Bitcoin price after trading above $30,000 for a couple of days, has now dropped below. And moreover, the less price variation within the asset has raised the speculation for lower levels to be hit in the upcoming days. A popular analyst, in a series of tweets, pens down the reasons why he believes BTC price is primed to hit $21,000 in the upcoming days.
The analyst believes that even if the star crypto surges above $30,000, it may eventually fail to hold as,
- It has been tested multiple times and due to constant rejections, it has become pretty weak
- The demand at these levels has dried up as the heatmaps prove this claim
- These levels are where a deviation arrives from a bear flag
- Lastly, the selling pressure is extremely high
However, the analyst further says that the minimum level target of the bear flag has not yet been reached which is around $23,000. Moreover, if the asset has reached the bottom, the funding rates should have been negative. But in the present case, it is still positive or close to neutral.
On the other hand, Altcoin’s perpetual contract rates are swinging with the no-man’s land after breaking from the strong support. And as the next support is below 35% to 40% a strong bear market is speculated to approach soon. Adding to the substance, the SPX is also extremely bearish, while DXY is showcasing immense strength as it recently broke previous highs.
Yet, the heatmaps which display the supply and demand are also bearish indicating that the supply is more than the demand. Therefore, it further indicates that traders are currently in deep fear and hence just to remain safe by letting off their holdings. If the market conditions remain similar, then the Bitcoin (BTC) price may drop hard towards $20,000 as predicted by the analyst very soon.
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Source: https://coinpedia.org/bitcoin/top-reasons-why-bitcoin-btc-price-may-not-hold-30000-aa-its-primed-to-tank-down-to-20000-very-soon/