bearish trend is forming, adding that the bullish rally needed for correction will only precede higher whale purchases.

Meanwhile, a response to the tweet suggests that a sideways or upside movement is more realistic. 

“Everyone’s calling for a bearish breakdown of this head and shoulders. Seems too easy. Every single ascending wedge (typically bearish) this run has broken to the upside. Still possible, but my bet is sideways some more or UP.”

Last week’s technical charts saw Bitcoin make multiple upside movements. This bullish trend line, although as common as bearish trends, could still make its way back to the market if pressure is held at critical points.

Bitcoin Has Apparently Sucked Away Only 2% Of Gold’s Market Capitalization So FarBTCUSD Chart By TradingView

At press time price of $38,158, Bitcoin struggles to retest the $40k resistance level. Although gains are stacking up, it may take longer for Bitcoin to gather enough momentum to retest the aforementioned resistance as price rejection continues to suppress the big bull.

0 Like(s)



You should also read...

Bitcoin 01/12/19 20:00 by Nick Chong
Bitcoin Indicator Suggests Money Flowing Into Market: Price Bounce Incoming?
For some reason or another, bearish sentiment has swept the Bitcoin market; now, you have countless cryptocurrency investors calling for another 80% decline in the market capitalization of digital ass...
Read More
Altcoins 28/04/20 03:00 by Cole Petersen
Here’s How Far Ethereum Could Drop if it Confirms an Ultra Bearish Technical Pattern
Ethereum, like most of its peers, has incurred a slight amount of selling pressure today that has led it to decline from highs of just under $200 that were set yesterday. This tempered move lower come...
Read More
Bitcoin 02/06/20 12:59 by Yashu Gola
Analysts Eye $20,000 Bitcoin as Price Breaks Major Resistance
Bitcoin leaped over $10,000 in Monday trade as a weakening dollar sentiment sent risky assets higher. The cryptocurrency corrected lower in the early morning Tuesday but signaled strength amid an opti...
Read More
Altcoins 15/06/20 23:50 by John Kiguru
Ethereum Bulls Accumulate For $300 High After Altcoin Hits Key Entry Level
The markets have started the week with a crash. A majority of coins wiped out 5%-10% in the early hours of Monday. Most analysts have explained the move as a quick shakeout triggered by the whales. T...
Read More
Bitcoin 04/08/20 18:00 by Cole Petersen
A Visit to This Crucial Support Region Could Start Bitcoin’s Next “Moon Mission”
Bitcoin has faced some turbulence throughout the past couple of days. Following the benchmark cryptocurrency’s firm rejection at $12,000 this past weekend, it has largely been consolidating within t...
Read More