Bitcoin price has plunged below $20,000 after a long stay above the key level, raising the possibility of a bearish continuation in the near term.
If BTC fails to establish support at the $20,000 level, it may fall to $15,000.
On the other hand, if Bitcoin’s flagship cryptocurrency recovers above $20,000, it may provide room for a new rally.
In the last week, BTC has lost nearly $10,000 from its value and is currently trading at $18,600.
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The market is focused on Bitcoin’s next move as the cryptocurrency tumbles below the key $20,000 level. If Bitcoin fails to find support at $20,000,
it could fall to $15,000, according to market sentiment.
At the time of writing, Bitcoin is trading at $20500 and is up by 4 percent, which is nearly $10,000 below its value from last week.
The cryptocurrency’s sudden drop has caught the attention of investors and traders alike as they try to discern the market’s next move. Despite the benefits, there are still concerns that the property isn’t out of the woods yet.
The most recent BTC price decline caused the asset to form a weekly candle below the 200-week moving average (MA).
The price of bitcoin last reached this level in March 2020, when both crypto and equities markets were reacting to the economic consequences of the pandemic, according to a chart published by a cryptocurrency trader.
According to the analyst, Bitcoin must recapture the 200-week moving average as support for a long rally. This level has typically served as strong support.
For example, the lows that have been reached during prior bear markets occurred around 200-MA. The next step will be determined by whether it has outperformed the 200-MA.
Even though a lower price movement is possible, Bitcoin has a long history of not plummeting too far below. Bitcoin has a history of fluctuating temporarily below the 200-MA before climbing back up and then dipping again.
However, some industry experts predict that Bitcoin’s price will drop further. According to Peter Schiff, an economist
who believes in the long-term viability of Bitcoin and other cryptocurrencies, the worldwide crypto market sell-off will continue until Bitcoin reaches zero.
According to him, the stock market is simply a bubble that has been overdue to burst for quite some time.
MARKET MAKERS HAVE BEEN RUNNING BOTS TO SELL BTC ON COINBASE
Moreover, some other market analysts remain bearish in the near term. For instance, Jim Cramer recently predicted Bitcoin will Dump to $12,000, saying it is in Its “Pre-Fiasco” Level.
Aside from technical analysis, other elements such as the general economy will influence Bitcoin’s future tactics.
The bitcoin price plunge has coincided with the broader market, as the Federal Reserve attempts to counteract high inflation by announcing an interest rate increase while combating recession worries. - coinquora